I came across this link which sums up the latest advertising technics used in 2010. The same website has anticipated 6 predictions in Digital Advertising for 2011.
Can't wait to see what is really waiting for us in 2011.
Merry X-mas
Dec 23, 2010
Dec 5, 2010
All The Lonely People... Where Do They All Groupon?
Straying along with the famous song by The Beatles, now all the lonely people will be able to socialize while shopping, the apparent two most desirable things of the youngest generation. Groupon's undeniable, innovative idea has made the company one of the fastest growing in the technology industry. Even the great white shark of cloud computing and internet search has been loudly stalking this new juicy prey, which has reported high rate earnings since its launch around two years ago.
With Google's interest in buying the Chicago-based company, Groupon has been dealing with a lot of publicity in the last week simply because of Google's bid in acquiring this successfully group buying activity. Thus, this mediatize advertising may have helped the local company increase their status and draw in some new customers eager to check out what the fuzz it's all about.
However, according to the Chicago Breaking Business and Bloomberg, Groupon has rejected Google's offer, which was approximately around $5.3 billion with a $700 million earnout. While it is not the first time that an offer from the giant firm has been turned down (see Google and Dodgeball), many people believed that an IPO is a better solution for investment and equity share than a buyout.
Why would a relatively small company like Groupon would decline such an offer from Google? Most of these rejections are primarily due to product concern, that after an acquisition, the prosperity of the business will not be the same. That's right, since we're talking about Google not just any regular company with wealthy resources, that prosperity most probably could've mean doubling its numbers in just a year. But the business its doing more than fine as it is right now. According to AllThingsD, the group buying company is generating almost $2 billion a year, not the $500 million figure that was widely reported, which could have been another reason why the offer was rejected, that Groupon's worth was not being fully considered. Also, that offer would've made the three co-founders practically billionaires, pretty sure that when they started the firm they would've never predicted themselves that wealthy in just two years. Or maybe they just didn't like the sound of their company being called Google Coupon or Google's Groupon.
Whatever the reason was, there were some unquestionable benefits for Groupon through the buyout that made declining the offer a tough decision. First, Groupon and its second closest competitor LivingSocial are reportedly spending more than $1 million a month to advertise through Google. If acquired, it would have significantly reduced operating costs through the giant's search inventory (just as YouTube did), even receiving a more conspicuous position through the search results. Second, more advertising means more customers' attention so probably expect to gain more profits. Even LivingSocial, with just 2 million users less than Groupon, could have benefited by making the group buying business more attractive for others company to do the same for them. But Groupon is the one making the finest deals and drawing more customers:
So Groupon may have a lot to debate about where will they be positioning themselves in 2011. Maybe they'll wait for a new adjusted offer from Google (or another monster firm like Facebook) or even move for an IPO. But one thing its for certain: it is an up-and-coming business, and indifferently of its future location, all the lonely (and not so lonely) people will still have their chance to get their Groupon.
References:
What Google’s Acquisition of Groupon Would Mean for LivingSocial by Lauren Indvik.
By Traffic, Groupon Is Ten Times Bigger Than Its Nearest Competitor by Jolie O'Dell.
Groupon Turns Down Google’s $6 Billion Offer by Ben Parr.
However, according to the Chicago Breaking Business and Bloomberg, Groupon has rejected Google's offer, which was approximately around $5.3 billion with a $700 million earnout. While it is not the first time that an offer from the giant firm has been turned down (see Google and Dodgeball), many people believed that an IPO is a better solution for investment and equity share than a buyout.
Why would a relatively small company like Groupon would decline such an offer from Google? Most of these rejections are primarily due to product concern, that after an acquisition, the prosperity of the business will not be the same. That's right, since we're talking about Google not just any regular company with wealthy resources, that prosperity most probably could've mean doubling its numbers in just a year. But the business its doing more than fine as it is right now. According to AllThingsD, the group buying company is generating almost $2 billion a year, not the $500 million figure that was widely reported, which could have been another reason why the offer was rejected, that Groupon's worth was not being fully considered. Also, that offer would've made the three co-founders practically billionaires, pretty sure that when they started the firm they would've never predicted themselves that wealthy in just two years. Or maybe they just didn't like the sound of their company being called Google Coupon or Google's Groupon.
Whatever the reason was, there were some unquestionable benefits for Groupon through the buyout that made declining the offer a tough decision. First, Groupon and its second closest competitor LivingSocial are reportedly spending more than $1 million a month to advertise through Google. If acquired, it would have significantly reduced operating costs through the giant's search inventory (just as YouTube did), even receiving a more conspicuous position through the search results. Second, more advertising means more customers' attention so probably expect to gain more profits. Even LivingSocial, with just 2 million users less than Groupon, could have benefited by making the group buying business more attractive for others company to do the same for them. But Groupon is the one making the finest deals and drawing more customers:
So Groupon may have a lot to debate about where will they be positioning themselves in 2011. Maybe they'll wait for a new adjusted offer from Google (or another monster firm like Facebook) or even move for an IPO. But one thing its for certain: it is an up-and-coming business, and indifferently of its future location, all the lonely (and not so lonely) people will still have their chance to get their Groupon.
