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Archive for the ‘local advertising’ Category

The More Things Change…

Friday, February 17th, 2012

We’re going to talk about what’s coming – about the future. But to do so, we first have to go back to the past – 30 years back, to be exact. In 1981 Adam Osborne had just unveiled his Osborne 1 computer, the first portable (or laptop) to hit the small but growing PC market. The Osborne computer was indeed portable, but just barely so. Even a strong young man had trouble carrying one more than a few blocks. But this early computer made history in another way.

Back then, the general assumption was that anybody who wanted to use a personal computer would have to know how to program. Osborne aggressively challenged that premise, and predicted that in the future less than one in ten PC users would be programmers. His statement caused furious debate at the time, but these days it’s just limpid fact. Most people happily surf the Web, check their e-mail, compose text, construct spreadsheets, play games, and do a thousand other things – all without writing a single line of code themselves.

Cycle forward to today … and tomorrow. Both Apple and Microsoft have announced big changes to their next operating system releases. The announced changes will make both feel more like tablets than desktops. Both will offer access to apps, those nifty micro-programs that are so much fun to use, so easy to get, and so cheap that nobody minds dumping those no longer useful or used.

Here’s a prediction: by 2016, most computers available to consumers are going to look and act just like today’s iPhones and iPads. That is, they will be able to communicate like cell phones, they will all have built-in GPS, and they will feature cameras and touch-screen interfaces. Most importantly, they will depend on apps instead of expensive, pre-loaded software for the functionality users will want. In fact, what we now call computers will have largely faded from the scene – except for some business and gaming applications. Personal computers will be replaced by mobile devices of one sort or another.

I don’t expect the kind of pushback Adam Osborne got for his prediction. For one thing, what I’ve described is already beginning to take place. Tablets and smart phones are replacing desktop computers and laptops in many homes and businesses. The app business is thriving, with hundreds added to “app store” inventories every month. All indicators point to a post-computer future. Your children’s kids will wonder what a computer desk was for.

The cloud will grow in importance to this new digital world, and that’s another replay of history. Back in the ‘60’s and ‘70’s, we used to call it time-sharing, and it allowed us to search enormous databases without taxing the capabilities of our small computers and dumb terminals. We relied instead on renting computing power from the water-cooled giants of IBM and other industrial firms. Ever wonder why some of the older business parks have big, glassy areas in the fronts of many buildings? They were put there when those buildings were constructed, to show off the resident firm’s computer. It typically filled the room and was a point of great corporate pride. The techs who worked in these glass-fronted rooms often wore white lab coats and gloves.

All that said, some things won’t change – at least not much. The Web will still function much as it does now, as time goes by perhaps more as a foundation for social sites than as an entity of its own. There will probably still be websites for some time to come, although some businesses already question the need for them, choosing to go straight to social sites instead.

The world will change a lot during the next five years, at a faster pace than it ever has before. How much more change will there be by 2020? The short answer: a great deal. We’ll report it to you as soon as it becomes clear to us. After all, at Borrell that’s our job.

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YAM’s Bigger Bomb

Wednesday, November 9th, 2011

Yahoo, Microsoft and AOL (let’s call them YAM) plan to share unsold premium display ads to “appeal directly to Madison Avenue’s desire for scalable reach – something that has been increasingly hard to come by via TV, but not yet achievable online,” according to an article in Media Post.

The story reminded me of the effort during World War II to build bigger and bigger bombs. At the start of that war, 500-pound bombs were the standard. As conflict continued, 2-ton, 5-ton, and even 10-ton bombs were developed.  But as it turned out, the secret to ending the fighting did not reside in a heavier bomb, but in a single atom.

The YAM deal will undoubtedly yield some results – just as bigger bombs made bigger holes during World War II.  But it doesn’t hold much long-term promise, in my opinion.  The big Madison Avenue agencies persist in trying to reshape the Web into another mass media choice. They talk about scalable reach and CPMs – vestiges of the days when reach was measured by audiences, large groups, markets and households.  The world of concentrated media is changing to one of fragmented, personal media.  If Moammar Gadhafi were still alive, you could ask him.

The Web doesn’t easily fit any of these parameters.  It is, and always has been, a personal medium, more like a letter than a magazine. As users move their online reception from static computers to portable tablets and smart phones, the personal nature of the Web becomes more prominent while the mass communications side of it continues to wither.

