Are you and your brand prepared for a shift in media consumption?
In April, the civilian labor force participation rate increased by 0.3% to 65.2 percent, as the size of the labor force rose by 805,000. Since December, the participation rate has increased by 0.6 percentage point. The employment-population ratio rose to 58.8 percent over the month and has increased by 0.6 percentage point since December. So what does this have to do with media consumption? It means people are going back to work, this is a good thing, but everything is relative.
A proven fact, an economic up tick creates disposable income. It is during these times when the middle class has extra income, that they invest in gadgets. During the Clinton years, the MP3 technology changed music consumption. Remember the Metallica’s war on Napster? To date the music industry has changed drastically due to the introduction of MP3 technology – namely the iPod. History repeats itself right?
Most American’s are gadget mongers and love toys. Look at the thriving Best Buy business as proof. The economy will make a full recovery sometime over the next 36 months. Coincide the recovery with the iPad and we are sitting on the verge of a major shift in media consumption. Live TV as we know it will evolve from broadcasting at set times to releasing at set times. With that, the ability to watch on the consumer’s time is going to take precedence with younger generations to begin with. Eventually, the older demo will follow suit. Look at Facebook as a an adoption case study for older demographics. The change in consumption is going to make the commercial advertising model that TV employs today null and void. The iPad is a game changer and once a Hulu app is available– game- set –match! Same with DVR functionality, even if television continues to broadcast, most consumers will start taping and fast forward through commercials. Come to think of it, I am a prime example of this. I never watch live television unless it is a sporting event. Alas, I digress. The iPad is a tool that makes consuming media easier than ever thought possible (they probably will make an app for you to watch your DVR), this will make the need for product placement that much more prevalent in TV. Did you see the episode on Modern Family where Phil Dunphy was having a birthday on the same day the iPad was coming out? There is the template for TV advertising in the coming years.
So why the post? Well below I put together a graphic that shows marketing in 2010 from a birds eye view. A major chunk of traditional marketing is about to change due to advances in technology and economic consumption. So the question begs to be asked, is your brand planning ahead and investing in Social Media and Organic search to compensate? Are you researching how to penetrate the market using TV in a future state? Or is it business as usual? OR- do you think I am full of hot air? Let’s check back in 36 months and see if we have moved from talking about Modern Family in favor of “Modern Marketing” with the iPad as the catalysts.
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June 3rd, 2010 at 2:07 pm
[...] Is Your Brand Ready For A Major Shift In Media Consumption? « Social Schmoozing [...]
June 3rd, 2010 at 2:27 pm
This is actually this first time I have seen anyone draw the connection between the iPod and music downloading as a shift in music consumption vs. the iPad and media consumption. Maybe I’m not reading enough news and other peeps have said this, but I think that’s such a great point!
Not that I think you are saying they are completely irrelevant, but I do think that TV and radio are still relevant. I think that the iPad’s popularity has a lot to do with where you live and obviously age group. I look at my parents, who are 57 and 60 and they live in Buffalo. They get up in the morning and watch the local morning news, then they drive a 1/2 hour to work and listen to the radio….then they come home from work and get home in time to watch some more local news and then the national stuff at 6:30. And then, to my horror and embarrassment, then go to the gym and watch Fox News as they ride the bikes. Now granted, my parents may be more news junkies than the average bears, but my point is that traditional TV and radio advertising is perfect for their crowd. They have a lifestyle that allows them to watch and listen to local stations. When would they need to use an iPad? (Besides…my dad would break it and my mom has sent ONE email in her life…technology isn’t their thing.)
On the flip side, I live in the city of Boston. I sit on the T for at least an hour to and from work. I go underground, so even if I wanted to listen to the radio I wouldn’t get reception. An iPad would be pretty perfect for someone like me. A lot of times I leave before the local news starts to go to the gym, and then I get home after it’s ended. Advertisers really don’t have a chance to reach me through TV or radio…unless it’s during The Bachelorette or Glee haha.
So yea, I think a lot of it depends on lifestyle and age group. While I don’t think TV and radio should be completely thrown out of the marketing mix, it’s important to note that even techno-newbs like my parents Google what restaurants to visit on vacation or what landscaper to use….so not ALL of that new fangled SEO crap is lost on them.
June 3rd, 2010 at 2:31 pm
[...] Is Your Brand Ready For A Major Shift In Media Consumption? « Social Schmoozing [...]
