The Gruen transfer refers to the moment when a consumer enters a shopping mall and, surrounded by an intentionally confusing layout, loses track of their original intentions. Spatial awareness of their surroundings plays a key role, as does the surrounding sound and music. The effect of the transfer is marked by a slower walking pace and glazed eyes.

The Gruen Identity looks beyond this scripted disorientation to the science, psychology & technology of marketing

Thursday, October 7, 2010

The Fragmentation of Television Audience Shares

So with the advent of more digital free-to-air television channels comes the inevitable fragmentation of audience shares, and whilst these emerging digital channels are still in their infancy, the trends speak for themselves…or do they?

The 2 leaders – Seven and Nine – will continue to dominate shares, at least for some time to come, as their programming has always appealed to the Australian masses. Ten, although constantly in the shadows of Seven & Nine, are masters of reality TV & will continue to leverage their strength. The Masterchef final episode earlier this year peaked at over 4.3 million viewers according to Mediacom Analytics…which is the highest rating program since Lleyton Hewitt played Marat Safin in the 2005 Australian Open Finals (4.04 Million).

So if the ‘Big 3’ still have so much relevance in the market, how is there room for more channels? It’s an obvious answer: Choice.

Programmes that were never before considered by broadcasters are now being reviewed & channels thus tailored to niche audiences. The key here for the new digital channels is to establish a channel identity, so as not to ‘target all & appeal to no-one’, and for the most part, we can clearly see these identities:
-          One: Dedicated Sports
-          GO!: Nostalgia
-          7Mate: Aussie Blokes
-          ABC2/3: Children
Not so clear are 7Two & 9GEM…but again, it’s early days.

Media buyers would already be trawling through viewership data of these digital channels so they can better manage ad spend (or so we assume). And we can only hope that this leads to more targeted, more effective, more relevant advertising to us, the consumer.

Tuesday, September 14, 2010

Advertising in the Digital Age

There's no denying the stats... by around 2013 online advertising expenditure will equal if not surpass that of television in Australia. Today, more time is spent by Australian consumers online than any other media format, and this share is continually growing.










(Media hours consumed per week)

This comes as no surprise as we see more & more devices providing online access...from computers & smart phones to gaming consoles & television sets, all now functioning at a multi-level. Another key driver of this is the proliferation of content available online, not just from traditional publishers but also from user generated content (such as social networking, blogs and user generated entertainment with the likes of YouTube).

There are currently:
  • 250+ million websites
  • 130+ million blogs
  • 30+ million photos a year uploaded onto Facebook
  • 1+ billion videos served on YouTube every day.

This is resulting in deeper & richer content and more engaged relationships with niche audience interests, as a consequent, brand and media owners are having to re-think their advertising models. Marketers are going to have to be extremely nimble over the coming years to keep up with digital developments and adapt to the new realities of advertising.

Change is the only real constant.

Traditional mass media formats are by no means out of touch. These media audiences continue to be invaluable to support mass products & services, to maintain brand health & awareness levels. Since the launch of the new digital TV channels 18 months ago we have gone from 4 free TV commercial channels to 15. These new channels are enabling marketers to achieve a more cost effective way to reach more niche audiences.

Traditional media publishers are also extending into the digital space & are notably some of the most popular content providers (news sites and catch up TV for example). This online presence is enabling advertisers to engage & interact with consumers and potentially increase their traditional platform audience. But be aware of the emergence & importance of Social Media & how it can play a role on brand health. 80% of all tweets are branded (i.e. a brand is mentioned). We should not try to control this territory, but rather guide overall sentiment through positive interaction with the consumer.

There are 2 questions that this all leads to as we look to the future: 
  • How do we measure online media audiences more effectively?
  • And how will this impact the way online space is monetized?

One thing is for sure, we'll see a revolution over the next few years as marketers, broadcasters & publishers work at providing extra value for consumers in the digital space and aim to become truly responsive to the demands of digital media users.