Media Wastage or Halo Effect!

Taking a brief is an integral part of a client servicing executive's life. I still remember, two questions that I always threw at a prospect or client were:

1. Who is your customer?
2. Who is your competitor?

Thinking about it, I don't think I will ask such fundamental questions, today. But that is not the point. If I was kiddish, I have got juvenile answers, too. The standard response in those days were:

1. Everyone.
2. No one.

Oh my, I would be so impressed with those inputs and scribble them down, mindlessly, on my note pad.

Couple of weeks back, Volkswagen (VW) created quite a buzz, in the real and virtual world, by publishing a talking ad for its to-be-launched Vento, in The Hindu and Times of India. One may find many faults. The sound was not clear, it didn't have a micro-site address...but the point is that certainly it met its objective. It managed to create Awareness, Interest and, if not much of, Desire. 

A few months back, I visited one of the PR agencies that handled VW account. During the discussions, I asked a young bright executive who was on the account whether Polo launch ad was a good. VW had done a newspaper with a hole ad, then. I went on to give the usual spiel that though Times of India was the largest publication, it certainly was not omnipresent and that the media in India is highly fragmented. I further suggested that VW could have considered conducting/sponsoring a major event which would have been inexpensive and managed coverage across all publications.

The young man told me that the Polo ad has created a lot of buzz. I, mentally, dismissed him, but now acknowledge it. And, this time, the Vento ad takes the print ads to another level.

In 2001, after a press meet, Srinivas, a journalist with Digital Age (a technology focused magazine from a splinter group of Express Publication) introduced me to a term which has since then become etched in my memory. He said that the future is for specialist publications. He went on to say that there was an enormous amount of media wastage. Just out of college and still in a soaking up mode, I loved the term. 

Little after that, Digital Age closed down. But I remain fascinated with the idea. Srinivas said that the general dailies were overrated. For a marketer they are such a waste. Logically, if someone wanted to buy a product or service, one would look into a specialist publication. After all, mainlines are, mass media. 

It does make sense at some level. There is no disputing that the prospective buyers of Vento and, certainly, Polo would be covered by Times of India and The Hindu. But are all the readers in the consideration set? 

Polo and Vento are different cars, targeted towards different audience. Their price points are different. Was there an option for VW? Would it make more sense to have advertised for Vento in a business magazine rather than a daily? I have wondered why car brands didn't (now, few do) advertise on Financial dailies? Wouldn't that have been a far more focused approach? 

But I guess these two ads are just launch strategy. The idea was to create a buzz with the topmost media to put in their creative. Exclusivity was the underlining factor. Create the Halo effect!

I am wondering to myself if the concept of media wastage is a waste. If segmentation can be used to be more impactful in communication considering that media options are quite diverse. Or is halo effect more important than wastage?

Marketer's Dilemma!

The Fall of Advertising & PR, And Rise of Social Media

Cliched!

As much as it was when people used to say The Fall of Advertising & The Rise of PR. I remember, when I was doing my MBA, the advertising lecturer had mentioned that the advertising industry in India was worth INR 8000 Cr, that was 1999. Today, after the emergence of PR as another communication tool and predictions of its imminent death, the ad industry is supposed to be worth INR 40000 Cr! Did somebody say fall?

Does that mean PR has failed? No, in fact in the last 10 years (that is the time that I have been in the industry) PR has grown and matured. It is now acknowledged as an important and strategic communication tool. It hasn't killed advertising, though. Both co-exist. Initially, advertising was like the big brother of PR. In the early days, companies who advertised thought editorial coverage was their birth right. Difficult days! But the PR industry has grown from strength to strength. So has the understanding about PR amongst the client community.

Then, can we, with the emergence of social media, though still very nascent, make an aggressive hypothesis - The fall of Advertising & PR and The rise of Social Media?

Consider this. Clay Shirky in his book Here Comes Everybody has illustrated the emergence of technology and its detrimental effect on the existing industries and practices. The most relevant to this topic is the story of lithographers. Lithographer were in huge demand till the invention of printing press. The lithographers' role was erased, in a manner of speaking, the same way as the ink dissolves in water. In the short time that I had spent in the advertising industry, I have many times run to the newspapers with the 'positives' (looked more like negatives). Today, it's digitized. Disruptive technologies have had telling affect on industries.  

Search for it and you will find numerous reports on the decline in the popularity of newspaper. Of course, the link is more specific to US. In India and developing countries, it might be better. To quote Shirky's work, it is because Web 2.0 has made anyone with access to Internet a publisher. With the power to publish, the world has become, what I am tempted to call, Journalists' Paradise or should I say hell. Just like lithographers, it is often quoted that the breed of journalist (who hold exclusive right to publish) will die. Sounds logical. With democratization of journalism, it doesn't sound incredulous. On a side note, a trained calligraphist who is changing the way technology industry works is Steve Jobs!

What about other media? TV and Radio?

Before we move on let's consider some fundamentals:

1. Human beings will continue to seek information
2. Human beings will continue to seek entertainment

Now, what is communication about?

