Tag Archives: Brand

The Linear TV slow death. OTT/ CTV in, Linear TV out

Are you a cord cutter? Well, you are not alone. New research from eMarketer projects cable, satellite and telecom TV industry is on track to lose the most subscribers ever. This year, over 6 million U.S. households will cut the cord with pay TV, bringing the total number of cord-cutter households to 31.2 million.

I was an early Netflix adopter and loved it. It was convenient versus the alternative – a trek to the local Blockbuster. Boring. Getting a disc delivered in the mail encased boldly and unmistakably in a red envelope was a marquee moment now forever stamped in entertainment history. Movie entertainment suddenly had became affordable and convenient. Soon, streaming movies became possible with bandwidth infrastructure advances. Today, challenged with an abundance of viewing options, how the average person consumes TV content has changed immensely, and is expected to maintain its trajectory.

COVID Related Outcomes

The pandemic has revealed some brand new realities, accelerating adoption in unexpected ways in its wake. Technologies which have benefited from this unexpected boon are multi-platform gaming, Streaming services and gaming have done well. The leading Multi-player gaming communications facilitator ‘Discord’ has done brilliantly. Its revenues were up to $120M in 2020 from $70 in 2019 at a 188% clip. Streaming is an outright winner.

Zoom has become the new generic for conference calling. Memory recall – Remember Xerox. It used to be the generic for Copiers, couple of decades ago. The term ‘Streaming’ has become synonymous with watching movies and shows on Smart TVs, Roku, Apple TV, Chromecast and others.

Brands have noticed these changes and have begun to tweak their marketing mix & budget allocations with a focus on OTT/CTV to maximize ROAS (Return on Ad Spend). Linear TV continues to fragment as OTT/CTV advertising surges with near uninterrupted audience attention. Globally, new user penetration is moving at the +7% yoy clip with the United States in the lead

Linear TV is being challenged as a result of a ∆ in content consumption, abundance of supply, choice of streaming devices, global demography ∆’s and GenY and Z viewing habits. It is a global phenomenon.

Adtech Terminology

So what does this all mean to CMOs? First, an Adtech TV terminology clarity and recall in this fragmenting TV landscape –

What is Linear TV?

Linear TV is a traditional system in which a viewer watches a scheduled TV program at the time it’s broadcast and on its original channel. 

It also can be recorded via DVR and watched later. 

What is OTT? (Over the Top)

OTT is the delivery of TV content via the internet over the standard, closed TV system. 

Users are not required to subscribe to traditional cable or a satellite provider to watch TV content. 

Typically, video is delivered in a streaming or video on demand (VOD) format.


Popular OTT services include Netflix, Hulu, and Amazon Prime. Mass media and entertainment conglomerates are also launching their own OTT services such as Disney+, HBO Max and NBC’s Peacock.

What is a CTV? (Connected TV)

A CTV is a device that can connect to a TV or a smart TV that facilitates the delivery of streaming video content.

Say hello to Roku, Apple TV, Xbox, PlayStation, Amazon Fire TV, Chromecast, and more.

Programmatic AdTech OTT/CTV Supply Side realities Brand Marketers need to know

  • CMOs/marketers are well aware that Cross-screen measurement supported by Martech identity platforms, digital, linear, OTT, and CTV can all be efficiently attributed.
  • Programmatic TV spend ROAS (Return on Ad Spend), my trusted KPI performs better on OTT/CTV versus linear TV
  • There is a shift from Linear TV (Networks like NBC, CBS, etc) viewing to OTT/CTV devices. Roku has been a pioneer.
  • Apple TV is the device to watch for marketers in 2021. Apple TV+ has quietly built a solid programming lineup with more in the pipeline. With $1 billion invested, reasonably priced at $4.99/month it has a captive audience on its devices
  • OLV (Online Video Impressions) – Users view pre-roll OLV creatives with a high rate of tolerance. In fact, only 17% of users feel that pre-roll ads are interruptive. In the OLV setting, pre-roll offers a locked-in experience for the users where there is a universally accepted transaction of watching an impression per piece of video, allowing brands to get more closely associated with the content.

Making the Global AdSpend Case to the Board / CMO / CFO

Hello Brands, especially Global brands check out the Global OTT segment numbers to support your marketing mix, budget allocations and forecasts.

