Facebook at MWC: The World Is Shifting Mobile

Thomas Husson

Together with Nokia X announcement this morning and Samsung Galaxy S5 later today, one of the most expected events of Day 1 at Mobile World Congress was Mark Zuckerberg’s keynote. He did not announce anything new and mostly shared his vision of the Internet.org coalition. Facebook wants to connect up to 3 billion people in the next five years.

Facebook already has numerous agreements with telecom operators worldwide – especially in emerging countries where the social media giant can be used to generate acquisitions of new customers. On the contrary, operators are a key distribution platform to help Facebook acquire its next billion customers.

This morning at MWC, WhatsApp’s CEO announced that the messaging app will enable voice within its app starting from Q2 2014. Services like WhatsApp are already cannibalizing SMS among smartphone owners as highlighted here by colleague Dan Bieler. What if WhatsApp does the same thing, further cannibalizing operators’ core voice revenues? This will for sure force operators to reinvent their business models and to embrace agile innovation and partnerships with OTT players. For example, Reliance in India and Mobily in Saudi Arabia have existing partnerships with WhatsApp.

However, Facebook’s CEO first keynote at MWC goes beyond the love-hate relationship with telcos.

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Agile Teams Are Critical For Social Marketing Success

Kim Celestre

I often ask marketing leaders how they organize their resources for social, and the responses are rarely the same. I hear everything from: "We have one person in PR who does social part-time" to "We have hundreds of full time social marketing managers across the globe." Despite this disparity, I find that marketers often share the same level of frustration when they try to advance their social marketing initiatives. Whether they have one social marketing manager or hundreds of social marketing managers, marketers claim that their existing resources are stretched.

Quantity does not equate to quality

Marketers tell us that a lack of dedicated employees is a big pain point. And if you dig a bit deeper, you will find that this is a daunting obstacle that prevents many organizations from scaling and optimizing their social marketing efforts. Marketers often feel that the only way to scale and optimize is to hire more social marketing managers. Yes, more dedicated headcount helps, but it is not the panacea. In order to be truly organized for social marketing success, you need a new perspective.

You must have agile teams 

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Content Marketing Fortnight VII: The Pains And Joys Of Going Mainstream

Ryan Skinner

What’s happening (that’s important) in the world of content marketing? This is your fortnightly round-up of the best of the best stuff online for marketers who think about content; for the previous “Fortnights”, go to the bottom of the post. (And for more information about what the Content Marketing Fortnight is, see my intro from the first one. Get this curated newsletter in your inbox every other week – send me a mail.)

NewsCred scores $25 million. Tech news: “What’s content marketing?”
It’s no $16 billion, but the $25 million Newscred raised to expand its content marketing cloud offering is no insignificant sum. The company is moving fast to help brands win relevance with content, boasting a unique weapon (licensing for premium content with thousands of top-shelf sites). Re-code – previously the Wall Street Journal’s tech team – was taken aback, asking, “What’s content marketing?” Percolate’s Noah Brier answered them.

Federated Media, a content marketing pioneer, backs out of content marketing

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Digital Is Selling More Soap Than It Gets Credit For: Nielsen Study

Jim Nail

This headline comes from Ad Age today.

I'm glad to see more quantification of online ads' impact for branding. But I lament that this kind of story is still headline-worthy. Why is it still so surprising that online advertising is effective and helps sell products?

After all, I wrote about the first Cross Media Optimization Study (XMOS) that documented the brand impact of the lowly banner ad for Dove Nutrium . . . when was that . . . must have been about 2001. And scores more of these studies have come out since. In my research with marketing mix modeling vendors, I hear that digital is readily quantified and has an important role in the mix.

So can we get beyond nonsensical biases about "banner blindness" and acknowledge the reality that ads don't have to be a Cannes-winning video extravaganza to get the message across?

End of rant. I feel better now . . .

Is Aereo About TV Or The Cloud?

Jim Nail

Julianne Pepitone's review of the upcoming US Supreme Court case American Broadcasting Companies, Inc. versus Aereo nicely covers the case's implications on two big industries, old and new: television and cloud computing. (P.S. Thanks for the shout-out to me, Julianne!) The potential impact on the TV industry is pretty clear, but the cloud? I'm not a lawyer, but the issue is likely to turn on the difference between the copy being in the cloud or in your home.

In 1984, the Supreme Court upheld the right of individuals to make a recording of a television program for their private viewing in what has become known as the Betamax case. So far, lower courts have used this precedent, in combination with Aereo's clever technical design, to say Aereo is legal. For the Supreme Court to rule against Aereo, it will have to find that some aspect of their model is different from a VCR. 

And there it is: The VCR sits in your living room, while Aereo is in the cloud. No doubt ABC and the broadcast industry will make the case that this is a crucial difference and since Aereo is the entity sitting on these copies of their programming, Aereo is infringing on their copyright. It will be fascinating to see the arguments in detail and see how the Court views them.

