The opportunity cost of over-engineering / over-producing TV commercials.

February 29, 2008 at 7:03 am | In Digital thinking, General, Segmentation, Traditional, video | No Comments

 

Back in the good old days before audience content consumption fragmentation, it made sense to invest heavily in the crucial staple 30 second commercial. We relied heavily on it’s ability to drive demand. We made an art of measuring the frequency of exposure and constructing it’s content became an unquestionable `high ticket`art form.

Contrary to advertising doomsday analysts, the content landscape is definitely changing, but no, the 30 second commercial is not dead and will not be as long as marketers have the need to stimulate mass demand. Video will remain an extremely powerful content form and TV is still the most efficient content mass distribution form ever invented (that is if they don’t break the model by spending rediculously on High definition).

A cynic may also say that it’s still good business to spend someone else’s money the easiest way possible and increase production values.

My question though is, has this game gone too far?

When developing genuinely innovative connection ideas and insights are either too expensive, or beyond the capability of an antiquated structure, or when a brand has nothing worthwhile to say, it is much easier to mask our charade and wow a client and customer with `bling, bling` special effects and mega productions.

I fear that it may just be one more case of an old (very profitable) industry holding onto it’s business model. Ad agencies make easy money producing just a few expensive mass messaging commercials. Likewise, film production companies refuse to erode their very profitable business model.

Web video is reminding us that the idea is the key to start a conversation, not the production values or the expense of the production.

At the same time, we are approaching a tipping-point between mass and segmented messaging and that TV film production, and possibly bad advice from ad agencies is robbing new media of production investment and retarding much needed content diversification and interface design.

So, what’s the solution?

OK! Ad agencies will argue that producing more video and other content forms will be way too expensive and work intensive. Sure, planning departments are not structured to generate the multiple segmented insights required for more molecular messaging.

Similarly, clients are not structured for the increased vendor roster, project management / approval burden.

Also, there is a definite political risk for clients who dare to expose themselves and support change. No IT manager will get fired for buying Microsoft (regardless of the bugs and flaws), but by forcing a change to Linux, even if it is a smart decision, every disruption is amplified.

The reality is that there is too much inertia / too many structural problems in the agency model to drive the required change. If disruption to their business demands more segmented messaging or a innovation from a diversified content & contact mix, this change needs to be driven by clients.

Risk is merely perception. To affect change, I think we also need to take a step back and re-look at our perception of `too expensive`. Is mass messaging with short term, often totally unaccountable effect a wise place to over-invest??

The real question that we need to reflect on is; If diversified content forms and more segmented messaging produce more relevant and effective brand / consumer conversations, are they actually more expensive?? Is there a larger opportunity cost to ignore the change or set a measured (even if it is perceived as more costly) action plan to find a communication mix that makes our brands relevant to our consumers again.

Cheers, BC

The largest barrier to digital growth – demons of the past, digital silos & evangelism

February 17, 2008 at 3:44 am | In Digital thinking, Evangelism, Infrastructure, Innovation, Integration, Segmentation, Strategic planning, Traditional | No Comments

Many digital evangelists claim the problem is that everyone else doesn´t get it!! They are partly right, but at the same time they are blind to their own ignorance and weaknesses.

The most successful digital minds are one that can either cross both the traditional and emerging worlds or partner with a mentor that can help them focus and articulate their value.

 90% of what digital evangelists claim that they are inventing – has actually already been done in the traditional world. Like naïve teenagers, they discover something (e.g. a remake of a Rolling Stones song), thinking it new, give it a name of their own and adopt it as their own groundbreaking innovation.

The problem is that digital evangelists not only disrespect historical marketing theory, but they have deliberately kept anyone (e.g. a grey hair mentor) in the dark and at arms-length. In fact, they have been guilty in many respects of ‘Reinventing the wheel’ because of the barriers that they have placed have stopped them learning from the elders of the ‘communications tribe’. In these times, where digital thinking transcends the digital mediums, it may be in the digital evangelists to be a bit more humble and sign a peace treaty.

Sure, the traditional establishment hasn´t made it easy for this seemingly disruptive splinter group. The demons of past battles still haunt the minds of digital journeymen. Likewise, the partying and arrogance prior to the digital bubble bursting and premature claims that ‘everyone associated with traditional communication are irrelevant and dying’, have left deep seated rift between the traditional and emerging communication worlds.

When an industry is growing, it makes sense to separate and concentrate efforts in a silo to achieve a sense of critical mass.  The problem is, as the pie grows, particularly in an extremely dynamic environment where training always plays a back seat to delivery, if you don´t reintegrate, there simply aren´t enough people to do the required work.

It is time that the ‘digital thoroughbreds’ start feeling a little more self-confident and start adopting and recruiting ‘digital immigrants’ people to do the work so that they can move forward and do what they do best – attack the critical problems facing communication: innovate and build conversation infrastructure. There is no doubt that digital thinkers will rule, but in this new world built upon collaboration and co-opetition, let´s hope that we all can find a way to heal the wounds, collectively swallow our pride and act as the mature leaders that our clients and customers need.

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