  1. OTT Video Global users stand at 2,280 million with a +7% yoy growth
  2. Revenue in the OTT Video segment is projected to reach US$171,772m in 2021
  3. Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 10.0%, resulting in a projected market volume of US$251,879m by 2025.
  4. User penetration will be 30.3% in 2021 and is expected to hit 34.8% by 2025
  5. The largest segment is OTT Video Advertising with a market volume of US$89,459m in 2021
  6. In global comparison, most revenue will be generated in the United States (US$60,734m in 2021)

#SSP (Supply Side Platform) History

Back in the day, publishers sold space to advertisers via direct sales by finding advertisers willing to display their ads on their websites. However, as the display-ad industry grew, a completely new problem emerged. Direct sales brought about the problem of ‘fill risk‘ – Oops, unsold inventory. To optimize and fill the gap a technological platform was born that would efficiently sell remnant inventory and automate the process. Welcome the ad network to the batting lineup. This pinch hitter served as a broker between publishers and advertisers. As more ad networks emerged, the space got crowded and the decisioning process got complicated. Next up on the plate to even the score – ‘Network optimizers‘ emerged as super Adtech platforms

Recall the ‘fill risk‘ and the unsold inventory issue. Now these super AdTech platforms were making decisions about which ad network would likely deliver the best performance – i.e. sell the publisher’s inventory at the best price.

In the late 2000s real-time bidding (RTB) emerged. As a result of RTB the ‘Network optimizers‘ shape shifted in to a brand new type of AdTech platform – the supply-side platform (SSP). This evolutionary technology could now allow publishers to optimize yield by simultaneously connecting their inventory to multiple ad exchanges and demand-side platforms (DSPs).

The following image recaps the players in the #Adtech space and the machinery that churns the wheels –

Looking for a SSP for your OTT/CTV spend? Think before you leap. Evaluate these 4 possible traps.

  1. Ad fraud (invalid traffic): Ad fraud, or invalid traffic (IVT), in programmatic OTT/CTV advertising remained around 20% throughout 2020
  2. Pricing – Some SSPs employ mandatory traffic validation procedures, where they scan all of the publisher’s traffic along with IVT (Invalid Traffic) at an additional cost (~ 0.1$/CPM value).
  3. Middlemen – There are situations when a publisher has an agreement with one SSP that is connected via some kind of provider (let’s call it X platform). The agreed-upon is CPM $18, but via X platform they see only $12, meaning the platform is pocketing ~33% (!). This doesn’t even include the fees that a tech vendor takes taking from the DSP.
  4. Negotiating Contracts for Impressions – For example, for 1,000 impressions, the initial rate is $21 (at the demand-side platform [DSP] stage). Then an SSP cuts a 17% fee, so the rate value becomes $18, then the X-platform charges a direct connection fee of 33% and so the rate becomes $12, and the IVT tool fee (Invalid Tool Fee) – a bot traffic detector adds an extra $0.3, so the final value is a paltry $11.7; The actual net CPM they’re getting is $11.7 from the initial $21 that the DSP is bidding, so overall, the middlemen are taking fees of 50% of the total.

These are some reputable SSPs identified by the folks at #Pixelate.

2023 Marketing Mix

The space is truly dynamic and fluid waiting for the next disruptor to step in just when you thought you there was stability. It is near end of COVID and the 2023 Marketing mix is going to look a lot different for the budget planning cycle. Do your research and work with trusted partners.

The emotions generated by colors

#BRAND #emotion#influence#nudge#brandexperience#brandinspiration all originated with flowers and dyes.

The ‘Temperamenten-Rose’ compiled by Goethe and Schiller in 1798/9.

#contemporaryart#art#creativity#fashion#creativity#illustration#photography#illustration#illustration#illustration#photography#graphicdesign#graphicdesign#creative#teachers#artists#artwork#artwork#artwork#artwork#artist

  • The diagram matches twelve colors to human occupations or their character traits, grouped in the four temperaments:
  • choleric (red / orange / yellow)
  • tyrants, heroes, adventurers; sanguine (yellow / green / cyan)
  • hedonists, lovers, poetsphlegmatic (cyan / blue / violet)
  • public speakers, historians, teachers; melancholic (violet / magenta / red): philosophers, pedants, rulers.