June 3rd, 2010 at 2:36 pm
Janet, thx for the note. I am not saying TV and radio are irrelevant. I am saying they will become less relevant over time. Only because the way TV and radio monetize will become obsolete based on media consumption changes due to technology. The lines between the pie parts are blurring, and TV is going to blend into social, SEO and RSS. Does that make sense?
As for area, yes. There will be less iPad usage in Oklahoma compared to Boston. But the time will come where those consumption levels will chip into TV’s current conversion into lead/sales. So better to be prepared now instead of worrying about it when the decline occurs, because it is coming. Traditional marketing methods are blurring into the new methods.
June 3rd, 2010 at 2:48 pm
[...] This post was mentioned on Twitter by Derek Showerman, Rebecca Slosberg and vinay, AJ Ghergich. AJ Ghergich said: Is Your Brand Ready For A Major Shift In Media Consumption? http://goo.gl/VGhl [...]
June 3rd, 2010 at 4:29 pm
Enjoyed reading this post. I would argue that SEO based press releases will still have a place in your marketing 2.0 arena and the product placement ads such as the one you reference on Modern Family isn’t new – you just have to have deep pockets to be able to pay for them. Keep up the great posts!
June 3rd, 2010 at 4:37 pm
Agreed. I never said PR was not a part of the plan. In fact, like TV meshing and migrating over to the Marketing2.0 side, I would argue PR is doing the same. Shift communications does a great job of connecting those dots: http://www.shiftcomm.com/downloads/smprtemplate.pdf Thx for commenting.
June 3rd, 2010 at 5:41 pm
Great article! But do you think that the development of video streaming capabilities through the iPad will be hindered by AT&Ts decision to limit data plans for users? It seems that since a 2GB plan will only get about 20 minutes worth of streaming video, a Hulu App would be by and large useless for media consumption on the current iPad. Personally I’m praying for Verizon to get licensing access and right this wrong. http://www.dailymail.com/News/NationandWorld/201006020914
June 3rd, 2010 at 5:42 pm
Before long iPad and iPhone will be available on any network. Remember we are talking next 36 months.
June 8th, 2010 at 3:11 pm
Hulu would be a great App for a wireless internet network. I’m not sure any cellular network could handle unlimited data plans at this point with the onslaught of video streaming apps that are sure to come and starting to fill the app store. It would bog down even the best cell phone service. But as stated… we’re talking 36 months here.
June 8th, 2010 at 3:45 pm
Yep, once again I’m saying this shift will happen in the future. There are alot of moving parts that need to play out before this can happen. Bandwidth is one of them. Thx for writing.
June 4th, 2010 at 2:10 pm
I found your site via google thanks for the post. I will bookmark it for future reference. Thanks Stock Market Forums
June 5th, 2010 at 3:22 pm
Which one of the 2 is suitable for lead generation, email marketing or telemarketing?
June 6th, 2010 at 1:02 am
[...] Is Your Brand Ready For A Major Shift In Media Consumption … [...]
June 6th, 2010 at 9:32 am
[...] Is Your Brand Ready For A Major Shift In Media Consumption … [...]
June 8th, 2010 at 3:26 pm
Don’t get me wrong, this model sound great. But there are some ramifications to this model.
For one, say goodbye to free network programing as we know it. We’re not going to be able to get past paying for tv in some form. It used to be a trade off for watching advertising you got to watch “this” show free.
Cable was the first to introduce a pay for TV model that minimized commercial interruption. But now that DVR usage has increased we’ve seen them try to counteract by introducing more commercials.
You mention product placement as the new advertising model… but that fails to facilitate small local brands who make up a majority of local ad revenue. Big brands are only going to be able to foot the bill for TV/Online video for so long, before they re-evaluate.
If no one is willing to pay for TV. Then no one gets paid. Not writers, producers, editors, actors, etc. Then all we get is uninspired, uncreative, cheap to produce reality tv. Or an onslaught of self produced YouTube video.
So your prediction of a major media shift is right… but in the long run we may not like the results if were not willing to pay for it.
June 8th, 2010 at 3:30 pm
BTW, I forgot to mention, we wrote a blog post that evaluated the issue of commercial avoidance recently.
http://www.flynnwright.com/blog/post/43/the_price_of_commercial_avoidance.aspx
It’s an interesting topic.
And, thanks for your post!
June 24th, 2010 at 5:54 pm
That was wonderful information. You have done wonderful work communicating your message. Keep up the good writing.
July 15th, 2011 at 5:23 pm
This branding post is terrific with its historical perspective. Thanks for putting this online.