4sight

"Email Is For Old People"

It's amazing how accurate a sample of 31 people can be.  The name of today's entry is a quote from "The Bedroom Project" - and we were surprised to hear it back in February of last year.

I frequently reference that ethnographic study in this blog, and recently, a JupiterResearch study confirms a key finding from "Bedroom."

The rise of social networking activity, coupled with texting and incessant cell phone use, has created a notable decrease in the use of email.  That's what our Bedroomers told us.  For many of them, key communication took place on MySpace, Facebook, and on their phones.  Email was rapidly becoming a place where they conducted business and/or communicated with adults.

What does this mean for radio?  As happy as stations may be when their listener database cracks a certain threshold, it is becoming more difficult to reach consumers with email.  According to the JupiterResearch study, "The Social and Portable Inbox: Optimizing E-mail Marketing in the New Era of Communication Tools," nearly one-fourth of respondents report that social networking sites have replaced email.

David Schatsky, the president of JupiterResearch, notes that "marketers need to be aware that consumers are using other forms of communication and must ensure their strategy adapts to consumers' changing behavior."

This is another reason why stations need to go beyond email, and work on initiatives like text messaging, building their own social networking modules, blogs, video streaming, and other conduits with listeners.  This is especially true among younger-targeted stations.  And as we've seen with just about every other technology, these trends typically start with teens and work their way older.

Today, as a fiftysomething consumer, I have a Facebook site, I text constantly, and I play Guitar Hero - all activities that were off my radar screen just a few short years ago.  So, keep building your email database, but keep in mind that trends are rapidly moving in different communication directions.

No, NOT A Blender...

Jacobs' Dave Beasing gets his game on in today's post:

Quick quiz:  What brand name gift item has been in the top 3 on Amazon.com's wedding gift registry for the past several weeks?

Give up?  It's the Nintendo Wii videogame system.  Apparently videogames have evolved from a reason couples split up to become something that brings them together.

It's further confirmation of a key finding in the Arbitron/Jacobs Bedroom Project - that videogames are largely a social activity these days.  Many of the young people we visited at home were eager to show us how much fun they have playing videogames with their friends - either in person or in online competition - and they told us they often "talk smack" with their rivals.  One high school senior even said that he and his friends often refer to each other by their on-screen player names.  (I thought to myself, "At least teenagers get to pick their own nicknames now.  That's social progress.")

The Bedroom Project also verified what our friend Steve Schnur at EA Games has been telling us for years, that games are often a "gateway" to discovering other entertainment.  It's Steve's job to decide what sounds - and music - get put on popular games like Madden Football and NBA Live, causing many gamers to then search for more songs by those artists.  If not through James Bond videogames, how else would one of our Bedroomers - a senior at UCLA - have become a Henry Mancini fan?

Just as a whole generation has grown up loving the NFL because of Madden (the videogame, not its namesake TV commentator), Rock music is experiencing a revival that can be directly credited to Guitar Hero.  The new edition was released last weekend, a major pop culture event.  iTunes is making all the Guitar Hero songs available online, and wireless "axes" and other new accessories are rushing to the market.

Technology changes, but smart marketing doesn't.  Videogames bring people together, and - whenever that happens - opportunity knocks.

Jacobs Summit Recap

We've put the finishing touches on Summit 12 - something we're sure that many readers of this blog will be thankful for.  But the NAB/R&R Conventions - and the Summit - were a great experience for us this year.  And I wanted to thank a number of people, and give those of you couldn't make it a sense for how it came off.

Clockwise from top right: David Rehr, PPM Rocks Panelists (John Snyder, Charley Lake, John Fullam, Paul Blake), and Dave Beasing in the stylish hat.  Top left: Richard Laermer, and Fred Jacobs, center.

First, "The Bedroom Project."  All of us at Jacobs and Arbitron were thrilled with the receptions to both presentations - the Tech version at the NAB on Wednesday, and "Radio Uncovered" at the Summit on Thursday.  In that second presentation, a packed room saw Dave Beasing and Dr. Ed Cohen focus on radio's difficulties and opportunities with a young generation that is clearly media and entertainment focused.  And Dr. Ed's insights about how "Bedroom" has shed light on the difficulties of attracting young participation in research studies, as well as how PPM is developing because of studies like this one, was riveting.

