Friday, January 20, 2012 | Edited by Daniel Moores
||What CES Means to Radio Salespeople and Managers
There has been plenty of coverage of the 2012 International CES. The new product announcements, celebrity appearances, and awards for "Best in the World" at the Consumer Electronics Show captured the attention of consumers.
There were three important aspects salespeople and managers can learn from the recent Show.
New Devices Mean New Ad Products
- New innovations in devices and connectivity change the nature of the advertising products you sell.
- Marketers and advertisers are looking for new ways to reach customers.
- Digital gadgets can help you do your job better.
In only five years of existence, think what the iPhone has done to make mobile a viable advertising medium.
Technological innovations are creating new content platforms that open up new marketing and advertising opportunities. Each of these new opportunities changes the landscape for all existing media.
Many stations are embracing the new advertising platforms and from what we saw at CES, we need to be ready to develop and sell even more media...and quickly.
Everywhere you turned at CES you saw accessories for iPhones and iPads: phone and tablet covers, keyboards, car mounts, desk stands, floor stands, wall mounts, cup holders, kiosk display mounts, HDMI docks, and video projectors. There were robots, large and small, with iPhone docks to control the robot, play your music library or stream, and snap photos. There were iPhone and iPad connections to exercise equipment, medical equipment, gaming consoles, easy chairs, cameras, camera lenses, tripods, and movie making equipment.
Of most interest to us in radio, there was a preponderance of audio systems for home, car and on-the-go with digital connections.
The latest audio systems are including iPod/iPhone/iPad connections, Bluetooth connectivity, Ethernet, Internet-only radio streaming, Cloud streaming, satellite, and USB. The new devices sometimes include an FM tuner. Almost none include AM. To find a radio with an AM tuner, you had to look to old U.S. companies like RCA, Sylvania or Phillips. Radio's efforts to move more toward digital must accelerate from the look of the future audio devices that will be available.
There were some bright spots for radio. Blackberry announced it has an FM chip in two smartphones, and Nokia, using the Windows operating system in its mobile phones, is including an FM receiver. Our challenges will be to get the listener to listen to our stations amidst the many audio choices, and to create an advertising product that takes advantage of the audio, video, visual, and connected capability of mobile phones and other devices.
Connectivity Changes Everything
Connectivity was a central theme throughout many of the keynotes and presentations. Devices are coming together in two ways: 1) A convergence of technology, like in a Smart TV where you can watch broadcast TV, cable, DVR, satellite, NetFlix, YouTube, or any other Internet video; and 2) Mobile capability over cellular to connect almost anything, anywhere.
Cellular networks are rapidly expanding. All major cellular companies had a strong presence at CES. The CEOs of AT&T and Verizon participated in keynote presentations. With 3G and now 4G connectivity available in smaller and smaller cellular chipsets, almost anything can be connected to the Internet. Beyond the obvious mobile phones and tablets, we saw examples of connected automobiles, cameras, home security systems, medical devices, refrigerators, washer/dryers, shopping list tablets, furnaces, and dozens of commercial applications for everything from trucking and inventory control to stand-alone kiosks and Digital Out of Home (DOOH) advertising displays.
Qualcomm, the world's largest provider of wireless chipset and software technology, showed its new Snapdragon processor. It is designed for better battery life, faster processing speed, enhanced multi-media experiences (including 3D video), and multi-tasking of phone, texting, streaming, and other apps. This new wave of processors will open up more mobile devices.
Advertising sales opportunities will expand. You can take part by using the creative abilities that have driven radio over the years.
Marketers Are Looking For the Next Opportunities
CES attracts CEOs, CMOs, brand managers, and advertisers. They are looking for what could be the next breakthrough media for them to deliver their messages to consumers. Some of the top brands in the world spent time at the Show: Unilever, Ford, Coca-Cola, Walmart, Procter & Gamble, Sony, Microsoft, Hyundai, AT&T. In total, CES estimated 500 marketing and advertising executives attended. More than 5,000 attendees listed "advertising and marketing" in their registration information according to Ad Age.
Few marketers attended the Show until recently. Now they are not only looking for what is next, but they are using CES as an opportunity to meet with some of what are quickly becoming "traditional" media: Google, Facebook, Yahoo, and AOL.
Digital Gadgets with a Salesperson In Mind
Cell phones, voicemail, and email changed the way salespeople operate. The newest wave of gadgets like smartphones, tablets, and ultra light laptops bring more change.
These mobile devices allow us to make more impactful presentations, keep CRM tools at hand wherever we are, and stay in touch with clients and the office.