Julianne notes in her article:

If the court rules against Aereo, the startup and its supporters warn the ramifications could put other services that use remote, or cloud-based, storage -- Google Drive, Dropbox, remote DVRs and many more -- at risk. Any of those outcomes depend on the scope of the Supreme Court’s decision.

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Show Us Your Social Marketing Prowess: Submit An Entry To The 2014 Forrester Groundswell Awards!

Kim Celestre

The 2014 Forrester Groundswell Awards entry deadline is February 28, which is only 10 days away! There are many benefits to winning a Forrester Groundswell Award — but you must submit your entry by the deadline if want an opportunity to show the world your social marketing prowess! Below are some links to details so you can get started on your entry today:

2014 Forrester Groundwell Awards Announcement

How to win A Social Reach award

How to win A Social Depth award

How To win A Social Relationship award

Forrester Groundswell entry form

Nate's last call for submissions

Help! The Computer Ate My TV Buy!

Jim Nail

How Software Is Eating Video Ads And, Soon, TVMy new report, “How Software Is Eating Video Ads And, Soon, TV” just went live. In it, I document how automation has gained traction in digital media buying and why it’s only a matter of time before we see it jump to assets such as online video. Read the report now and join me for a Webinar on Tuesday, February 25, at 11:00 a.m. Eastern standard time.

Sure, the scarcity of inventory and the premium associated with professional video content drive caution and reluctance among sellers. But in a few years, short- and long-form video content, both user-generated and broadcast-native, will be bought programmatically in an inevitable takeover of automated trading that has already started today – and will work all the way up to TV buying. Two forces make programmatic buying unavoidable:

  • Traditional buying cannot cope with audience fragmentation across devices. The explosion of new platforms and ways of viewing videos will continue dispersing audiences, making it increasingly difficult to reach the desired number of viewers through linear TV alone. And many of these new platforms are digital, enabling a break from broad age/gender ratings buys and a move to addressing ads to individuals. Traditional manual buying approaches simply can’t cope with this volume of video sources and the shift to addressable advertising.
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Forrester Groundswell Award Entries Are Due February 28

Nate Elliott

You have ten days left to enter the 2014 Forrester Groundswell Awards  and to receive recognition for your successful social programs. Winners receive a nice shiny trophy, a winner’s badge for your website, a free pass to the Forrester Marketing Leadership Forum in San Francisco, a chance to accept the award on stage, and lots of recognition in Forrester speeches and reports.

Not sure which category to enter? Check out this video, which explains all our categories.

Remember: The deadline is February 28, 2014  and you can enter here

Does Native Advertising Face A $3 Billion Question?

Ryan Skinner

Predictions about native advertising’s medium-term impact are both short-sighted and simplistic.

Hedgehog and the Fox by Isaiah Berlin

In 1973, the Wall Street Journal quoted a professor: “Academic politics is the most vicious…because the stakes are so low.” Thereafter, the idea (that the intensity of a dispute is inversely proportional to its stakes) was named after the professor: Sayre’s Law.

Sayre’s law applies very well to native advertising. According to Forrester data, digital advertising dollars are today some 20% of traditional advertising dollars. Of those scarce digital ad dollars, something far less than 10% goes to anything that could be characterized as native advertising.

Perhaps that’s why the dispute has been so vitriolic (at least, by advertising’s standards).

The day after the New York Times launched a redesign to facilitate more native advertising, Tom Foremski, a media commentator, said: “Native advertising is the world’s worst idea and I can’t believe the New York Times management is so gullible and clueless in agreeing to its publication.”

He joins an authoritative cast of native advertising skeptics. Another, Bob Garfield, described native advertising to the Federal Trade Commission as something akin to bat poo. Even Barclays Capital believes the practice peaked in 2012 and will shrink to a less than $500 million market by 2017.

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Marketers: Focus On Video Audience Fragmentation, Not Cord-Cutting

Jim Nail

With all the talk of cord-cutting, you'd think consumers were abandoning video entertainment for a return to a Neolithic era of telling stories around the campfire after the day's hunt. I published a report a couple of weeks ago called Marketers: Don't Worry About Cord-Cutting that shows this isn't the case. (First, a shout-out to my colleague Jeff Wray, who allowed me to use some of the data in his Forrester Research Pay TV Forecast, 2013 To 2018 [US]).

Are consumers getting their video entertainment from different source? Yes, largely migrating from cable to telecom providers like Verizon and AT&T. This has little to no impact on how marketers plan and buy their TV campaigns.

Are consumers filling some of their video entertainment hours with online streaming sources? Sure, but for the most part, online video viewers are -- and remain -- heavy linear TV viewers, using new sources to get more of the entertainment they love (as I documented in this report last fall). Some younger consumers are delaying getting a pay TV subscription of any type, and perhaps they may never. But then they will fill their entertainment hours with video from Vevo, YouTube, HuluPlus, etc., where advertisers will have ample opportunity to reach them (oh, yes and some ad-free Netflix, but then, ad-free DVD viewing is fading away).  

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