These revealing video segments were put together by Paul Jacobs, Dave Beasing, and of course, Tim Davis, who once again designed the look of this project.  Video modules from these presentations will be available at a new site that Arbitron has launched, www.thebedroomstudy.com on October 8th.

NAB President/CEO David Rehr kicked off the Summit for the second consecutive year.  He talked about his new "Radio 2020" initiative, and candidly answered all my questions about satellite radio, the convention, and how the NAB is changing under his leadership.  David is truly an inspirational leader, and his presence at Summit 12 was an honor.  (And we also found out that he owned the 8-track, "Cat Scratch Fever" by Ted Nugent.  How's that for a nugget?)

Our "PPM Rocks" panel truly rocked.  We were blessed to have three key players from Greater Media's Philadelphia team - John Fullam, Paul Blake, and Charley Lake - representing management, sales, and programming.  And Arbitron's John Snyder used his data, and his wit, to tell the room some important facts about PPM that most attendees had never seen.  It was a breakthrough session, and one that hopefully sets the tone for PPM and Rock Radio in the years to come.

And finally, Richard Laermer punked the room with his treatise on "Punk Marketing."  Using real-life advertising examples, as well as some marketing efforts from radio stations, Richard urged the room to get out of conventional marketing traps, be transparent and not be afraid to cede some control to the audience.  He's a great speaker, and we were glad to have him anchor this year's Summit.

Thanks go to Summit sponsors Mercury Research, ILG (Independent Label Group), CMI, The Bob & Tom Show, Arbitron, The John Boy & Billy Big Show, and of course, MusicMaster.  In fact, MusicMaster sponsored giveaways throughout the session, including a new Dell laptop loaded with their scheduling software.  The winner?  A great guy - Mark Hendrix from Entercom's Greenville/Spartanburg cluster.

Also, thanks to the entire Jacobs Media staff.  Paul Jacobs, Dave Beasing, Tim Davis, and Lisa Riker were big movers and shakers for Summit 12, along with Bill Jacobs, Keith Cunningham, Ralph Cipolla, Eric Holmes, and Elnora Lowe.

And to the Arbitron team - Dr. Ed, Barb O'Hare, Bill Rose, Jessica Benbow, Liz Bruen, Ron Rodrigues, and others.  And of course, our friends at R&R.

We will have streaming video of the Summit sessions posted on our website soon, and we'll send out an email alert when they're available.

Next year, see you in Austin.

Has Mt. Dew Seen "The Bedroom Project?"

Jacobs Media's Dave Beasing offer his thoughts on Mt. Dew's marketing strategy:

No, they haven't see it, but they're clearly learning a lot about their consumers' attitudes in their own research.  In the Arbitron/Jacobs "Bedroom Project," one of the many revelations is the motivation for playing videogames.  The folks at ad agency BBDO and Mountain Dew seem aware that videogamers are extremely competitive, enjoy the social aspects of videogaming, and try to avoid losing their cool during battle.  The creative result is this television commercial for Dew's new energy drink:

If the Dew Game Fuel marketing team had used traditional consumer research, they might have tried to sell that delicious cherry flavor.  Or they may not even have known that their target consumers play Halo and are beyond excited about the upcoming release of Halo 3.  But with ethnographic research, marketers see real people showing their real emotions in their natural habitats.

Fred Jacobs, Arbitron VP Ed Cohen and I invite you to witness real people using media and technology during our presentations at the NAB/R&R Conventions and Jacobs Summit 12 in Charlotte.  Sorry.  We won't be showing a single chart or graph, but you may actually learn more about today's young people than if we had.

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte next week.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are Wednesday afternoon at 3:45 at the NAB; Thursday afternoon at 2:15 for the Jacobs Summit 12.

A Cautionary Tale Part 2

Paul Jacobs offers a follow up to his piece earlier this month about marketing mistakes:

A while back I wrote a posting about how Diet Coke's market share has fallen and pointed out several lessons that broadcasters could learn from their experience.  Here's another example from outside of our business that points out the cost of poor decisions.