1. Sender
2. Receiver
3. Medium

Elementary, wasn't it? But useful to consider what will be the future of the communication tools like advertising and PR, because they are about medium. Internet is also nothing but a medium, pretty much like TV, Print and Radio. Social Media, growing at a rapid pace, presents a new opportunity rather than problem. Today, both traditional advertising & PR and specialist individuals and agencies are cannibalizing this medium with their services. 

The problem is rather for media organizations. 

Future of media is likely to change dramatically. If YouTube is the way we will watch videos then how will the advertising model work. Look at IPL on YouTube for that matter. Internet telecast of events might offer advertisers the power to 'actually' customize their ads. Unlike the regular TV where one ad fits all, will TV through Internet offer the same flexibility as it does on PC. Also, if the TV software is made available on 'cloud' where a viewer can watch programs as and when he wants to, how will advertising work? How will the content be consumed? 

As for print is concerned, things are pretty much clear. Things have already changed. The problem that the print industry will face is the explosion of self styled journalists. But think about it, as consumers of entertainment and information we are very simple beings. Further, we also are emotional creatures becoming loyal and sentimental. Most often our choices narrow down to couple of options. The dust is likely to settle, there will be consolidation. 

What would be interesting to watch going forward is the future of social media consultancies? Would they become a special breed and a full fledged industry? Or will PR and Advertising industry master the new medium?

Twitter Killed Jyoti Basu

Let me assure you, Comrade Basu is still alive. He is extending his life as he did with his regime in West Bengal. But Twitter and its Twitterites killed him about two days back!

Clay Shirky rightly described this phenomenon in his book – Here Comes Everybody. The emergence of Web 2.0 has transformed internet from one-way lane to a two-way chaotic highway. Web 2.0 tools and applications empower every wanting user to create and distribute information in a way that was unimaginable in the past. The coinage information-overload falls too short to describe the current situation.

Twitter, in my opinion, has become the most active real-time news medium.

It was very interesting that 140 character obituaries were being written while the man was ‘dying’ (as Sagarika Ghosh’s tweet said). Well, I, too, mourned in a hurry. But was quick to google (another contribution of internet age as now the word has been recorded as a verb) and found that no such news was floating on the web. The news alerts only said that he was ‘dying’. It is two days, now, and comrade is still ‘dying’. Not that I want that poor old legend to die.

There is a joke that you must have heard about the authentic and credible The Hindu. It is rumored that the publication house would send their own doctors to verify before they print obituaries. Well, it does sound funny, but it is journalism. Investigate, ratify and, only then, publish. Oh, of course, don’t be biased.

While it is good for the Barack Obama and Shashi Tharoor to tweet and connect with masses, I doubt whether they will or should use it as a medium for official communication.

Just wondering, if, Obama will tweendor (Tweet-Wonder) about increasing troops in Afghanistan or remove embargos slapped on Cuba. Or will he discuss or brainstorm with the think-tank and advisors. Mr. Tharoor, on the other hand, will most likely Tweenicate (Twitter communicate) and leak every disagreement that he has in his ministry with the ‘cattle class’ in Twinderland (of course, Twitter Wonderland).

I am wondering that democratization of journalism might actually create a very chaotic information board for us. But after the ripples, the waves calm down. I am sure the chaos will prevail for some more time. Then consolidation has to happen.

Twitter has already become source, inspiration, distribution and interactive channel for media. Will Twitterites become the future journalists and Twitter the media!

Piracy Is Good (Part Deux)

Well, I said it earlier. Piracy is good!

Newspapers say that Jaggubhai, Sharatkumar-starrer and KS Ravikumar directed flick, is now available on internet. Oh by-the-way, the movie hasn’t been completed, yet. At least earlier, the movies were copied only in theaters after release or from the originals that were sent overseas. Now, they are being copied in editing rooms!

Technology is making digital reproduction and distribution easier. Also, we know crooks will always be one step ahead. It is ‘mission, impossible’ for the cinema industry.

The report says that Radhika Sharatkumar, wife of Sharatkumar, complained to M Karunanidhi. I can only laugh. J Jayalalitha, ex-CM, was far better in controlling piracy during her regime.

Of course, try, try and until you fail, again.

So as I had said earlier, instead of fighting piracy, make the best use of the technology. The pirated movies are available for a meager Rs. 40. And that booty is going to “pirates of the ‘cinemawood’”. Take it, guys! There is money to be minted. There is an existing distribution channel.

Those who love watching movies in theatre for the experience will anyway watch it in theatres. For those who think cinema is an expensive proposition, which I am sure is a huge segment, will benefit from this change in strategy.

Of course, the cinema industry has already started releasing movies on DTH platform. So what stops them from selling on inexpensive storage formats? Since prices points are low, there will be no entry barrier for purchases. This means that everyone will want to own a copy rather than circulate amongst each other. Well even if circulated, it is fine. As long as the cineconomy has made some money, it is fine.

Well, if the cinema industry doesn’t listen, what can be done? As the Kalyani Beer ad says – what goes my father, it’s your funeral!

Till things change, selling of pirated movies will continue at ‘Burma’ Bazaars, Subways and at train stations! Right under your nose, Mr. Producer!

