Why Usage-Based Car Insurers Need Don Draper

Ellen Carney

Don’t you hate when a company advertises a product but fails to make it easy to find and buy?

Mad Men’s Don Draper, who, in the 1960’s could have been as likely to work in insurance as advertising (but the story would have been not nearly so interesting), would have a field day with the findings from Forrester’s just published report, “The Next Act For Usage-Based Car Insurance”, the first in a four-report series addressing the UBI landscape in the US, Canada,and Europe and the future of UBI. 

Smart devices, smartphones, and smart cars are converging to create what should be a smart insurance choice for safe drivers and their insurers. The report examines American consumer interest and adoption of usage-based car insurance and the obstacles to purchase, many of which point directly to insurance eBusiness failings.

When Forrester last looked at the UBI market in 2008 (then termed “Pay As You Drive” or PAYD), consumers couldn’t get it because of a big distribution problem:  It was offered by few insurers in just a few states.  A couple of months ago, we decided to see just what had changed over the past five or so years when it came to consumer interest and purchase.  What did we learn?

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FT Digital Media: Anguish Over Products

Ryan Skinner

Two ways media’s changing now, and two ways it’s going to change:

The FT Digital event in London last week pulled together some of the cream of the European media world. The big conclusion they were made privy to?

The media world will soon discover exactly how many ways you can skin a cat.

The old-fashioned way for media brands to skin a cat – make the content and license rights to distribute it, or advertise next to it – doesn’t work anymore as a standalone product. As a result, the business model experimentation we’ve seen so far in the media world is turning into business model explosion. Evidence: Half of the speakers and attendees at this media event wouldn’t have been at a media event at all only three or four years ago. Facebook. Shazam. BuzzFeed. And tech VCs, for example.

Two pieces of news exemplified changes taking place right now:
One, Facebook’s acquisition of Oculus (a virtual reality gaming device) forced discussion toward the value of a platform – the device is only as valuable as the community of developers creating remarkable content for it; tech and media companies alike need to take a platform approach to their assets.

Second, The New York Times’ launching of NYT Now – a premium version of the Times exclusively for smartphones – showed how media companies are bending themselves backward to divorce (call it “conscious uncoupling” if you will) resources from revenue. The mobile app will take a Facebook-like approach to making money by allowing advertisers to publish sponsored content in-feed.

And two discussions painted a picture of media’s future:

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Seven Steps To A Needs-Based Marketing Strategy

Anthony Mullen

Brands deals with human needs and wants. Leo Burnett, the advertising executive, said: "The work of an advertising agency is warmly and immediately human. It deals with human needs, wants, dreams, and hopes." Smart brands know not to initially focus on what they have to sell but rather on how it meets consumers' needs. If you can address a strong consumer need, you will get those consumers to act. If you can get them to act, then you have opened an all-important channel of dialogue.

The fulfillment of consumer needs, however, is not always a linear hierarchic approach as proposed by Maslow and effectively debunked by Forrester analyst James McQuivey in his book Digital Disruption. Human needs take place simultaneously and are fuelled by a mix of short- and long-term motivations — some conscious and some unconscious. As a student, I would sometimes forgo food on a Friday so I could afford to go to a concert that night; or consider a Spanish couple postponing the short-term comfort of a much-needed upgrade to their central heating so they can put their child through the next year of college. 

The pyramid diagram below shows how the foundation of this needs-based thinking is built from the ground up, from customer descriptions through to the technology and KPIs applied.

 

 

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East Meets West And Traditional vs. Digital — How a Publisher in Turkey Views In-Stream Audio Advertising

Anthony Mullen

While I was undertaking my research for in-stream audio, one interview couldn’t be scheduled in time before the cut-off date for editing. It was with a company called Spectrum Medya, which launched Karnaval.com, a digital radio platform, about a year and a half ago. Spectrum is based in Istanbul – the intersection of where the East meets the West — and in many ways, it's charting where traditional radio meets digital audio. Karnaval has a hugely popular Internet radio stream and was recently selected by Wired Magazine UK as one of the 100 hottest startups in Europe.

I’ve included a transcript of my interview with Ali A. Abhary, Spectrum's CEO (Twitter: @alitalks), below for you to see how a publisher is handling and viewing these changes in the audio ecosystem.

 

Q. Tell me about your service.

A. Spectrum Medya is owned by private equity fund the Actera Group, which joined two and a half years ago. At the time, the Spectrum consisted of five terrestrial radio station networks across 20 to 30 different cities in the country. Turkey had state-owned broadcasting until the '90s, until deregulation, which is when we got chance to really steer two of the oldest radio stations in Turkey under our own control.

Q. How was the ad business for traditional radio before digital?

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Avoid The Visual Clutter And Go For In-Stream Audio Advertising

Anthony Mullen

David Bowie photographIn 2002, the zeitgeist orchestrator David Bowie  opined, “Music itself is going to become like running water or electricity.” A few years later, in 2005, the futurists Gerd Leonhard and Dave Kusek proposed “music as water” in their industry-shaking book, The Future of Music (A Manifesto for the Digital Music Revolution).

The metaphor was simple — music would flow on demand, like a utility, to people's home hi-fis and portable music players. Subscription access to "all" music was the approach that ultimately ended up with no more ownership of physical or even digital copies; CDs, mp3s, and the other ground-bound trinkets would no longer be necessary. Even in my own behavior, I see this change — where once I’d spend time ripping my CDs and loading up my 160GB iPod, now I simply curate music, like my Boxing playlist, in the cloud via Spotify.