Unilever has announced they were putting their laundry detergent business up for sale (remember Wisk?).  This is noteworthy because a few decades ago, Unilever was locked in a pitched battle against Procter & Gamble (Tide, etc.) for supremacy in this highly profitable category.  Hundreds of millions of dollars in advertising and marketing were spent - this category is extremely important to both companies because of the huge profit margins involved and the proceeds go to invest in new products and increasing market share.

The fact that Unilever is getting out of the business shows who the big winner is.  But in a recent article in Advertising Age, two reasons stand out that we should take note of:

1. P&G aggressively conducts research and isn't afraid to innovate.  They were one of the first believers in ethnography, where consumers are viewed using the product in their natural environs.  They knew that data was valuable, but there's no substitute for observing consumer behavior.  While P&G researchers were watching consumers wash their underwear in their basements, the article notes that "Unilever executives hadn't been in a laundry room for years," and in an interview in 1999, their President was quoted as saying, "That would never happen here."
   
   He doesn't have to worry about that any more.  Of course, he probably has someone else wash his underwear.
   
   As we learned while conducting "The Bedroom Project" ethnographic study for Arbitron, observing consumers in a natural setting interacting with and talking about a product is incredibly valuable, and something radio needs to do more of.  The mystery behind why radio listeners do what they do can be found simply by observing behavior and following up with key questions.
2. P&G played hardball.  Last year, P&G spent $218 million marketing their laundry brands compared with $25 million for Unilever.  They swamped them.  In radio, we're trying to defend ourselves with shrinking promotion budgets while Apple spends hundreds of millions to market iPods and iPhones and Sirius and XM spend even more marketing satellite radio.  Why are we surprised to learn that usage of these products are cutting into time spent listening to radio?

Some of the solutions for radio's challenges are out there.  We can learn from other's mistakes.  And mistake number one is, "Don't become Unilever."

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte this September.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are Wednesday afternoon at 3:45 at the NAB; Thursday afternoon at Jacobs Summit 12.

Form & Function

A new study by ShopLocal.com among pre-teens underscores the importance of looks and utility in electronics and gadgets.  Not surprisingly, the boys are all about entertainment, while the girls are focused on fashion in their toys.

That's about the way it shaped up among their older counterparts in "The Bedroom Study," the ethnographic study we conducted for Arbitron earlier this year.  Steve Jobs and Apple totally feed into these perceptions, and cell phone companies and mp3 manufacturers have learned that form and function go hand-in-hand.  Toys aren't just toys for many consumers.  They make a fashion statement, too.

The implications for radio are numerous.  The appearance of radios - especially of the HD variety - could be critical factors in their adoption.  And as we have learned from the many Tech Polls we've conducted, if you want to understand what we'll all be doing in the years to come, just watch your kids.

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte this September.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are Wednesday afternoon at 3:45 for the NAB & Thursday afternoon at Jacobs Summit 12.

"The Internet's For Old People"

Today's title is a direct quote from Mark Cuban, speaking to the CTAM (Cable & Telecommunications Association for Marketing) Summit.

Cuban claims that the Internet is essentially stagnant, with the exception of breakthroughs like YouTube.  In his mind, it's moving toward "intranet communities" provided by cable operators that are the future.

"The Bedroom Project" - that ethnographic study that Arbitron created and we executed - lends some credence to Cuban's claim.  Frankly, we were a bit surprised about how the Internet is perceived by many Gen Y consumers as a place for practical, business-like "adult" functions - like banking, school communication, and job hunting.  Aside from YouTube, social networking sites, and watching "Grey's Anatomy" on ABC.com, the Internet has become passé.

Is the Internet destined to be branded as "old media?"

You can see both "Bedroom Project" presentations at the NAB/R&R Conventions in Charlotte this September.  Conceived by Arbitron and conducted by Jacobs Media, "The Bedroom Project" is an ethnography study about media, technology, and survey research.  The presentations are Wednesday afternoon at 3:45 for the NAB & Thursday afternoon at Jacobs Summit 12.