References:
What Google’s Acquisition of Groupon Would Mean for LivingSocial by Lauren Indvik.
By Traffic, Groupon Is Ten Times Bigger Than Its Nearest Competitor by Jolie O'Dell.
Groupon Turns Down Google’s $6 Billion Offer by Ben Parr.
Nov 28, 2010
Updating the Status on Social Media
Isn't it interesting when online search engines pops out web links to tweets and Facebook pages? Even at the beginning of the results? The Internet has become the ultimate social exploiter of information, with so many people thriving in online synergy and showing no signs of declination. Networking is always more stimulating when responses are made lighting fast and travel vast distances.
Without any doubt, social media is offering enhanced ways that companies can use to comunicate and interact with its customers to sell their products and services, especially helpful to small businesses, which may not be able to afford giant billboard ads on airports and highways but can certainly create a new Facebook, Twitter or LinkedIn account for free (yes, for free). It is fair to ask how, when and why is social media going to affect sales and attract new customers, however it is hard to find the right answer to these questions because it seems so particular in the way people handle their online profiles.
Christine Romans is promoting a some smart tips to help business owners decide what is best attitude towards social networking and providing a thoughtful insight on the question: "How can I monetize social media?":
Without any doubt, social media is offering enhanced ways that companies can use to comunicate and interact with its customers to sell their products and services, especially helpful to small businesses, which may not be able to afford giant billboard ads on airports and highways but can certainly create a new Facebook, Twitter or LinkedIn account for free (yes, for free). It is fair to ask how, when and why is social media going to affect sales and attract new customers, however it is hard to find the right answer to these questions because it seems so particular in the way people handle their online profiles.
Christine Romans is promoting a some smart tips to help business owners decide what is best attitude towards social networking and providing a thoughtful insight on the question: "How can I monetize social media?":
- An online presence is taken for granted nowadays, customers are expecting it. "If the offer is shunned you might as well be walking on the sun".
- The best feedback is provided by the customers themselves. They like to be heard and responded so it is good to "listen to your customers".
- Instead of regretting a "Mamma Mia" lost show because of a snowstorm, a broadway theater offered (through Twitter) discounted tickets for those who were able to walk and endure the bad weather. The result: all the seats were sold out. A risky, but agil move that worked.
- Grab the attention of the customers, not just by using promo and discount codes but with "free advice and interesting links".
- Competitors are also using social media to better position themselves in the industry (or at least die trying) so monitor them and see how well they perform.
- "Cultivate a consistent online persona" with fast and bright responses.
- Carefully and seriously select the right person to represent the company's business online (a frequent mistake in small businesses is made when selecting the first available intern to perform the job).
It almost feels as if social media is the right key for success, but eventually (maybe more sooner that later) it will become more of a requirement than a success factor. As the online networking usage is intensifying everyday, people are indeed expecting more and more out of just status updates, tweets, company profiles, blogging and RSS feeding and even small companies should begin considering new approaches if they want to keep on rising.
Some significant trends occurring right now in social media include the use of mobile barcodes scanners to get access to relevant information such as price comparison in different retailers, special promotions and availability of a certain product. With a simple snapshot from your mobile camera, barcodes such as QR codes are quickly and easily scanned, and the information is displayed immediately on a mobile web browser so you can begin reading and making online transactions.
Another popular growing trend is the group buying system at Groupon, which in last August partnered with the clothing retailer Gap to sell $50 worth in merchandise for $25 redeemable in stores in order to increase sales and draw in new customers. It caused a high impact on Gap sales, even temporarily bringing down the Groupon site because of the significant success of the offer (making 10 Groupon purchases every 10 seconds). Others include the use of intelligent Q&A services such as Quora and customer checkin services and rewards system with Foursquare.
Social media is everywhere and it is definitely a cheap but exhausting opportunity to create and sustain successful businesses, that small companies shouldn't ignore if they want to stay competitive. It deprives so much valuable time that it is not a simple choice to invest 8 hours a day just facebooking, grouponing and tweeting and it is incredibly difficult to determine a tangible response in terms of revenues for the use of online social networking. It involves so many "it depends" answers, that it has become a wait and see kind of deal. But if everyone is using it, why aren't you?
References:
Using Social Media to Improve Your Business by Christine Romans, CNN.
5 Huge Trends in Social Media Right Now by Jennifer Van Grove, Mashable.
Nov 21, 2010
Neural Nirvana of Film Advertising
Marketing a movie is an important operation. The film industry is a very competitive environment and sometimes it's hard for a person to decide what film will be interesting to watch. To balance that decision in favor, film studios frequently creates theatrical trailers or spots to let people experience a full glimpse of a motion picture. With only a few minutes of length, film marketers must intelligently tease the audience by combining specific scenes and messages that would effectively appeal to a person's intrigue.