Eleven years later, Bowie’s prediction is coming true and streaming is progressing at speed. In metropolitan Argentina 1 in 3 consumers are listening to streaming music - evenly split between mobile and computers (desktop, laptop, tablet). In France 15% of those we surveyed streamed on a computer but a whopping 27% used mobile. In fact this trend to streaming via mobile is likely to be one that will continue worldwide and today in metropolitan regions of Hong Kong and Mexico, as well as South Korea mobile has already considerably overtaken computers as the preferred listening method.

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2012 Super Bowl Heralds Change In Video And TV Marketing Strategy

Tracy Stokes

NBC recently announced that it would be streaming its coverage of the 2012 NFL Super Bowl online. NBC has streamed big events before (2010 Olympics, Sunday Night Football), but the big difference here is that it is selling video ads that will run exclusively on the online stream independently of the TV broadcast. This is a huge step for NBC as an ad seller since it is recognizing its untapped online audience and attempting to monetize it. Although the Super Bowl streams (restricted to the US only) are expected to greatly pale in comparison to linear TV viewership, Forrester expects the streaming audience of the Super Bowl to grow dramatically in years to come.

2011 has seen some major change in advertising. Although TV is still king, there’s no denying that online video, across a wide variety of devices, is experiencing strong growth. TV advertisers must now contend with smartphones, computers, and tablets as alternative sources of premium video content for engaging viewers with targeted ads. 

As media fragmentation increases, marketers will need to rethink their strategies and start to look at online video and TV as two sides of the same coin. In our latest report, “Why Marketers Must Integrate TV And Video Strategies” (subscription required), we make the case that marketers will merge their online video and TV advertising teams to more efficiently reach their audience across whatever screen they happen to be watching. Next month, our VP Practice Leader, David Cooperstein, will be speaking at the ANA TV & Everything Video Forum in New York about how marketers’ attitudes and strategies are shifting in the face of this new media convergence.

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Jay-Z Decodes The Future Of Digital Out-Of-Home

Tracy Stokes

For the 2010 launch of his autobiography Decoded, hip-hop mogul Jay-Z ran a teaser campaign with Bing that released one page of the book per day on out-of-home signage; people across the US tried to decode the pages from buildings, pools, and clothing racks. Jay-Z is one of many marketers giving the once-stagnant out-of-home channel an infusion of digital and creative innovation. Place-based networks, digital signage, digital billboards, and hybrid installations offer an array of options for marketing leaders to consider as they try to reach on-the-go consumers. This reinvigorated medium offers marketers greater relevance, engagement, and interaction. It grabs consumers with content at the right time in the right place — when they are about to make a purchase decision — and offers the immediacy of instant gratification or information through smartphone-enabled technology.  

To get a picture of this new media landscape and to find out more about how leading marketers have begun to use digital out-of-home, check out my new report, “Digital Remakes Out-Of-Home Advertising."

What do you see in the future for digital out-of-home? Are you ready to get outside?    

Thanks!

Google eBooks Paves The Way For Ad-Supported Publishing

James McQuivey

Brace for impact. What I'm about to say is going to make a lot of people angry, including some of the people at Google who are going to rightly point out that when they pre-briefed me on today's Google eBooks announcement, we never once discussed ad-supported reading.

Instead, they told me all about their plan to establish a set of tools that will offer eBooks to people looking for book information through Google's search engine. They explained that this will make it possible for the millions of people who conduct book-related searches every day to have easy access to 3 million books -- some out of copyright, some out of print but under copyright, and a full range of in-print titles including bestsellers. They also described how independent booksellers will be able to use the same set of web-based commerce and reading tools to build their own branded eBook stores to finally extend their brick-and-mortar customer relationships into the digital space.

Since then, I've spoken to half a dozen reporters who were also pre-briefed and they have all had a similar set of questions: can Google compete against Amazon (no, but it can compete against Barnes & Noble), is it too late to make a dent in a mature market (no, less than 10% of online adults in the US read eBooks, there's plenty of room to grow), is Google's cloud-based strategy unique (yes and no, it supports all devices except the Kindle, but the Kindle platform actually supports as many devices as Google will). 

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Unlock The Value Of Your Data With Azure DataMarket

James Staten

If the next eBay blasts onto the scene but no one sees it happen, does it make a sound? Bob Muglia, in his keynote yesterday at the Microsoft Professional Developers Conference, announced a slew of enhancements for the Windows Azure cloud platform but glossed over a new feature that may turn out to be more valuable to your business than the entire platform-as-a-service (PaaS) market. That feature (so poorly positioned as an “aisle” in the Windows Azure Marketplace) is Azure DataMarket, the former Project Dallas. The basics of this offering are pretty underwhelming – it’s a place where data sets can be stored and accessed, much like Public Data Sets on Amazon Web Services and those hosted by Google labs. But what makes Microsoft’s offering different is the mechanisms around these data sets that make access and monetization far easier.

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Adobe On Its Way To Being A Role Model For Interactive Marketers

Shar VanBoskirk

I just had a one on one with Adobe CMO, Ann Lewnes, a power house of interactive marketing energy for the combined Adobe/Omniture companies.

In her words, "Adobe's goal is to be the site role model of what the combined Adobe/Omniture suite of products can bring to any marketer's site."

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