Internet Strategy for Indian Politicians

The second most populous nation in the world, India, has a human stock of 1.2 billion people. India also happens to be the world’s largest democracy and the Indian Parliamentary Elections due this April-May will probably be the biggest electoral event in the history.

About 700 million citizens will be eligible to exercise their franchise. 500+ seats, thousands and thousands of aspirants, numerous parties huddles loosely (or tightly) into three (oh no, four. Never mind) fronts. Across the length and breadth of the nation, accommodating almost all terrain possible on planet Earth.

Welcome to the World’s Largest Democratic process!

Despite being a developing country, India takes pride in use of technology in this gargantuan process. Not many developed countries can claim to be as savvy as India is.

What really caught my attention this time was the use of technology by political parties to position themselves as the party of choice. In this case, I am more interested in parties using the Internet. I have seen BJP’s LK Advani on Orkut. My colleague Sonia (not Gandhi) informed me that Congress’ Sonia (this time Gandhi), Rahul, and Manmohan Singh stare you from banners in various website.

Quite surprising! At least, I am surprised.

Why would political parties use the Internet to propagate themselves? The penetration of internet is so low that, in my opinion, it is neither effective nor efficient medium. Internet is medium for the crème-de-la-crème and this number is likely to be miniscule. And most importantly, it is as fragmented as any other medium available.

Let us ponder over the voter base and the reach of different media. We may be able to arrive at a good media strategy for the politicians of country then.

As I had mentioned the voter base of India is around 700 million (meaning people over the age of 18). According to IAMAI, there are about 45 million internet users. We will consider this base 800 million in this article. This is for ease as the IRS studies has taken 12+ population as the sample for its studies on media and Internet as a medium.

According to this report in IAMAI, the number of people who use Internet in India is 45 million. Of the 800 million population, the number of people in the urban and rural India is approximately 250 million and 550 million, respectively. While urban India is savvier, which is no brainer, the Internet penetration in rural India, which is “where India lives”, is abysmally low. In terms of percentages, the total Internet penetration is approximately 6%. Rural India is in decimal figures.



In a stark contrast is the extent of penetration achieved by other media. TV tops at 467 million, publications comes second at 323 million and radio, with its emergence, stands at 180 million.

Some of the leading TV channels, publications and even radio channels can put total Internet penetration figures to shame. Some figures have been provided in this article for you to refer.

So, why are our politicians from the Left, Right and Centre so visible on the IT horizon? Just a small digression, as I write this article, Samjawadi Party has released its manifesto and if I have to believe news reports have decided to shun machines for men.

The problem with media in India is that it is highly fragmented. Primarily, India states have been divided based by the lingua franca spoken in that particular region. For example, Tamil Nadu is inhabited by people who speak Tamil, Andhra by Telugu, Karnataka by Kannada and so on. Each state government over the years has done well in promoting the local culture and language. The role played by local language (or vernacular) medium has to be commended. It will be worthwhile to mention here that according to a study, the number of English speaking populace is only a meager 90 million (maybe it is not meager but the point is that local language prevails). Consider this, Tamil Nadu state has 60 million Tamil (a language which was spoken even before the advent of Sanskrit). Population of Uttar Pradesh (UP), the most populous state in India, is 100 million. The language predominantly spoken in UP and in most part of the heartland is Hindi. Bottom-line, similar to the penetration of Internet, English, Internet’s (un)official language, is pathetically low.



Two, the Indian media is segmented, as it would be anywhere else in the world, based on the content it delivers. General Entertainment channels – Hindi, English, and regional languages, News channels – Hindi, English, and regional languages, Infotainment and Music – channels are primarily English though there are many local language Music channels, Movie – English and Hindi primarily, though regional channels do exist. Internet is also fragmented though the primary use of Internet in India is Mail (91%), Search (76%), Education Information Search (49%) and Text Chat (46%).

And finally, the segmentation based on Socio-Economic classification (SEC). The digital divide is total in India. We have seen that the penetration of Internet in rural India is paltry. Even in urban India where 43 million have access to Internet, the penetration cannot be claimed to be substantial (around 5%). It is no brainer that computer and Internet is used more in the SEC A1/2 section of the society. That again is not big number. Also, I do not think that this section is a large enough vote bank for anyone.



So why? Why Internet? Why are these politicians sprinkling/putting (not betting) their money on banners and ad words? How do they exactly plan to capture votes and imagination of the masses?

As Sonia, my colleague and a strong supporter of the Internet strategy for politicians put it, “it is not for masses but classes. Politicians are trying to reach out to thinkers and opinion shapers.”



Valid point!!! Or is it?

This article is dedicated to Manoj, who commented after reading my piece on differentiation for James Bond, that my thoughts are too frivolous and devoid of any facts or figures. So, Manoj here it goes. I have tried to put as many figures and tried to make this look like a research piece. Thought most is secondary data but relevant.

This article would not have been possible without the help of my very able colleagues who did the research on my behalf. Thanks Sonia, Durai and Rashmi.

If you are interested to read more on Internet in India, please visit http://www.iamai.in/reports1.aspx