The number of iPhone and iPad accessories at CES was staggering. Portable power packs are extending the up-time of any device when away from electricity. Bluetooth keyboards are making data entry into phones and tablets easier.
Laptops are coming that have two displays in the lid, one facing each direction so you and your client can both see a screen. Portable video projectors, battery-powered and small enough to fit in your shirt pocket, can display your presentation from an iPhone, iPad, laptop, Android phone, and even an SD card.
Portable amplified speakers can play audio of your station demo or a spec spot from your mobile phone or tablet...and again are small enough to carry in your pocket. Many have power enough to fill a client's office with quality sound.
Digital salespeople use electronic devices to demonstrate their advertising products during client presentations. Advertising agencies and clients have come to expect presentations that show the advertising product. Bringing in a paper presentation is not enough. Create a custom PowerPoint presentation, include audio and video, include photo images of your station events, and use a live demonstration of your website with WiFi or cellular connections in your laptop or tablet. CES clearly pointed out the tools that are available to you.
My Personal Shopping List from CES
It is a good thing exhibitors are not permitted to sell at the show. I could have spent thousands of dollars. But as time passes and I become more rational, there are still several new gadgets I intend to purchase.
WOWee Pocket-Sized Wireless Speaker -- It uses Bluetooth technology to allow connection with smartphones, tablets and laptops. Audio quality is excellent and the gel bottom temporarily adheres to any flat surface for a louder listening experience. It has a built-in mic for hands-free applications and 40Hz to 20k Hz bass sound range. It weighs under 5 ounces. The internal battery provides up to 10 hours of play-time. It can be recharged using a standard USB cable. The WOWee One Pro will retail for $149.99 and is scheduled to be available in stores and online in late March 2012.
Zaggkeys FLEX -- This is a thin, lightweight, and compact portable tablet keyboard. It comes with a cover that coverts into a stand to prop up any tablet or smartphone. Street price is $80.
3M Pocket Projector MP180 -- This small, battery-powered projector was designed with the on-the-go professional in mind. You can truly leave the laptop at home with this portable office, which allows you to share Power Point presentations, files, photos, and MS-Office files including Word documents and XLS spreadsheets. With a full, two-hour battery life at 30 lumens, full-color gamut and SVGA resolution, the 3M Pocket Projector MP180 produces a sharp, vivid display and battery length to get you through any presentation. New features include wireless and Bluetooth compatibility, making it easy to transfer files from laptop or PDF or stream content from the Internet. The Pocket Projector MP180 has 4GB of built-in memory, as well as a micro SD card for additional storage. Street price $400.
(Source: John Potter, VP/Training, RAB)
||Digital to Get Bigger Slice of Ad Budget Pie
With more people turning to online and digital sources for their entertainment and information, marketers will be investing more in the digital space on brand-building (as opposed to direct-response) advertising in the coming year.
In 2012, 60% of marketers' digital advertising budgets will be devoted to online branding, according to a survey conducted by ad tech company Vizu. It found that 64% of markets will increase their online brand advertising budgets, with more than a fifth saying they planned to increase them by 20%. (Comparatively, only 56% of marketers said they planned to increase their online direct-response budgets.) Similarly, 60% said they were re-allocating dollars away from direct-response and into brand initiatives.
"Brand advertising is becoming a bigger and bigger part of the digital experience," Jeff Smith, chief marketing officer at Vizu, tells Marketing Daily.
Smith gave three reasons for the increases. First, more consumers are migrating online. Whereas 10 years ago, digital initiatives were a key way to reach younger consumers, the medium is more widely used by many age demographics.
"It's no longer this selective channel to reach younger people," he says. "It's an imperative to reach the target audience in total."
Second, many marketers are being asked about their "social media strategies," which is based in digital marketing.
"Social in itself is just another tactic, but it's taken on a life of its own," Smith says. "Whether or not they thought about social, their organization is asking them about social."
Finally, Smith says, the space offers better measurement than many previous brand advertising channels. This third factor, however, also comes with a downside. According to the survey, a third of marketers felt they were "drowning in data" when it came to online advertising, leading to what the company called a "metrics morass."
The solution, according to Smith, is to be clear about a campaign’s objectives and measurement before launch.
"What too often happens is the brands don't set that objective up front and they don't define the metric that's going to be measuring (the campaign)," he says. "(As a result), they get agencies reporting back any data they have."
Marketers, Smith suggests, need to set their goals and define the information they want reported back to them, and then ensure that all of their agencies (creative, media, digital, database, etc.) are on the same page and speaking the same language at the outset.
"It's really important regardless of what aspect of the campaign it is -- to get everyone on the same page, looking at the same data and using the same language," he says.
