Gen Y Marketing Podcast - Episode 4

Yes its another installment of the Gen Y Marketing Podcast, episode 4 in fact. A big thank you to Glenn Rogers for dropping by for a chat and of course our usual run down of marketing news.

And check out the Gen Y Marketing Podcast blog, Jake installed a new feed player on the blog so now you can listen to the podcast on the blog. If you like what you hear, subscribe to it in itunes or your other favourite podcatchers.

Cheers

Ninemsn Cutting Into Video Sharing

So I was playing around on yourcut the other night, just checking out new videos, how you get paid, how videos are hosted…what’s that, you don’t know what I am talking about? Yourcut? Never heard of it? Don’t worry, most people haven’t.
Yourcut is an online video-sharing site that allows people to make money from putting their videos online. Users share revenue with yourcut 50/50. Sounds a little like revver? Well that’s because it essentially is. Revver released their API, and ninemsn used that to develop this site. For a review of the aesthetics of the site, check out online marketing stuff’s review here.

My main problems with yourcut is that ninemsn have kept the ninemsm branding at the top of the page. Apart from looking a little untidy, I don’t want to be reminded that this is ninemsn. They are daggy. Makes it feel like a forty-year-old man dressed up in skate-gear trying to look young. These are vastly conflicting messages being sent out to the user. Ninemsm is a stale brand for young people – the majority of users for video-sharing sites. Having the ninemsn presence on the site will make it seem not fresh and a little too corporate. I can’t see why ninemsn could not create this as a stand alone site, keep their Australian focus, and drive traffic to it from the ninemsn landing page they way they are attempting to do now.

Given the nature for online business these days is that there is very little, or no, prize for being second – ninemes’s reason for undertaking this project surely could not have been to rival youtube. Perhaps ninemsn, with its history and competence is selling ad space through television and print media, are attempting to turn these skills to online videos. It will be interesting to see how well they will do at this. My opinion at this stage is that a 15 second ad for a 30 second clip is too long and a waste of my time.

Hoyts Red Carpet.

Over the weekend I went to Hoyts Cinema with a friend of mine. We saw the new Michael Moore documentary, Sicko, and despite not hating the film as much as I thought I would, there was something else I found altogether more interesting.

So we waited in line for 15 minutes (50 people, 2 cashiers) to buy our tickets. This was at 7:30pm on a Friday night – so healthy crowds should be expected by Hoyts – surely more than 2 cashiers would help things along. But I will give Hoyts a free pass on that one…

Next, the pre-screening ads and coming attractions. The final ad to screen was an ad for a Hoyts service called Hoyts Red Carpet – their new exciting new concept for online ticket collection. The ad basically consisted of an animation (the pic show on this post) which explained that if you booked your tickets online, you would go to the very top of the queue and never have to wait to purchase tickets. Excellent. Pre-booking can be easy and save time and money its…Hang on! Hang on just a god damn minute!

Lets just stop and consider what this advertisement is really saying. If you purchase tickets the new way, the way Hoyts wants you to, life is sweet and you never have to wait. Super! However, if you book tickets the ‘old’ way, the way you have always purchased tickets – it will be like queuing for bread in Soviet Russia – Hoyts will punish you! (Notice the crowd in the picture – I can’t even see a Cashier attempting to service them).

I am all for organisations trying to reduce cost, improve service delivery and get customers to self-select the most convenient and least costly way of doing business. But punishing people for doing business with you the way they always have, really shows a disdain for the customers.

Does anybody remember when banks went on their crazy cost-cutting bonanza where they closed branches, charged customers for over-the-counter and face-to-face transaction to push customers to use cheaper, less personal transaction methods (like atms and internet banking)? The banks certainly remember. The effect on the banks was to alienate retail banking customers to such an extent that it severely restricted the banks ability to up-sell and cross-sell to higher profit services such as loans and insurance.

The banks eventually came to their senses and stoped punishing customers. Now we see branches re-opening, more managers in branches and a higher level of personalisation for customer service. (I even work for a bank whose new goal is "to be Australia's finest financial services organisation through excelling in customer service"). Perhaps Hoyts will come to their senses too - otherwise we may just all stay at home, download the bit-torrent and watch it on the plasma!

Diet Coke Films goes ABC Sunday Arts

So I promised I would do a follow up on the Diet Coke Films site to see how they had progressed and to be honest if I hadn't said I would do this chances are I would have never revisited the site (it doesn't quite make it to my top 10 favourite web pages).

Diet Coke know their customer pretty well and at the risk of pigeon holing them its 30+ females working in a corporate environment, so it makes me wonder why today's movie got a look in. "Wally the Rainbow Serpent" is a well produced movie don't get me wrong, but I'm not sure that it really suits Diet Cokes core demographic more suited to a 3min break between Robert Hughes review of 20th century American sculptors and a piece on the Western Australia Ballet Company on ABC's Sunday afternoon programming. According to the site this is the second time Diet Coke have run the film (for those who missed it the first time) and has a total 1572 views, a little short of the 162,228 views of a cat rubbing its face on youtube.

So it seems as though the site isn't doing as well as they would have hoped. Hats off to coke for trying the idea, but I get the feeling that they would have been better off employing some true online video content consumers to consult on the project rather than going down the slick marketing path. Deciding to sacrifice usability for the sake of pretty backgrounds and flash animations are unacceptable in my opinion. Youtube is a great site cause its simple and the videos load quickly (and really that's why I'm there to watch the videos) where as the coke site makes me wait for ages for the video to load.. not cool.

