Monday, March 03, 2008

Advertisers Become Conductors

McKinsey published a report on the way that technology has changed how businesses interact with each other, specialist suppliers and service providers.

Time was when management theory’s answer used to be that if these activities were contracted out to specialized companies, coordinating them would create excessive "interaction costs": the expense and bother of dealing with outside suppliers.

As an illustration these interactions account for over a third of economic activity in the United States. They exert a potent but little understood influence on how industries are structured, how firms are organized, and how customers behave. They argue that any major change in their level or nature would trigger a new dynamic in economic activity.
Think about advertising. We used to be set up to outsource a minimal amount at the bottom, commodity end of the scale with whole departments set up to deliver a single channel like TV or medium like print.

As the ways to reach our audience tends to the infinite, the cost of interactions tending to zero is incredibly timely. If harnessed correctly could stop many an agency creaking at the sides.
This makes the conductor agency model - the agency acting as a strategic middle man connecting and managing specialist suppliers to deliver - a possibility.

With the cost of interaction zero you could theoretically have departments made up of an indivdual, think

Sunday, March 02, 2008

Report On Joint TV & Computer Usage

Are you reading this whilst watching TV? If so you would be in the majority, 78% U.S. adults go online while watching TV, and more than a third of them do so always or often. Out of these, "Double-dippers” (dumb name) are comprised of adults who enjoy surfing the Internet while watching television. Fully 62% of double-dippers surf the web while watching television for content that is not related to what they’re watching. And 25% of double-dippers go online for information specific to the programming they are currently viewing.

Most commonly, double-dippers who surf the web for related content are looking for more information or color about what they’re watching, be it profiles of the actors (51%), products/services that appeared in or were advertised during the program (40%), or related upcoming events (39%).

Here is an interesting report on the use of using the computer whilst watching TV. Throws up some interesting applications for not only program makers but advertisers - no and not just to go to the online shop or see the making of the ad.
On a related, but side note I saw this viral based on the Ogilvy London Ford TV ad where cars floated away in the sky. JWT Auckland, which has the Ford account in NZ took the release of the original ad one step further by producing this viral which then went onto become a traditional worldwide news story driving viewers back online and breaking records on YouTube, especially in the comments and responses, exactly where you want them.

Two hat tips to Damiano Vukotić.