(Source: Marketing Daily, 01/09/12)
||Study: More Regional Ad Agencies Budget for Digital Specialists
The following article was written by Jay Friedman, chief operations officer of Goodway Group, and appeared in the January 17 edition of Ad Age Agency News.
This month we published the results of a study detailing the state of "going digital" within regional agencies around the U.S. The study asked 12 questions and was answered by 90 agencies, up from 74 in 2010.
The fact that we have two years of comparative data also allows us to see how the mindset around core digital-media needs has shifted year over year. Some results are expected, but many are truly astounding. What's more interesting is different people will find the results astounding for different, and sometimes opposite, reasons.
Responses to each of the 12 questions are fascinating, but I've chosen three of the questions to highlight here with the hope you'll read the full study as well.
In 2010, 26% of agencies said clients "weren't asking for" digital media. That dropped to 4% this year as it appears marketers who felt this way a year ago may have realized digital is a requirement, not an option. The fact that "budgeting to hire and train a new staff member" shot from 14% to 51% from 2010 to 2011 shows us regional agencies now have realized that digital media may be so complex that existing staff with different backgrounds and expertise will not naturally become digital-media experts. Or it could be the costs of learning on the job are too great.
We predict the major "aha!" in 2012 will be that budgeting to hire just one staff member will not be enough. Social content, web development, analytics, SEM and display are all significantly different subspecialties within digital. Still, most agencies do not have the budget or need to hire full-timers in each of these areas.
If you ask people who have been working in display (online, mobile, video) for a while about the notion of click-thru-rates as a metric of success, they will most likely scoff at it.
Real ROI, effective cost per action, and brand lift are often considered more meaningful metrics for success. Forty-eight percent of those surveyed view CTR as the primary metric for success while another 20% view CPM. This data shows that regional agencies are still in the introductory learning stage of digital media.
If you're a digital veteran, you may remember working on your first several campaigns and eyeing the CTR as the campaigns progressed. You may have gotten excited about a rising CTR only to feel a bit empty when a campaign finished: "Great, we got lots of clicks, but does that really mean we succeeded?"
Since many agencies (and likely their clients) are focusing on CTR and CPM to define success, it's not surprising how the next question plays out, "How successful would you rate your past digital campaigns?" Only 2% of regional agencies rated their past campaigns as "very successful" because they and their clients have not established healthy metrics for campaign success.
This study culminates with the final question, "In terms of agency business priorities, where would you say 'going digital' falls?" Last year, 71% answered it was either their top priority or one of the top few. This year 59% said, "We'd like to, but we're not in a hurry." What happened?
We believe this de-prioritization is the result of the combined experiences and lessons from the areas we've described above. This is especially true because in the beginning we all thought, "It's just another medium. It can't be that different." This obviously has not proven out.
Programmatic digital buying and the expertise needed around it are a world apart from the spots and dots of traditional media. These inaccurate expectations combined with the challenges of campaign metrics could certainly lead agency owners and top executives to rethink speeding headfirst into their next digital project.
Having spoken with hundreds of regional agencies across the country, one thing I can definitively say is these agency owners and top executives are incredibly smart and will figure this out in short order. But like any new subject, having a great teacher can be the best path. As regional agencies lean on vendors and other industry experts, we expect to see a hockey-stick-like understanding of digital and how it fits into the entire media picture.
(Source: Jay Friedman, Advertising Age, 01/17/12. The full study is available here.)
How You Can Make Money: Recommend Integrated Media
It is surprising to us that within the full research report on page 8, 34% of agencies reported their past digital campaigns were not successful. Perhaps a combination of digital and radio would move more agencies into the successful columns. Large agencies may know more than regional agencies that Integrated media are the best solutions. RAB will be presenting several sessions at the NAB Show, including one specifically on increasing revenue through Integrated Marketing. The NAB Show in Las Vegas is April 14–19, 2012. Register at www.nabshow.com.
Daily Sales Tip: Reinvest In Your Career
Many devices shown last week at CES are powerful tools radio salespeople can use to close more business. Mobile devices are plentiful, relatively inexpensive and serve multiple purposes. They can help you with customer relationship management, client communication, and client presentations.
If you do not own these devices, consider a smartphone, tablet and laptop. Make sure you own a portable, battery-powered speaker to play audio for clients from your devices. A nice touch in presentations is a battery- powered portable video projector to show your presentations in large format.
Digital salespeople are demonstrating what they are selling when presenting to advertisers and agencies. Handing a client a written proposal or one-sheet is no longer enough to keep up, let alone get ahead of the competition.
Source: John Potter, VP/Training, RAB