Gross rating points (GRPs) have been debated in the digital world for years — census level impressions should crush a panel-based measurement like GRPs — until you run into the raft of pesky technical issues: bots, viewability, server-side versus client-side measurement, et al. Meanwhile, the big money (i.e., TV) continues to be traded on GRPs, and with the advent of Nielsen OCR and comScore VCE, it appeared that digital was ready to throw in the towel and trade on GRPs, at least for online video.
But the story doesn't end there. GRPs, being a panel-based metric, have become more and more vulnerable as audience fragmentation decreases the number of viewers for any individual show: first small local broadcast markets, then low-rated cable networks, and now the general decline in audience size across the TV spectrum. This leaves a lot of audience unmeasured by Nielsen but still with intrinsic value to the advertiser, if only you could find another "currency."
MAGNAGlobal's most recent Media Economy Report takes one of the most direct stabs into the heart of this venerable metric, as reported in this Mediapost article: MAGNA calls for shifting to impression-based trading for local TV ad inventory.
I believe this is a harbinger of the end of GRPs. As I said in my April 2013 report Digital Disruption Rattles the TV Ad Market, disruption won't likely be a sudden, massive event but will begin at the margins in areas like spot advertising, which are smaller dollars and thus less risk to the advertiser's campaign results if a new technique isn't successful.
Despite a recent lackluster earnings call, there’s a bright spot on the horizon for Yahoo CEO Marissa Mayer. Forrester’s latest TRUE brand compass research shows a reservoir of consumer goodwill for the struggling brand.
In August 2013, Forrester conducted Consumer Technographics® research with 4,551 US online adults to uncover the drivers of a successful 21st-century media brand. This research is part of Forrester’s TRUE brand compass framework, designed to identify which brands are winning the battle for consumer mindshare and to help marketers build a brand that is trusted, remarkable, unmistakable, and essential (TRUE). This framework has two core components: 1) An overall TRUE brand compass ranking gives a snapshot of a brand’s resonance — the emotional connection a customer has with a brand, and 2) the TRUE brand compass scorecard reveals a brand’s progress along each of the four TRUE dimensions.
The results showed a tale of two digital media eras and the importance of brand building in the digital world:
1990s digital media brands reap the rewards of brand building investment. Established digital media brands from the late 1990s recognized the importance of building their brands with consumers. Yahoo was a TV ad mainstay for many years — “Do you Yahoo!” anyone? This early investment continues to pay off as, despite corporate turmoil, the Yahoo brand retains a reservoir of brand resonance with consumers. And the mighty Google, which was the only media brand surveyed to achieve trailblazer status, continues to invest in TV brand building ads.
The prospect of remote collection lockers and click & collect points replacing London Underground ticket offices sparked a round of strikes last week, creating havoc for commuters. The second round of planned strikes was only narrowly averted this week.
Transport for London’s (TFL) proposal to close 240 underground ticket offices and replace them with automatic ticket machines will result in a proportion of job losses for station staff but present an opportunity for TFL and UK retailers alike, by:
Responding to the popularity of click and collect in the UK. Forrester’s Consumer Technographics® Retail Survey data shows that UK shoppers are responding to retailers’ omnichannel fulfillment capabilities, readily adopting click & collect services. UK grocery stores Asda, Waitrose and Tesco are not waiting for the closure of ticket offices. They are already setting up trials for click & collect services at selected stations across the London Underground network. The click and collect service will allow shoppers to order their food online before a cut-off point during the day, for collection at their local station on their way home in the evening.
Consider this. The iPad is not yet four years old...and 69% of B2B companies expect to stop publishing print catalogs entirely within the next three to five years. In a world driven by such profound change, one cannot help but ask, “What will B2B eCommerce look like in the years to come?”
Today, I’m pleased to announce the release of a report that peers over the horizon and begins to address the important question of where B2B eCommerce is heading in the next few years. In “The New And Emerging World Of B2B Commerce,” Forrester finds that B2B companies are:
Calibrating for a shift in B2B buyer behavior. B2B companies are responding to B2B customers researching and buying online and on mobile devices by creating digital assets where they once only had print and human assets. Further, they are actively preparing for a reality where 50% or more of their total customer base will be buying online from them within three years.
Developing content-enabled commerce. B2B buyers are looking for detailed product specifications, how-to videos, deep and broad FAQs, etc. to satisfy their insatiable appetite for content. In response, B2B companies are increasingly producing and syndicating targeted content aimed at driving purchase interest across multiple channels and preventing B2B customers from abandoning shopping carts.
I have recently joined the eBusiness & Channel Strategy group as an Analyst, from a role as Senior Consultant within Forrester. I have spent the past few years working with Analysts, across the eBusiness & Channel Strategy and Marketing Leadership role teams in Europe, on custom consulting projects for a variety of clients. These projects focused on a wide range of topics and objectives, including vendor selection support for an Italian fashion brand, multi-market digital maturity assessments for a global CPG organization and an eCommerce strategy review for a global multi-brand corporation, to name a few. I very much look forward to continuing to work to provide guidance and insight, now as an Analyst, to help our eBusiness clients to succeed in the Age of the Customer.
