Tag Archives: social media

Reasons for the growth in programmatic ad trading

As incumbent magazine and newspaper publishers migrate their content and advertising from print to online, many are holding back from programmatic trading of advertising for fear it will drive rates and margins downwards. At the same time, Internet companies are moving to increase their share of advertising budgets by investing in systems to trade ads automatically based on information on website visitors.

Source: PwC Global Entertainment and Media Outlook 2014-2018

As these trends play out, online publishers have seen a rise in their digital ad revenues, whereas traditional publishers are struggling to grow theirs. This divergence is being attributed (at least in part) to the rise of programmatic ad trading.

But for traditional publishers, ignoring the problem won’t make it go away: whatever approach they decide to take to programmatic ad trading, the fact is that it’s here to stay as part of the marketing mix.

According to the last Global Entertainment and Media Outlook released by PwC today, publishers should actively embrace programmatic trading as one element of a suite of advertising options.

There are clear reasons for the growth in programmatic ad trading. On the advertiser side, it allows brands to scale more quickly and target ads more precisely. And its heavy usage by online-only publishers is one reason why marketers are shifting some of their budget away from traditional publishers. However, programmatic ad trading can also bring benefits for print publishers looking to grow their online presence.

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Social media and loneliness

Does Facebook / social media help us relate or just connect? Are we less lonely having the new tools?

If you have such questions, I would recommend the video below. It quotes the thoughts of Sherry Turkle from her TED talk – Connected, But Alone and it’s also based on Dr. Yair Amichai’s article -The Invention of Loneliness.

From “mass media” to “my media”

The last Global entertainment and media outlook produced by PwC revealed some interesting insights. As media consumption fragments across devices, consumers increasingly want personalised experiences: their content on their chosen devices when they want it. This move to ‘my media’ can be seen in ‘cord-cutting’ where consumers abandon their pay TV subscriptions and instead access the content they want via cheaper, Internet-based content services. The cord-cutters are now being joined the ‘cord-nevers’, a younger generation who would never think of paying for TV. A further manifestation of ‘my media’ is consumers’ growing use of the ‘second screen’smartphones and tablets to comment on and share the experience of TV content with friends, often via social media.

Understanding new consumers is key

Over the next five years and beyond, all E&M businesses will increasingly engage with a new and more diverse global customer base, with different needs and expectations. According to the OECD, by 2030 two-thirds of the world’s population will be ‘middle class’, with a daily expenditure of US$10 to US$100. This new middle class will appear primarily in Asia Pacific-and the E&M industry needs to understand its needs and motivations to capture its spending power.

Economic growth + new middle class + mobile = ongoing digital growth

Economic studies in emerging markets show consistently that rising mobile and broadband penetration boost economic growth. But fibre networks and next-generation mobile broadband services demands heavy investment. So telcos will have to partner with one another to reduce network costs, and collaborate with ‘over-the-top’ content players to roll out new services. Going forward, the E&M companies that seize a profitable position in the new digital ecosystem will be those with the speed, flexibility and insight to engage and monetise an ever more diverse global base of connected consumers y delivering personalised, relevant, and ultimately indispensable content experiences.

Will social media soon become an indispensable retail channel?

Social Media Outposts
Social Media (Photo credit: the tartanpodcast)

The use of social media sites like Facebook has exploded in recent years – the site recently hit one billion users. But while people are checking out social media sites daily, how many of them actually shop?

A recent study showed that seven out of ten online shoppers who took the survey say they never shop this way. That should also remain the status quo for the immediate future, as only about 5% say they’ll shop more via social media in the next 12 months.

But still, what are online shoppers doing on social media? Essentially they’re commenting on companies and products they know and discovering new ones. However, there are differences in motivation among these social media users, divided into three groups based on their behavior: “brand lovers,” “deal hunters” and “social addicts”.

Out of those brand lovers who say they interact with brands via social media, 53% go shopping in a physical store daily or weekly, compared to 45% of the overall sample, and 58% buy something in a physical store at least once a week. The deal hunters say they’ll click through to a specific online store if offered a good sale or an attractive special offer. Appealing to deal hunters looking for good offers and contests can be a great way to drive traffic to the provider’s website. Noone can afford to ignore the social addicts – they use social media to talk about their  experiences with brands, learn what their friends like and recommend, find customer service answers, and submit ideas and product feedback to companies. Getting the message out to social addicts can support the brand, while ignoring them carries significant reputational risk, as these very active online users tend to have huge social media networks and wield an outsized influence among them.

