In December, Media Sense started an online community on LinkedIn. Called Media Minds, our Group is a forum for expressing, exchanging and commenting on current and emerging issues touching the global media industry.

The group is intended as a collaborative dialogue with those who have a genuine passion for the sector, and who strive for better media outcomes and positive change.

Members of Media Minds work for media owners, media and advertising agencies, brand owners, media consultancies and media regulators. The Group now numbers over 400 members from around the world.

At the end of our first month as a community, and as a way of saying “thank you” to our members, we produced a digest of the 3 key topics that got people talking, plus the 5 most read stories by the group.

We hope you enjoy what the group had to say….

MEASURE FOR MEASURE

The contentious issue of metrics created heated debate this month. Asked to comment on the notion that applying “old-media” metrics to digital channels was a retrograde step, group members argued for and against panel methodologies.

Others disagreed over whether media comparability is essential to encourage marketing directors to buy digital for brand messages. At the heart of the argument for comparability was the proposition that marketing directors struggled to relate CPAs and CPMs to GRPs and coverage numbers they were used to.

Those opposed to this point of view argued that digital is such a different place – with its niche target audiences and deeper engagement – that it needed its own bespoke measures. Conversely some argued that current digital measures were so performance-based that anything that didn’t deliver immediate results was “optimized” off the schedule by many advertisers.

Finally there was a call to recognise that all measures of reach and frequency were flawed and should be regarded as merely a proxy for media’s ability to change the way consumers actually behave. The question of what to measure and how to measure it has never been more pertinent.

MediaSense thinks : In the future, nearly all ads will be “served” in some way. Performance-based metrics will therefore overwhelm old survey-based metrics. The definition of “performance” will become more customised, and this is the real challenge and opportunity for practitioners and their clients.

THE AIRTIME SQUEEZE

Regulators in several markets are concerned about the long-term health of local broadcast media companies.In France, the government is calling for an online super-tax for redistributing media wealth. In Italy, pay channels have to cut in the amount of advertising minutage they offer from this month, as it is recognised that they have “less need of advertising funding”.

Meanwhile in the UK, media regulator Ofcom’s proposals to reform the CRR mechanism that controls how the market’s biggest commercial broadcaster ITV sells its airtime included – for the first time – the ability to limit the amount of time TV sales houses actually sell. This was backed by soon-to-depart C4 boss Andy Duncan, who argued that TV channels should be allowed to restrict supply in order to keep prices high.

Group members observed that such moves would fatally undermine the CRR mechanism as a whole and suggested that perhaps it was time to be rid of the whole thing.

MediaSense thinks: There has been a considerable shift in power away from advertising-only models to hybrid models, which regulators have been slow to appreciate. The CRR is not serving the long-term health of the UK TV industry and needs to go. The termination date should be set at January 1st 2012, to allow advertisers, agencies and ITV competitors to prepare.

ADVERTISING GOES GLOBILE

Battle is set for the mobile space as Google and Apple go head to head, with the former launching its first phone and the latter buying mobile ad network Quattro Wireless. Other acquisitions of note included the buy up of Ring Ring Media by Amobee.

The appeal of new technology for brands was highlighted in the UK by the fact that new VOD platform SeeSaw – which will carry content from the BBC – is supported by ads from Cadbury, Nivea and Sainsbury.

The big hype of the month, however, was the launch of the iPad, Apple’s attempt to create a new segment in the portable media space. Some group members sardonically noted Apple’s track record in helping the music business out of its digital malaise and were skeptical as to whether it would benefit the print industry but others were more positive about the benefits. Time – and sales – will tell.

MediaSense thinks: Mobile devices will soon start to devour the ad revenue cake. The drivers will be the combination of mass penetration with CRM analytics, but also the booming applications market. This is the next land-grab for agencies and technology companies.

MOST READ ARTICLES

1. Kantar lunches new media unit
2. Aviva appoints Zenith
3. EDF appoints MPG
4. COI appoints Group M
5. Aegis expands into China

Posted Monday 8th February 2010