I’ve spent the past two days at Finovate Europe in London, which must be one of the more thought-provoking ways anyone in digital financial services can spend two days.
Here’s my perspective on the lessons from the event for digital financial services executives:
More people are focusing on the small business opportunity. There were far more companies proposing to help small businesses manage their finances this year, in numerous ways from access to capital through to document storage and expense management. I was particularly impressed by the work that Efigence and Idea Bank have done to help Idea Bank’s small business customers manage their finances.
Automated financial advice for mainstream customers is edging closer. For years, Forrester has talked to its clients about the huge opportunity, and pressing need, for financial firms to use software to automate the production of financial advice. A growing number of firms are trying to solve this problem from one angle or another, including Money On Toast, Vaamo, Your Wealth and Yseop. Perhaps the best quotation of the event came from Elizabeth Farabee at Yseop: “A banker doesn’t sell the customer the best product, but the product he knows best.” Automating the manufacture of advice can fix that.
Traditional marketing organisation structures are failing touchpoint innovation. With marketing teams largely organised by channels such as search, display, social, and customer care, there is little incentive to think laterally about problems and opportunities across the group.
Emerging touchpoints often redefine and cross channel boundaries, which can quite quickly cause problems for teams with restricted views, budgets, and personnel. Take the emerging touchpoint of interactive video, for example, which turns video content into a microsite and has implications on eCommerce, search engine tactics, social, and content marketing. Aside from process and budgeting issues, many brands find that staff members who have worked together for years find it difficult to break out of their habits when asked to embrace and drive the 'new'.
So what does this emerging touchpoint talent look like? Along with core qualities of entrepreneurial drive, creativity, and the ability to work flexibly across direct and virtual teams, there is also a skills profile that suits this multifarious role. Emerging touchpoint staff members have a wholly different profile from staff members in your ROI-driven, core marketing machine, who typically have a single specialism. In 1991, Tim Brown, the CEO of Ideo, described this flexibility as a T-shaped skill set. While he intended it to be used for collaboration across roles, it's also a useful way to think about a broadening of functional skills, resembling more of an "M" shape. See the figure below for an illustration of this new balance with greater emphasis on multiple skills.
Last year, when attending my tenth Congress in a row, I wrote that MWC 2013 would be more global and more disruptive than ever before. I believe the same will be true this year, with 2014 bringing a very important milestone in the shift to mobile: an install base of more than 2 billion smartphones globally. Mobile is transforming every industry by offering global reach and the ability to offer contextual services. That’s why we'll see many more marketers, agencies, business executives, and strategists attend the traditional telecom show.
Gone are the days when MWC was about operators' supremacy. As my colleague Dan Bieler summed it up in this blog post, telcos are increasingly being backed into a corner. I still remember this quote from Arun Sarin, the former CEO of Vodafone, in the Financial Times in November 2007: “Just the simple fact we have the customer and billing relationship is a hugely powerful thing that nobody can take away from us.” Really? Well, in the meantime, Apple and Google have created two powerful mobile platforms that have disrupted entire industries and enabled new entrants to connect directly to customers.
From a marketing and strategy perspective, I'd categorize the likely announcements in three main areas:
1) The Asian Device Spec Fashion Week: Getting Lost In Device Translation
Seventy-six percent of marketers think that marketing has changed more in the past two years than in the past 50 years!*
Mobile is a significant contributing factor to this rapid pace of change. For example, between 2011 and 2013, Google’s YouTube share of mobile traffic has increased from 6% to 40%! Facebook’s mobile monthly active users have more than doubled from 432 to 945 million!
My colleague Craig Le Clair recently explained why business agility is a key competitive advantage. I just revisited his framework analysis to explain how marketers must adopt the principles of business agility to survive in the mobile era.
For mobile marketing to succeed, you must deliver your brand as a service, implementing more-personalized and more-contextualized brand experiences on mobile phones — but you can’t do it alone. These differentiated experiences require revamped back-end systems, which requires marketers to take an interest in the software, architecture, and processes handled by business technology (BT) teams. You must work closely with your BT counterparts to innovate new capabilities and deploy them with modern process methodologies and tools. Marketers have a lot to learn from the values underlying the notion of agile IT development.
As mobile matures as a marketing outlet, and as consumers around the world continue to embrace it as their primary Internet touchpoint, mobile’s volatility and velocity of change will instill the need to constantly iterate your entire marketing approach. It will become increasingly imperative for marketing leaders to embrace agile marketing.
Between the tackles and touchdowns of Super Bowl XLVIII, about 35 brands went head to head in a competition for consumer attention by airing highly anticipated commercials at $130,000 per second. Which brands won? It’s hard to tell: Bets were in well before Sunday, play-by-plays have been highlighted, trends analyzed, and commentators are still discussing them.
The truth is that the games have just begun. For consumers, the Super Bowl ad spectacle is part of the “discovery” phase — the first of four stages constituting Forrester’s customer life cycle — as commercials educate markets about a new product or momentarily make an impression on individuals. The resulting waves of social chatter now rippling across the Web amplify each brand’s capacity to be noticed.