So, will social media be an indispensable sales channel? Not likely but there’s good reason for retailers to continue focusing on social media investment.  Campalyst analysed the world’s 250 biggest internet retailers and found that 97% of them are already on Facebook, 96% have a presence on Twitter, and 90% use YouTube. The social media traffic generated in many cases is impressive; 43 of the 250 can claim more than one million followers on Facebook.

More details here: http://pwc.to/Xfl6r0

The future is now: remote workers in the knowledge times

Do you think the days when new hires will not come into the office for training is far away? I’ve done it two years ago and I’ve done it again these days. It’s true it was an internal hiring but all training has been delivered virtually: video conferencing and practice based assessments. Some eLearnings are also on their way… Because the rites of social media are so familiar to many employees, I can establish working relationships faster than ever with members of my remote teams.

As a recent McKinsey study shows, virtual approaches to work are attractive to a wide array of employees, including working mothers, older workers, and younger, Generation Y professionals who want flexible lifestyles from the start. Younger workers are often particularly suited to work remotely, having grown up socializing and collaborating online. “They don’t want to work 9 to 5,” says Bonny Simi, vice president of talent at JetBlue, “and it doesn’t matter to me if they work better from six at night until three in the morning or if they can do the work in six hours instead of eight.” (McKinsey Quarterly – “Preparing for a new era of knowledge work”).

Employers first began ramping up their use of remote-work arrangements in the 1990s. As technology evolved, companies such as IBM found they could eliminate permanent offices for their sales force and other customer-facing employees. Consulting companies also made a better use of “open-spaces” since partially their staff have to be on client site anyway.

Such moves yielded huge cost savings on real estate while increasing the time consultants could spend with customers. Now, thanks to broadband, cloud computing, and a burgeoning market for online collaboration tools, many more jobs that once required “face to face” interactions can be performed anywhere. These jobs range from insurance claims processors to law associates and corporate workers in functions such as finance or knowledge management.

In fact, by some estimates perhaps one-quarter of all US jobs could be performed remotely, and in McKinsey’s 2011 survey of 2,000 US businesses, one-quarter of them said they planned to use more remote workers in the future. Are you going to be one?

Knowledgeheimer’s treatment: unlocking value and productivity through social technologies

I remember how eight years ago I was explaining to one of my clients the benefits of having an online platform that could be easily updated by his sales force, used by both client facing and back office and act also as a sales platform for anyone accessing the internet. It was an innovative idea, custom made but the word “social” had nothing to do with it. Technologies have come a long way and we often hear the word “social” sticked to some other ones such as “knowledge sharing” or “business benefits”. Nowadays, by not reaching the full potential of the existing knowledge sharing system, companies begin to suffer the same effects that the Alzheimer disease has on human brain, as we’ll see shortly.

According to McKinsey’s “Social economy” report, the social technologies today look like this:

  • over 1.5 billion networking users globally;
  • 80% of online users interact with social networks regularly;
  • 70% of companies are using social technologies; 90% of them report business benefits from such technologies;
  • knowledge workers spend 28 hours per week writing, searching and collaborating inside the company.

However, their potential is somewhere here:

  • between USD 1 billion and USD 1.3 trillion could be unlocked by social technologies in four sectors;
  • twice potential value from better enterprise communication and collaboration;
  • 20-25% potential improvement in knowledge worker productivity.

About Knowledgeheimer

During the last few years, I understood that knowledge management comes in fact to maintain the organization’s brain, to keep it active, to develop it so the organization is able to work and innovate. I observed that organizations with dysfunctional knowledge management begin to suffer the same effects that the Alzheimer disease has on human brain: intellectual abilities are lost, even reach inability to think abstractly, the coordination is limited, and they have trouble performing daily activities. Since the evolution is similar to an organization’s brain, I named this disease Knowledgeheimerclick here for details on this concept.

How do we treat these symptoms?

McKinsey’s report shows that two-thirds of this potential value lies in improving collaboration and communication within and across enterprises. The average interaction worker spends an estimated 28% of the work week managing e-mail and nearly 20% looking for internal information or tracking down colleagues who can help with specific tasks. But when companies use social media internally, messages become content; a searchable record of knowledge can reduce, by as much as 35%, the time employees spend searching for company information. Additional value can be realized through faster, more efficient, more effective collaboration, both within and between enterprises.

The amount of value individual companies can capture from social technologies varies widely by industry, as do the sources of value. Companies that have a high proportion of interaction workers can realize tremendous productivity improvements through faster internal communication and smoother collaboration. Companies that depend very heavily on influencing consumers can derive considerable value by interacting with them in social media and by monitoring the conversations to gain a richer perspective on product requirements or brand image – for much less than what traditional research methods would cost.