Thirty years ago, when PCs were first gaining a foothold among consumers, a debate raged over whether people who couldn’t program computer code would ever use them. That debate has long since been settled. The debate now is whether people who don’t use spreadsheets and word processors – the bulwark of the static desktop – will use computers. I submit that the immediate and growing demand for tablets has settled that argument as well.

Most of what we use computers for can easily be done with smart phone or iPad apps, which are also more fun to use. They’re cheap, they have no learning curve to speak of, and when we are done with them they can be erased without qualm. Sure, there are work-related apps we can download as well, including some that can link us to desktops for “serious” computing. Some of us will continue to want and need these. Most of us will not.

Chart Copyright 2011 Borrell Associates, Inc

The chart shows where local online ad spending is most likely to migrate as these trends persist and grow.  It’s not that advertisers will stop sending ads to stationary computers. It’s just that most ads will be received by mobile devices.

Advertising to mobile device users follows different rules than the ones set up for the mass media we have all learned to use. In fact, it won’t be advertising any more – at least not entirely. It will be a mixture of advertising and promotions that appeals to individuals, not mass audiences.

Some marketing innovators will learn the new rules and thrive in this new media world. Some, like the Madison Avenue agencies of today, will try to bend the world back to a mass audience model.  The chart offers a clue as to how well this might work.

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Read All About It: Coupons!

Monday, October 31st, 2011

Every Sunday at the grocery store I walk past a rack containing my local daily newspaper.  As I wheel my cart by, I glance at the front-page headline – something that’s supposed to scream out and say, “pick me up!”  It never happens – that is, until this weekend.

The newspaper is The Virginian-Pilot, a 170,000-circulation daily where I spent a dozen formative years as a reporter and editor.  When I was a copy editor, a colleague once told me how to write a great headline.  “Imagine a kid selling newspapers on the street, yelling out the headline.”  That bit of advice helped me win a dozen headline-writing awards.

But on this past Sunday it wasn’t the headline that grabbed me.  The front page (which looks like it was designed by committee) had two headlines:  “Ghouls Rule!” and “Our New National Park.”  Those are about as likely to get me buy the paper as the sign on the potato rack that says, “Russet potatoes.”

The headline that captured me was bigger and more colorful than anything on the front page.  It also held greater creativity and news value than anyone on the copy desk apparently had the energy to think of the night before.  The headline:  “$240 in Coupons This $unday!”

It was both sad and heartening.  Heartening because at least someone was thinking about how to sell newspapers.   Sad because it wasn’t the people responsible for making the product compelling to the community every single day.

Like many newspapers, the once-formidable brand of The Virginian-Pilot is no longer strong enough to sell newspapers on its own.  That power was lost many years ago with the proliferation of local news and information both on TV and the Internet, as well as many years of newsroom downsizing.  At this particular paper, Page 1 reflects the diminished brand of a longstanding, two-time Pulitzer-winning product:  The front-page flag is small, pushed off to the left and crowded out by things above, below and to the right of it.

The same is not true of all newspapers. Many have held fast to what they do best in print. I was in Little Rock a few weeks ago and found The Arkansas Democrat Gazette chock full of news. (This Sunday’s top headlines: “Arkansas 31, Vanderbilt 28” and “Kabul bus bombing kills 12 Americans.”)  I read the entire paper on the flight home and got a robust slice of life about what’s important to the people of Little Rock.  A few months ago I visited Colorado and found much the same with The Durango Herald, a small newspaper that remains the voice of the community.

I guess I should be glad that marketing departments can take charge and find at least something of value to help sell the paper.  After all, the same percentage of people read the advertisements in Sunday’s paper as read the news.  The Internet can’t touch the newspaper when it comes to delivering the most comprehensive package of what’s for sale in a local community on that particular day.  Try to Google that.

Things are changing, however.  Three industry efforts are pushing out newspaper circulars and other local advertising that might just usurp the daily newspaper’s stronghold on that more valuable breaking news of the day:  Where all the big sales are.  Those efforts include Gannett Co.’s ShopLocal.com, Suburban Newspapers of America’s Zip2Save.com, McClatchy Corp.’s FindnSave.com, and The Associated Press’s iCircular.com.   I’m not certain these efforts will ever replace the daily newspaper as the No. 1 source for current sales information for local markets, but they certainly hold the promise of doing so.

In this tough economy, I suppose that shelling out $1.50 on the prospect of saving $240 is as good a way to sell a newspaper as any.   At the rate things are going at some newspapers, they’d do better to fold the paper so the advertisements could become the front page.

 

 

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