The Psychology of Color in Brand Marketing

Color psychology is the study of how colors determine human emotions and behaviors. We react to colors based on a complex series of interactions between our personal tastes, our family upbringing, and our cultural backgroundColor can affect perceptions in subtle ways; for example, it can enhance or detract from the way that food tastes. The right colors can even enhance how effective pills and placebos are; blue is used for calming or sleep-inducing pills whereas red or yellow are usually used for stimulantsEvery brand and business uses colors deliberately in their product designs, packaging, advertisements, and websites. High-level graphic design relies in part on the ability to select colors that work with the brand and the company’s mission. The psychology of color can and must be used to trigger the right responses from consumers, and this is part of the graphic designer’s goal.Great graphic design also anticipates cultural differences in the way colors are perceived. The same color can mean very different things to different audiences; for example, in most cultures yellow has a bright, cheerful connotation, but in China it may have vulgar or adult connotations. In the US white symbolize purity and is often used for bridal branding, but white is a mourning color in Japan, India, China, Korea, and the Middle East. The bottom line here is to know your audience and choose wisely.

A lot has been studied about how color influences the brain to react. Different color have different outcomes.

How people respond to different color stimuli varies from person to person. In a U.S. study, blue is the top choice at 35%, followed by green (16%), purple (10%) and red (9%). Blue and green may be due to a preference for certain habitats that were beneficial in the ancestral environment as explained in evolutionary aesthetics .Orange, yellow, and brown are the least popular colors, respectively.

https://www.youtube.com/watch?v=OHa922t7DmQ

Color preference may also depend on ambient temperature. People who are cold often select warm colors such as red or yellow, while people who are hot favor cool colors like blue and green.[6 Introverted individuals are also found to be more attracted to cool colors, while extroverts prefer warmer colors.

Gender has also shown to influence how colors are received, with some research suggesting women and men respectively prefer “warm” and “cool” colors. Black, white, and gray, as tones or shades, were shown to be received more positively by males than females.

Humans are visual beings. The brain processes pictorial information 60,000 times faster than it processes text. In addition, 90 percent of the information sent to our brains is visual. And an important component of that visual information is color.

Color psychology, the study of how color affects human behavior, is a hugely debated topic. The debate about the specific ways color affects humans is as old as color itself. Some groups even dismiss color psychology completely because the individual perception of any color is dictated largely by personal experiences and interactions with the color.

But color does have an impact on our lives. For example, in marketing and branding, color plays a prominent role in memorability: Think of Coca-Cola’s characteristic red, or the yellow golden arches of McDonald’s.

For brands, paying attention to color psychology and applying what holds true for a majority of the populace can help in getting an edge in a highly competitive marketing scene.

Let’s take a look at some of the ways brands can use the psychology of color to their advantage.

Creating a visual identity

As mentioned earlier, one of the important ways brands use color is to create a visual identity for themselves. This helps to differentiate the brand from that of the competition. It also helps with memorability.

How do brands go about doing this? The first step is to identify the core components of your brand personality.

In her publication, Dimensions of Brand Personality, Stanford University professor and psychologist Jennifer Aaker identified five core dimensions that play a role in a brand’s personality: sincerity, excitement, competence, sophistication and ruggedness.

After identifying elements that represent your brand, you can then go about creating a color scheme that communicates those elements. Studies such as Interactive Effects of Colors have proven that it is important for a brand color to “fit” what is being sold.

Appealing to specific audiences

One of the most important lessons from color psychology is that people respond differently to color based on their gender, age and cultural background.

Research has established that blue is the most popular color for both men and women. Then women are particularly inclined toward pink as men are toward blue. Big brands have wielded this information to create powerful brands.

A good example is Victoria’s Secret. Its characteristic shade of pink was not just chosen at random—it is a favorite of the company’s target audience: women. The color also reinforces the image of the brand personality; pink is an “elusive” color, and its lighter shades are barely visible. Using pink not only plays on the “secret” in the brand name; it also shades the product, underwear.

Age is also known to influence color preferences. Whereas younger audiences might be drawn to bright, youthful colors, older audiences might prefer cooler shades.

Understanding how culture affects color perception is also important for brands targeting international markets. A color considered acceptable in one culture may be a complete turn-off in another.

By choosing colors that the audience is most receptive to, brands can get an edge over their competitors.

Associating your brand to a specific mood

Another important tip from color psychology is that certain colors put people in a specific mood.

