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Only 15 per cent of ads will be affected by this phenomenon in
2007. The TiVo Nielsen Custom Panel conducted a study recently.
The fact is that 80 per cent of people will watch TV live. Even
those that watch on time shift will do so only for certain shows
like the West Wing. News and sports broadcasts will be watched live.
Around 10 per cent will skip ads completely. A part of this segment
is content hoarders. These viewers will store content like films
that will be viewed over the weekend. The catch-up soon segment
that will be ten per cent will skip 50 per cent of the ads.
An alternative mechanism for advertisers is embedded ads in film
and TV. For instance in Austin Powers when Myers says, "Get
your hands off my Heinie" he is referring to Heineken beer.
The embedded ad market in the US will be worth $2 billion this year.
This will grow to $3 billion in 2007. While reality shows like
American Idol and Extreme Makeover draw a lion's share of this revenue
other drama shows and sitcoms will also feature companies embedding
products into the storylines in the next couple of years. Coke,
Pepsi and Nike are some companies doing a lot of product placement
in TV and film.
Sports sponsorship is also huge in the US. It attracts $ 8 billion
a year. Gaming is an emerging opportunity. It will be worth $ 7
billion in 2007. What is good is that a Nielsen survey found that
most customers do not mind in-game advertising. In fact it makes
the experience more real for them. Seventy five per cent of Nielsen's
male TV homes own a video game system. Those that play do so for
as long as eight hours at a stretch. So their consumption is beginning
to rival what is happening in the main media.
Nielsen is now working on a new marketing information service called
Apollo. Here an integrated study is done of all the media being
consumed. This will help Nielsen gives its clients a better idea
of the best media mix for their products. Garland is confident that
with technological advancement this service will grow in utility.
Project Apollo will aggregate a 'day in the life' of thousands of
consumers.
Marketers would have the opportunity to get a read on when and
where key consumer segments receive product messages, how they process
and filter that information, and the impact on the ultimate purchase
decision. The service will measure the gap between seeing an ad
and making a purchase. It will also be able to gauge how often a
person sees an ad before deciding to buy a product.
What Apollo seeks to answer is one of the biggest questions facing
American marketers today-the relative effectiveness of their spend.
With more than $1,012.6 billion in US marketing expenditures on
the table, the issue becomes one of weight and allocation. Are companies
spending too much or too little?
Meanwhile, IBM Global Media and entertainment industry VP Steve
Canepa dwelt on the importance of digital networks in helping content
owners discover new revenue sources. The fact is that in 2004, 80
per cent of US consumer spent money on digital media compared with
37 per cent in 1998. He mentioned that developing standards would
lead to the creation of new business models in a digital age. The
IBM digital media factory works at developing an integrated digital
media value chain. According to him firms that integrate business
delivery systems with content systems will emerge as winners.
For content management IBM has a digital media centre. This can
send 20 gigabytes per second. It has worked with CNN towards digitising
its archive and assets. This was done by using an open standards
database technology. IBM is also working with a Korean radio station
to achieve a tapeless workflow that links editing suites.
"This will deliver significant cost savings. We are also working
with the National Football League in the US to help them deliver
a more enriching experience for the fans. Movielink is an example
of a new business model. The company uses broadband IP to licence
and deliver movies over the Net. We manage their infrastructure.
As far as Consumers' homes are concerned what is required are new
home architectures. We are coming out with HD DVDs. This will allow
consumers to record and play back HDTV content."
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