The competitive challenge that companies face today is driven by new issues that transcend classic distribution, brand, and product challenges. In the world we live in today, which Forrester defines as the Age of the Customer, firms need to look at how they deliver marketing and technology solutions that have visible impact on the customer.
Just the other day I was reminded of that when, sitting with a client, he described their competitive threat as coming from software products. That would be normal were it a tech company, but this was an airline! Yes, an airline that required technology and marketing to come together to define a customer experience that would differentiate them beyond seat configuration and route system. This highlighted to me the challenge that many companies face in this new era of disruption (for another view of how to think about this product challenge, see my colleague James McQuivey's recent report "Innovating the Adjacent Possible").
Charles Rutstein, Forrester's COO, sat down with my CIO Practice Leader peer Sharyn Leaver and me to discuss the role that CIOs and CMOs play in this customer-obsessed new world. See what we had to say here:
Although it is true that TV gets the lion’s share of marketers’ budgets, that doesn’t necessarily mean that online measurement should be retrofitted to make “apples to apples” comparisons. On the contrary, marketers are becoming more accustomed to the granular level of metrics and accountability online media offers and will not be content to keep TV GRPs and get a “best fit” measurement of GRPs online. Even if the industry isn’t giving up on GRPs as TV currency, TV networks like CBS are moving away from GRPs as the standard and would like to get beyond age and sex if possible. As the online video market matures and over-the-top video consumption grows, I believe marketers will begin to see the discrepancy in accuracy between the ads they buy on a prime-time show on broadcast and the ads they buy that are delivered via a YouTube, Netflix, or Hulu app on a connected TV.
Our Researcher Mike Glantz has been tracking the changes in TV media buying for us. Here are some thoughts from him on a new announcement from Nielsen and Kantar:
Although TV controls the lion’s share of the budget for most marketers, it has rarely been the most innovative or accountable medium. However, as TV becomes more fragmented and has to compete with digital, mobile, and over-the-top (OTT) video for viewers’ attention, marketers will need more granular data sets that allow them to track viewers across multiple platforms. In our Q4 2010 report “TV’s Currency Conversion” we made the call that set-top-box (STB) data will emerge as a parallel data currency with Nielsen for TV marketers. STB data allows marketers to accurately measure audiences across the tiniest cable networks, measure second-by-second commercial data, and compare audiences across TV and digital. We argued that STB data adoption would start with local marketers, since local marketers: