iAd -- Is $60M A Big Deal?

Most of the news this morning at WWDC was around iPhone 4 and iOS 4. Will leave the new device and platform play to my colleague Charles Golvin. I can't wait to get one of the new phones . . . very slick as it looks like a mini iPad in a modified format.

iAd . . . $60M committed for the second half of 2010. Initial advertisers include: AT&T, Best Buy, Campbell Soup Company, Chanel, Citi, DirecTV, GEICO, GE, JCPenney, Liberty Mutual Group, Nissan, Sears, State Farm, Target, Turner Broadcasting System, Unilever, and The Walt Disney Studios.

Pretty impressive. How do they get to $60M? Rumor is that the minimum buy-in is $1M, but it goes up from there. They claim to have 50% of mobile ad market share according to a J.P. Morgan study. I think it is a bold claim unless this is purely the media spend and doesn't include creative. Our number is comparable -- but without creative. Advertisers can count on the buzz surrounding iAd's launch on July 1. That alone may justify the initial buy. These initial advertisers are a smart bunch. A few million dollars isn't much to any one of them, but these are sizeable buys for mobile.

I think there are a lot of interesting questions to be answered. Many will be "wait and see," but here's my wishlist:

- What do I get for $1M+ in mobile advertising? Am I buying creative, development, ads, and analytics?

- How much targeting do I get?

- Is it performance-based? Or CPMs?

- What will work well on the i OS4 devices? Branding? Or, will the ads leverage context -- the context of how, where, and when I use these devices? Will the ads drive me to online purchases or into a nearby store to make a purchase?

- How much control do I get over where my ads are placed?

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The 2010 Forrester Groundswell Awards

I am pleased to announce that we've just kicked off the 2010 Forrester Groundswell Awards. We are now open to submissions detailing how you've put social media to work for your company. This is the fourth running of the awards (and my third year helping judge and organize the entries), and I am truly excited to see the state of the industry as it continues to mature.

This year I'm specifically looking forward to reviewing the "Listening" category entries. There are a lot of businesses out there that listen to social media, but how many of them achieve Social Intelligence and truly use "listening" to inform their business decisions and drive better marketing? If you can prove the business value of your listening initiatives, please submit your entry for either the B2B or B2C Listening categories.

Last year's B2C Listening winner, NASCAR's Fan Council, used an online community for market research. It conducted three times its planned research goals at 80% less cost -- and discovered insights from fan discussion to change NASCAR rules to include a double-file restart (disclaimer: I don't fully understand NASCAR rules and cannot explain what a "double-file restart" means, but was still impressed that it changed the official rules based on insights from tits customers) and in turn improved overall brand sentiment. NASCAR actually listened to its fans, acted on the insight, and generated real business results -- a real Forrester Groundswell Award winning case.

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When Proactive Chat Goes Wrong

Well-implemented proactive chat can offer compelling business benefits: increasing sales, reducing call center costs, improving customer satisfaction. Proactive chat availability is growing. But many companies continue to stumble in their implementation, compromising their ability to achieve these benefits.

I’ve recently had two unsatisfying chat experiences that are not unusual:

In the first instance, I was having trouble logging into my account when a proactive chat box appeared asking if I needed help. The offer of assistance began to ease my rising blood pressure. After requiring me to complete queuing questions including my zip code and the product I was inquiring about, I was told that chat couldn’t help me and directed to the 1-800 line.  Clearly the rules to trigger a chat invitation following repeatedly unsuccessful attempts to log in were misplaced. My blood pressure returned to its upwards trajectory.

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Announcing The Forrester International Groundswell Awards

I'm thrilled to announce that this year Forrester will present the first-ever Forrester International Groundswell Awards! The Forrester Groundswell Awards are our effort to recognize not just the best ideas in social media marketing, but the programs that have proven the most effective at generating results for marketers. In the past we've run a single set of awards for all business-to-consumer marketers, no matter where in the world they were based -- and we've always been excited to see and reward great social media programs from outside the US. This year, with companies around the world ramping up their use of social media marketing -- and with many of them doing outstanding work -- we decided it was time to create a special category for non-North American marketers.

If you've run a great consumer-focused social media marketing program in the past year -- and if your program didn't specifically target the US or Canada -- then we'd love to see your entry for the Forrester International Groundswell Awards. The entry deadline is August 27, 2010 (get your entries in early so you can generate audience votes!) and we'll present the awards at our EMEA Marketing and Strategy Forum in London on November 18, 2010. Be sure to check out Josh's post for full details and rules. I'm looking forward to seeing your submissions!

Forrester Consumer Product Strategy Podcast Episode 3

Click on the video below to view the latest episode in our podcast series "Find Your Popcorn." In this episode, CPS analyst James McQuivey answers the question "Will consumers ever pay for content again?"

Let us know your thoughts. Do you agree? Do you think consumers will ever pay for content again? Is charging for access to content the answer? Or is the fight against free unwinnable? (The registration process for commenting is now quick and easy.)

What Role Should Agencies Play In Social Media Marketing?

With social media getting so much attention in the industry, it's not surprising that there's been a massive land grab by agencies of all shapes and sizes. Agencies recognize the tranformative nature of social technologies and with nearly $1 billion in social media budgets already forecasted for 2010, it's no surprise that agencies are trying to get a jump on the expertise. This creates a lot of confusion for interactive marketers. So much so that a few agency folks actually got together recently to write a joint blog post to point out how they differ ("co-opetition"). Yet each type of agency comes at social media with a distinct strong suit. For instance:

  • PR agencies tend to be stronger in working with earned media -- specifically working with influentials.
  • Interactive agencies tend to be better at building out owned media (like communities and social net pages), have expertise in technology, and understand things like the relationship between social media and search marketing.
  • Traditional creative agencies and media planning/buying agencies tend to focus on how social media fits into paid media campaigns (i.e., advertising) because, well, that's been the focus of their business for the last century.
  • Other new agencies like WOM specialists and even a new set of social agencies (e.g., Powered, Converseon, Digital Influence Group) are popping up, but they're still mostly nascent and don't dominate the space.

 

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What's The Future Of Application Stores?

At the beginning of this year, we stated that application stores would continue to flourish, but none would replicate Apple's success in 2010. So far, it has been quite easy not to be proven wrong on this one. Android Market and, to a lesser extent, RIM's BlackBerry App World are growing fast in the US, while Nokia's OVI is performing quite well in some regions. Windows Marketplace is likely to benefit from end-of-year Windows 7 sales, while Samsung Apps are not yet really marketed, not to mention LG's efforts. The Wholesale Applications Community (the operators' alliance) has not yet launched. Global operators have yet to significantly launch their own multiplatform stores. Both approaches (the vertically integrated from handset manufacturers/OS players and the horizontal layer added by operators) are likely to continue to expand this year, making it even more complex for brands and companies launching their own applications. Many of them are starting to realize that there is a world outside of Apple's iPhone and that their app will be lost in a back catalog of more than 200,000 apps if they don't market it. They are starting to wonder how to break the Apple App Store ranking algorithm, how much to invest in the life cycle of their application, and which stores they should target to distribute their products and services. I see a couple of key issues that need to be tackled to seriously address this market opportunity:

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Returning To Forrester

I’m delighted to return to Forrester and its Customer Experience team after eight years of running my own business and technology strategy consulting practice.  

I’m returning to the same group in which I worked before with Harley Manning and his team. It was in that group that I helped develop and implement Forrester’s Web Site Usability methodology, wrote reports like “Must Search Stink?” and “Smart Personalization,” promoted the use of customer data intelligence and CRM systems to drive proactive interactions that I called “Tier Zero Customer Service,” and reported on the uses of early community-based tools for customer service (today it's "social CRM").

A frequent question that I've been asked in the scores of phone calls over the past several weeks since my return has been: What are you going to cover? The short term answer is primarily four topic areas: 

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The Theme Of The Week: Getting Social

It’s been a busy couple of days between talking to clients about my views on social market research, getting comments on the blog and through Twitter about listening, and delivering a teleconference on the topics as well. All in all, it’s been good affirmation that this is an area worth spending some time exploring even further.

To close out the week on this theme, I’d like to direct you to a podcast interview I did with a publication called Research in the UK.  It highlights the three main trends I’m seeing with regard to using social tools in market research, and it speaks to some of the points I raised this week around the interest in and challenges around using listening technologies.

This is a publication that I recommend market researchers follow in general. It’s a good resource for keeping up with market research news on both sides of the pond, and there are always a variety of compelling opinion columns on the current and future state of the industry.

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The Data Digest: How Choosing A Financial Company Differs By Age

What matters to financial buyers depends on who they are and what they are buying. Our Technographics data shows that European customers with different profiles — for example, different sociodemographic or attitudinal profiles — care about different things when selecting financial services firms.

Influencing factors by age

The report 'Why Europeans Choose Financial Firms' also shows that the influence of word of mouth on a customer's decision to select a financial services firm declines sharply with age. A striking 37% of customers ages 16 to 24 and 18% of customers ages 25 to 34 were influenced by their friends' or family's recommendations. On the other hand, nearly half of European financial buyers ages 65 or older chose a company for their most recent financial purchase partly because they already had a product or account there.