Is facebook really a Malcolm Gladwell experiment?

So Gladwell has this bit in his book the tipping point where he talking about how your circle of friends is probably more like a pyramid thanks to the personality types he calls "connectors". A connectors is that person who brings people together, the girl at the party who says "oh you have to come meet my friend...", I'm sure you know the person I am talking about. From a marketing point of view connectors also serve a integral purpose of evangelising your business to others always introducing people to your products and services. If you want a better explanation, chapter 2 of The Tipping Point can sort you out.

So Facebook has the "how did you meet" function that I find to be a pretty interesting read. For the most people are linked by "they went to school together" or "they met randomly" but every so often when looking down a list of someones friends you find the recuring message "they met though [mutual friend]". This mutial friend is a connector, the more times they appear in this field the better connector they are. As much as I hate marketers invading social networking sites trying to turn the thing into an Amway-esque sales loop, I can certainly see the value that can be gained by marketers speaking directly to these people.

So someday someone will find a way to view the people on facebook who top the charts in the "they met through [mutual friend]" and marketers will realise they can just focus on these individuals and stop wasting money pitching their brand message to someone that will tell no one.

Fragmentation and Advertising Value

So I listened to the Cameron Reilly interview with Geoffrey Bowll, Managing Director of Melbourne based ad agency Starship today. Excellent interview! Two intelligent guys, not afraid to call a spade a shovel. Definitely give it a listen. And thanks to Jake to bringing it to our attention :)
One thing Geoffrey Bowll was talking about in the podcast was, with the decline in TV audiences and increasing media and audience fragmentation, how this could be used by advertisers and marketers to their advantage.

Consider a simple (crude example). Suppose a clothing manufacturer has two choices to advertise their products; TV ads and Podcast sponsorship.

TV ads: cost of ad airtime = $20,000 for 1,000,000 views or eyeballs.
So, disregarding notions of brand awareness and loyalty etc, for this ad to just break-even (at an industry standard 10% EBIT return on Sales) it would require $200,000 worth of sales. If we assumed each purchase for a person was approx. $50, that would be 4000 customers, from that one ad, that would need to be compelled to purchase the product to achieve an acceptable ROI on the advertising expense.
To break-even:
TV ad rate of return per set of eyeballs is $0.2 (each person who sees the ad needs to spend approx 20 cents on your product to break-even)
TV ad conversion rate needs to be 0.4%, which is the percent of people who saw the ad that need to buy the product to break-even, (given an average purchase price of $50 per person).

Podcast sponsorship: Now let’s consider the alternative. Suppose there was a podcast dedicated to fashion. This podcast has a modest audience of about 30,000 listeners. Rremember people who are listening to a fashion dedicated podcast are most likely fashion enthusiast, industry people and early adopters - a marketer’s wetdream.
Ok, so the audience is small but the cost of the sponsorship will be small also. Let’s say the cost of sponsorship is $1000 per podcast episode (this is an upper range estimate - the rate for most popular podcast is $25 per thousand listeners / downloader’s).
To break-even the podcast ad would need to generate $10,000 worth of sales. This gives us the following to break-even figures:
Podcast ad rate of return per set of eyeballs is $0.33
Podcast ad conversion rate needs to be 0.67%

If you are aiming to get 4 people out of every 1000 people who see your TV ad to purchase your product (with the likely TV audience a scattered demographic), getting 7 out of every 1000 people who hear you podcast ad, with an audience that you know is interested in a similar topic, likes to support the "free podcast” they are receiving and are generally early adopters, seems like a walk in the park.

My advice to anyone considering moving from traditional media advertising to new alternatives: Give it a try on a small scale. Build in tools and applications that enable you to track results. The small cost of new media makes it a small risk in which you can easily track the results.

And for those that think fragmentation and the shift from traditional media is not happening, check this article on Afterworld. Afterworld is the first television series to be made available on mobile phones and the web simultaneously, created by three-time Emmy-nominated producer Stan Rogow.

Big Kevin07

I plan on two posts today. That’s right, you heard me, two post on the same day. Value for money blog today. ...unprecedented on this blog.

1. Kevin07

I have mentioned before the ways that Australians are utilising new media and social networks for the upcoming federal election (in particular with Myspace Impact - see here). Now Kev (no Rudd anymore) has his own very web2.0'ie' site, Kevin07, that brings all his online efforts together.

It’s a nice little site, feels more like a fan site than a party site, and does a good job at showing the personal side of all this politicking. Check out some cool blogs that talk about it in a little more detail (and some would argue credible analysis than I have here :))
Social Media in Australian
Laurel Papworth

I will just say, with the leaked Liberal party pollster report, continuing poor polling results for Howard and the way that Kev's has been accepted in the media (both "mainstream" and alternative social media) - it seems to me that Kevin Rudd for PM has crossed, what Gladwell refers to as, the tipping point. The point of wide and default acceptance, where it seems that people have decided already that Kevin will be the next Prime Minister. This enables people to emotionally invest further with Kevin as the acceptance deepens and widens (oooh I just love it when marketing actually applies to the real world!)

Just In...Someone at work just pointed out to me that since Big Kev died last year, there has been a Kevin-void in society that is being filled by Mr. Rudd. How much time after Big Kevs death do we need to let pass before we can start calling Rudd "Big Kev"?