Brand strategist Thomson Dawson explains it this way: “All colors create a specific frame of mind for people—it’s called a mood. Having people be in the most receptive mood is essential for their engagement with your brand. Color sets the mood of brand expression and, more important, creates mental associations to the meaning of your brand within the context of the world it lives in.”

Research has shown that the color red causes people to react with greater speed and force, which might prove useful during athletic activities. Little wonder car companies like Ferrari and Lamborghini combine red and black to create a balance between the powerful and the luxurious.

Coca-Cola also takes advantage of the effect of the color red. For some people, a mere sign of the characteristic red color is enough to get them thirsty.

Psychologist Andrew J. Elliot tested to see if the color of a person’s clothing could make them appear more sexually appealing. He found heterosexual men and women dressed in red were significantly more likely to attract romantic attention than women dressed in any other color. The color did not affect heterosexual women’s assessment of other women’s attractiveness. Other studies have shown men dressed in red appeal to heterosexual women.

Contrary to the adult fondness for blue, in children yellow is the most favored color, perhaps owing to its associations with happiness. However, children like colors they find to be pleasant and comforting are changeable, while adult color preference is usually easily influenced.

Cultural background has been shown to have a strong influence on color associations. Studies have shown people from the same region, regardless of ethnicity, will have the same color preferences. Common associations connecting colors to a particular emotion may also differ cross-culturally.

For instance, one study examined color relationships with emotion with participants in Germany, Mexico, Poland, Russia, and the United States; finding that red was associated with anger and viewed as strong and active

However, only Poles related purple with both anger and jealousy while Germans linked jealousy with yellow. This highlights how the influence of different cultures can potentially change perceptions of color and its relationship to emotion.

Increase conversions and click-through rates

One area where the psychology of color is particularly relevant in marketing is in the use of call-to-action buttons. Several studies have been conducted on the importance of choosing the right color for call-to-action buttons. The reason for the attention is simple: The aim of marketing is to get the consumer to take the desired action. On the web, a call-to-action button is a gate to the desired action.

An example is a study by Hubspot, which A/B tested a green button vs a red button. Again, red won. The red button outperformed the green button by 21 percent.

This in no way means that every brand should use red for their CTAs, but it does mean that paying attention to CTAs and making sure that they are prominent can determine whether they get the click or not.

This also applies to social media campaigns. Whether it’s a photo or video shared, the text or area showing the required action should stand out and convey a sense of urgency.

Conclusion

Color is a powerful visual component. Brands can not only apply the color psychology in differentiation, it can be used to appeal to specific audiences and elicit certain responses from their prospects. One thing to keep in mind, though, is that the right combination of colors for any brand can only become evident through consistent testing.

A product manager who thinks and acts like a CEO – the future is here

The role of the product manager is expanding due to the growing importance of data in decision making, an increased customer and design focus, and the evolution of software-development methodologies.

Product managers are the glue that bind the many functions that touch a product—engineering, design, customer success, sales, marketing, operations, finance, legal, and more. They not only own the decisions about what gets built but also influence every aspect of how it gets built and launched.

Unlike product managers of the past, who were primarily focused on execution and were measured by the on-time delivery of engineering projects, the product manager of today is increasingly the mini-CEO of the product. They wear many hats, using a broad knowledge base to make trade-off decisions, and bring together cross-functional teams, ensuring alignment between diverse functions. What’s more, product management is emerging as the new training ground for future tech CEOs.

As more companies outside of the technology sector set out to build software capabilities for success in the digital era, it’s critical that they get the product-management role right.1

Why you need a product manager who thinks and acts like a CEO

The emergence of the mini-CEO product manager is driven by a number of changes in technology, development methodologies, and the ways in which consumers make purchases. Together, they make a strong case for a well-rounded product manager who is more externally oriented and spends less time overseeing day-to-day engineering execution, while still commanding the respect of engineering.

Data dominates everything

Companies today have treasure troves of internal and external data and use these to make every product decision. It is natural for product managers—who are closest to the data—to take on a broader role. Product success can also be clearly measured across a broader set of metrics (engagement, retention, conversion, and so on) at a more granular level, and product managers can be given widespread influence to affect those metrics.

Products are built differently

Product managers now function on two speeds: they plan the daily or weekly feature releases, as well as the product road map for the next six to 24 months. Product managers spend much less time writing long requirements up front; instead, they must work closely with different teams to gather feedback and iterate frequently.