To reap the full benefit of social technologies, organizations must transform their structures, processes, and cultures: they will need to become more open and non-hierarchical and to create a culture of trust. Ultimately, the power of social technologies hinges on the full and enthusiastic participation of employees who are not afraid to share their thoughts and trust that their contributions will be respected. Creating these conditions will be far more challenging than implementing the technologies themselves.

The 160 characters speech. How to get the attention of Generation Y.

Web 2.0

I presented a KM tool this year twice for two different groups in the same company. Once in January and once in June. In January the audience was aged around 30 and over with at least some years of work experience. In June I had people around 20 or slightly over, I assume most of them new joiners.

The presentation was highly interactive, practice-based, with no PowerPoint but… what a difference between the two groups! The first one showed an interest in all aspects of the tool, asked relevant questions to clarify how they can use it best for their own projects and you could see the thrill when they found something new. The second group did not ask many questions and when they did there was more a superficial clarification of functionalities. Moreover, even if it was a new tool for them and highly applicable for their daily job, the thrill of discovery was just not there…

This made me thinking about the new generation. How do you get their attention and what would be a better way to train these people?

Working environment

Raised in an educational culture of working in teams and being highly socially connected through computers, cell phones, text messaging, instant messaging, social networking, blogs, multi-player gaming, etc., the new generation is extremely social-centric. They are building relationships virtually and they are bringing a culture of constantly working together into the workplace – wherever that is. They make sure their friends remain “in the know” by sharing information such as articles, job opportunities or YouTube videos. It is a continual habit – not daily, but hourly.

Education

Statistically, generation Y (and Z) will be the most educated generation ever. According to the “UNESCO Global Education Digest 2010” the number of secondary education students rose from 195 million in 1970 to 526 million in 2008, meanwhile, the number of tertiary students increased by six times over the same period, from 32 million to 159 million students in 2008.

Is this relevant? How much do this change the interest they will show in doing their job at the highest standards? Does this mean they will be ready for a life-long learning environment? In some cases it may be so but I’m not convinced about the majority. Education nowadays is a “must have” because you cannot find a proper job otherwise but I see way too much superficial behaviour here. You can do a paper work a lot faster by web searching today than you could have done it 5 or 6 years ago (needless to say 15 years ago) but you don’t pay much time analysing the information and its sources. Issues such as credibility of sources have melt down into wiki and blog posts. In this way you may have time to chat or post a joke on Facebook but this will not make you a better performer at your work place.

Training

When it comes to learning IBM has found different age groups respond best to different methods of training and professional development. Baby Boomers prefer the traditional structure of a classroom and teacher. Generation X typically opts for online courses that are self-paced, while Generation Y benefits more from social-based learning approaches.

I do agree with IBM’s results. The new generation needs an informal learning environment and messages have to be short and action based. It’s the culture. You need to communicate to them with some of the techniques used in advertising. You have to advertise your new tool the same way you would do with a new tooth paste. Otherwise, they will not be interested in using it. It just won’t create the buzz!

Thinking about all these I reached the conclusion that the best presentation for the new generation is a 160 characters speech. Maybe, just maybe, this “twitter-like” message would have a chance.

And just wait for Generation Z…

CSR survey: only 27% of the CSR reports explicitly quantified objectives

budget cuts - the axeman cometh
Image by byronv2 via Flickr

A recent study – “CSR Trends” reviewed 602 companies listed in five Standard & Poor’s indices, as well as private companies and crown corporations. The survey does not evaluate the accuracy of the information being reported in the documents or a company’s compliance with any regulation but rather how effective companies have been in communicating their CSR strategies and performance.

The results show that CSR has changed from a nice activity to a core business value that defines the most significant businesses in the world. There are, however, differences in the way CSR results are communicated and here are some key findings:

–    81% of companies have CSR information on their websites but only 50% consider this information sufficiently important to deserve a link on the corporate home page;

–    80% of the companies, many of them worldwide brands such as Coca Cola, Nike, IBM, provide comprehensive explanations of their business activities. Surprisingly, 20% of the companies, many of them smaller and less well known than the multinationals mentioned above, did not provide a profile, essentially eliminating the context of their CSR strategies and achievements;

–    Targets that are specific, measurable and have a deadline are significantly more meaningful than a general statement of good intend. Nevertheless, only 65% of companies seamed to realise that and include a summary of objectives on a dedicated space inside the report and only 27% of those objectives have been quantified.

–    CSR is an interactive endeavour that requires constant communication with stakeholders. However, only 24% of companies use social media such as Twitter or Facebook to communicate their CSR activities.

This survey’s research was conducted jointly by PricewaterhouseCoopers’ Sustainable Business Solutions practice and Craib Design & Communications. The entire report can be downloaded here.