But people react to movie trailers in different ways, some may laugh, cry, scream while others don't. So how to know which parts of the trailer is engaging enough attention through emotions and which don't? This is when Neuromarketing comes in handy. Measuring the brain response when watching a movie trailer is the next big step for achieving efficiency in advertising. It is practically making Hollywood entertainers' biggest dream come true: reading people's mind to find that neural nirvana and attract them to buy a certain film.
A company called MindSign Neuromarketing has established a unique business with an interesting demand. Independently, they own the only neuromarketing facility outside of a university R&D labs. Their business is oriented to analyze brain stimuli and collect data through the use of funcional Magnetic Resonance Imaging (fMRI), outside of conventional medicine purposes, when watching a particular ad such as a poster, a Bluray Disc packaging and especially a movie trailer.
The first studies on this field where coined as Neurocinematics by Uri Hasson, a Princeton University academic, who began using fMRI to observe brain activity while watching a variety of films. At MindSign, this study is known as Neurocinema and is redefining the orientation of film advertising; letting trailer production companies and marketing representatives know what kind of emotions are generating their trailers, with how much intensity and when. By using fMRI, a person's brain is observed using a state-of-the-art scanner, within a specific time frame, when rushes of blood and oxygen are stimulated through the sense of personal meaning and interest. Then, they compare results with a database of brain responses to collect groups of data and analyze what people are thinking. In addition, they have a program named TV Ad Re-Editing, where they can sort out the parts that are emotionally attracting from the ones that are not in order to release a even effective trailer. So it's not just about throwing a bunch of data into a client's hands, actually a change is directly applied, improving the emotional capabilities of the trailer right away.
Here's an sample of a MindSign engine named BrainMovie, which records brain reactions in real time, when a subject was studied while watching a trailer from the 2009 blockbuster hit Avatar.
However at $2000 dollars per subject per hour (and even more expensive if performed outside of San Diego, CA where MindSign is based), it is a business not affordable to everyone and more oriented to commercial than independent projects. But results can be obtained within hours and if several thousand dollars are enough to help make millions of dollars more, MindSign is an option that as a film producer executive is definitely worth consider. Besides, how is it that lame movies find their way into breaking box office records and home media sales? By building an irresistible offer that audiences can't be able to refuse.
References:
Matt Ford, How they make those adverts go straight to your head?. CNN report.
MindSign Neuromarketing official website.
Video of MindSign Neuromarketing on Discovery Science channel.
But people react to movie trailers in different ways, some may laugh, cry, scream while others don't. So how to know which parts of the trailer is engaging enough attention through emotions and which don't? This is when Neuromarketing comes in handy. Measuring the brain response when watching a movie trailer is the next big step for achieving efficiency in advertising. It is practically making Hollywood entertainers' biggest dream come true: reading people's mind to find that neural nirvana and attract them to buy a certain film.
A company called MindSign Neuromarketing has established a unique business with an interesting demand. Independently, they own the only neuromarketing facility outside of a university R&D labs. Their business is oriented to analyze brain stimuli and collect data through the use of funcional Magnetic Resonance Imaging (fMRI), outside of conventional medicine purposes, when watching a particular ad such as a poster, a Bluray Disc packaging and especially a movie trailer.
The first studies on this field where coined as Neurocinematics by Uri Hasson, a Princeton University academic, who began using fMRI to observe brain activity while watching a variety of films. At MindSign, this study is known as Neurocinema and is redefining the orientation of film advertising; letting trailer production companies and marketing representatives know what kind of emotions are generating their trailers, with how much intensity and when. By using fMRI, a person's brain is observed using a state-of-the-art scanner, within a specific time frame, when rushes of blood and oxygen are stimulated through the sense of personal meaning and interest. Then, they compare results with a database of brain responses to collect groups of data and analyze what people are thinking. In addition, they have a program named TV Ad Re-Editing, where they can sort out the parts that are emotionally attracting from the ones that are not in order to release a even effective trailer. So it's not just about throwing a bunch of data into a client's hands, actually a change is directly applied, improving the emotional capabilities of the trailer right away.
Here's an sample of a MindSign engine named BrainMovie, which records brain reactions in real time, when a subject was studied while watching a trailer from the 2009 blockbuster hit Avatar.
However at $2000 dollars per subject per hour (and even more expensive if performed outside of San Diego, CA where MindSign is based), it is a business not affordable to everyone and more oriented to commercial than independent projects. But results can be obtained within hours and if several thousand dollars are enough to help make millions of dollars more, MindSign is an option that as a film producer executive is definitely worth consider. Besides, how is it that lame movies find their way into breaking box office records and home media sales? By building an irresistible offer that audiences can't be able to refuse.
References:
Matt Ford, How they make those adverts go straight to your head?. CNN report.
MindSign Neuromarketing official website.
Video of MindSign Neuromarketing on Discovery Science channel.
Nov 15, 2010
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