Products and their ecosystems are becoming more complex

While software-as-a-service products are becoming simpler for customers, with modular features rather than a single monolithic release, they are increasingly complex for product managers. Managers must now oversee multiple bundles, pricing tiers, dynamic pricing, up-sell paths, and pricing strategy. Life cycles are also becoming more complex, with expectations of new features, frequent improvements, and upgrades after purchase. At the same time, the value of the surrounding ecosystem is growing: modern products are increasingly just one element in an ecosystem of related services and businesses. This has led to a shift in responsibilities from business development and marketing to product managers. New responsibilities for product managers include overseeing the application programming interface (API) as a product, identifying and owning key partnerships, managing the developer ecosystem, and more.

Changes in the ‘execution pod’

In addition to developers and testers, product-development teams include operations, analytics, design, and product marketers that work closely together in “execution pods” to increase the speed and quality of software development. In many software organizations, the DevOps model is removing organizational silos and enabling product managers to gain broader cross-functional insights and arrive at robust product solutions more effectively.

Consumerization of IT and the elevated role of design

As seamless, user-friendly consumer software permeates our lives, business users increasingly expect a better experience for enterprise software. The modern product manager needs to know the customer intimately. This means being obsessed with usage metrics and building customer empathy through online channels, one-on-one interviews, and shadowing exercises to observe, listen, and learn how people actually use and experience products.

Three archetypes of the mini-CEO product manager

There are three common profiles of the mini-CEO archetype: technologists, generalists, and business-oriented. These three profiles represent the primary, but not the only, focus of the mini-CEO product manager; like any CEO, they work across multiple areas (for instance, a technologist product manager will be expected to be on top of key business metrics). Most technology companies today have a mix of technologists and generalists (Exhibit 1).

As these three archetypes emerge, the project manager is a fading archetype and seen mainly at legacy product companies. The day-to-day engineering execution role is now typically owned by an engineering manager, program manager, or scrum master. This enables greater leverage, with one product manager to eight to 12 engineers, versus the ratio of one product manager to four or five engineers that has been common in the past.

Common themes across the three archetypes

An intense focus on the customer is prominent among all product managers. For example, product managers at Amazon are tasked with writing press releases from the customer’s perspective to crystalize what they believe customers will think about a product, even before the product is developed. This press release then serves as the approval mechanism for the product itself.

There are, however, differences in how product managers connect with the users. While a technologist may spend time at industry conferences talking to other developers or reading Hacker News, the generalist will typically spend that time interviewing customers, talking to the sales team, or reviewing usage metrics.

A new training ground for CEOs

Modern product managers are increasingly filling the new CEO pipeline for tech companies. Before becoming the CEOs of Google, Microsoft, and Yahoo, Sundar Pichai, Satya Nadella, and Marissa Mayer were product managers, and they learned how to influence and lead teams by shepherding products from planning to development to launch and beyond. Such experience is also valuable beyond tech: PepsiCo CEO Indra Nooyi started her career in product management–like roles at Johnson & Johnson and Mettur Beardsell, a textile firm.

While today such a background remains rare among CEOs, product-management rotational programs are the new leadership-development programs for many technology companies (for example, see the Facebook Rotational Product Manager Program, the Google Associate Product Manager Program, and the Dropbox Rotation Program). Any critic of the analogy between product managers and CEOs will point out that product managers lack direct profit-and-loss responsibilities and armies of direct reports, so it is critical for product managers with ambitions for the C-suite to move into general management to broaden their experience.

The product manager of the future

Over the next three to five years, we see the product-management role continuing to evolve toward a deeper focus on data (without losing empathy for users) and a greater influence on non-product decisions.

Product managers of the future will be analytics gurus and less reliant on analysts for basic questions. They will be able to quickly spin up a Hadoop cluster on Amazon Web Services, pull usage data, analyze them, and draw insights. They will be adept at applying machine-learning concepts and tools that are specifically designed to augment the product manager’s decision making.

We anticipate that most modern product managers will spend at least 30 percent of their time on external activities like engaging with customers and the partner ecosystem. Such engagement will not be limited to consumer products—as the consumerization of IT continues, B2B product managers will directly connect with end users rather than extracting feedback through multiple layers of sales and intermediaries.

Courtesy – McKinsey