Archive for September, 2011

Always The Bridesmaid?

// September 5th, 2011 // No Comments » // Uncategorized

The great promise of mobile marketing (the perennial Next Big Thing) has yet to be fulfilled, at least in New Zealand — it remains just around the corner. But we do note a couple of promising signs in recent times:

SIGN #1; TRADE ME

In April, around 1.5 million Trade Me sessions (just over 1% of all sessions) occurred via a mobile device. Over three-quarters of those visits occurred via the Trade Me iPhone app (launched November 2010).

The take-up for the new app has exceeded all expectations. Trade Me estimated they’d get perhaps 50,000 downloads in the first seven months — so far they’ve hit over 125,000, with more than 15,000 downloads of the application in each of March, April and May.

 

SIGN 2: SEEK

Kiwis conducted over 100,000 job searches on their mobile phones in June, an increase of over 60% since SEEK mobile launched in December 2010. The number of visitors to SEEK’s dedicated mobile site has almost tripled in the last seven months.

Time to start contemplating a little more mobile marketing in your mix, perhaps.

New Zealand by the numbers

// September 5th, 2011 // No Comments » // Uncategorized

72: years since the last snowfall in central Auckland

82.7: average life expectancy in years for a newborn female in New Zealand as at August 2011 (Source: Statistics Department)

78.8: average life expectancy for a newborn Kiwi male

26: width in metres of New Zealand’s biggest digital screen, at the new Hoyts Te Awa cinema complex

613: television revenue ($millions) for the year ended 30 June 2011, a 5.1% increase on the previous year (Source: ThinkTV)

52: percentage of the country’s wealth in the hands of the 10% richest Kiwis (Source: Ministry of Social Development)

38: position on the 2011 Reader’s Digest list of most trusted professions held by journalists, just below celebrities and just above real estate agents

5.1: online retail sales as a percentage of all NZ retail sales, according to a recent report on the Australian and New Zealand online shopping market published by PriceWaterhouseCoopers and Frost & Sullivan

Movie Magic

// September 5th, 2011 // No Comments » // Uncategorized

We shouldn’t really be surprised. The Harry Potter series of books broke all sorts of records around the world (despite the fact that the initial print run of the first book in the series, “Harry Potter and the Philosopher’s Stone”, was just 500 copies, of which around 300 went to libraries).

Now the cinematic version of the second half of the final story (“Harry Potter and the Deathly Harrows, Part 2”) has seen records tumble around the world. In New Zealand, the final fragment of JK Rowling’s masterpiece has claimed these milestones:

  • Biggest NZ opening week of all time (in excess of $4 million at the New Zealand box office), a position previously held by “Lord Of The Rings: Return Of The King”
  • Biggest NZ opening weekend of all time
  • Biggest midnight session result of all time for the New Zealand market

By the way, in case you happen to have a mint copy of the first print run of the first edition of that first book, expect to sell it for as much as US$29,875 (the sale price at auction of a recent copy). Harry may be gone but his legacy lives on.

State of the Internet in NZ

// September 5th, 2011 // No Comments » // Uncategorized

Last month, comScore Inc. (which describes itself as a global leader in measuring the digital world) released a significant new report, “State of The Internet with a Focus on New Zealand”.

Some of the highlights of that study, conducted in May 2011:

  • New Zealand is considered a mature Internet market, seeing just 2% YOY growth in user numbers — now 2.8 million Kiwis are users of the Internet
  • Average usage has increased by 7%, with New Zealand Internet users now spending 20.8 hours a month online
  • Internet users in New Zealand skew older than the global average: only 39% of the Kiwi Internet audience is under 35, compared to 52% of the Worldwide Internet population
  • Social Networking is now THE key component in web usage around the world; New Zealand is no exception – 96 percent of users here visited a Social Networking site in May 2011
  • Facebook dominates usage in this category by a large margin, reaching 79 percent of Internet users in New Zealand, averaging 5 hours and 10 minutes of usage in May
  • 82 percent of the web audience visited a retail site in May; Amazon.com topped the list, reaching 29.5 percent of the online population, followed by Apple.com (15.3%), 1-Day (9.3%) and The Warehouse (8.3%)
  • 66 percent of Internet users in New Zealand visited a Travel site in May; top of the list was Air New Zealand (11.6%), followed by Yahoo! Travel (10.2%), Stuff Travel (8.5%) and Expedia (7.1%)
  • More than half of the Internet audience in New Zealand visited a Business/Finance News/Research site, and more than half visited an online bank. Top sites in this category: Stuff Business (21.5%), ANZ (20.5%), NZ Herald Business News (17.6%) and Westpac (16.2%)
  • 69 percent of sports-hungry Kiwis visited a Sports site in May, far more than the global (40%) and regional (Asia Pacific 26%) averages. Top Sports Sites: Yahoo! Sports (16.5%), Stuff Sport (16.4%), NZ Herald Sports News (11.8%)
  • Virtually all web users in New Zealand visited an Entertainment site in May. Top destination: YouTube (58.4%)
  • Video Consumption in New Zealand is relatively low, with Kiwis spending an average of 9.4 hours a month watching videos (around half the U.S. equivalent). That number is not surprising, given the relative paucity of online video content compared to major markets.

And finally, we like to search. 93% of us conduct searches in a typical month, with nine out of ten of those searches on Google. On average, we go searching slightly more than once a day, and conduct 3-4 searches each time.

Google+

// September 5th, 2011 // No Comments » // Uncategorized

You’ve no doubt noticed the noise surrounding Google’s latest attempt to get traction in the social space, Google+. As Google has done with many of its recent launches, it’s offered up Google+ initially as a Field Test, on an invite-only basis — which has the dual effect of allowing Google to tinker under the hood during the rollout period AND creating artificial scarcity (thereby ramping up user demand).

Of course, what Google calls a limited release might not fall within our own definition of “limited”: Google CEO Larry Page announced three weeks after the rollout of Google+ that the new service already had more than 10 million users, with over 1 billion items shared and received in a single day.

The challenge for Google – or indeed for anybody trying to stake a new claim in the social networking space – is to provide enough compelling features to lure users across from Facebook. So many people now have such a significant investment (both in terms of time and connections) sunk into Facebook that users’ natural inclination is to “wait until Facebook adds Feature X”.

Can it be done? Yes – after all, MySpace was once the undefeated champion of the social space, with so many millions of users that it seemed unassailable. Then along came Facebook. The rise and fall of MySpace is perhaps best demonstrated by its cash value: the company that owned MySpace was purchased in July 2005 for US$580 million by Rupert Murdoch’s News Corporation; MySpace was sold six years later for a reported US$35 million.

So Facebook’s dominance, although seemingly safe from competitive onslaught, may be less permanent than it seems; but is Google+ a worthy contender?

Too soon to say, of course, but if anyone can unseat the emperor, perhaps Google has the best shot. The Gplex is already integrated into our digital lives in a great many ways, and it’s a sure bet that if you have gmail or any sort of Google account, aspects of Google+ will begin to show up in your G-neighbourhood sooner rather than later, luring you across into the +playground …

From a marketing perspective, on the other hand, Google+ offers a mixed bag. Let’s look a little more deeply at some of the key components of Google+.

GOOGLE+ CIRCLES

Circles represent the most prominent feature of Google+ … a sharply-differentiated attempt to tackle the issue of inappropriate sharing.

Circles require you to segment your contacts into different groups, enabling users to avoid sharing everything with everybody. In the real world we don’t share everything with all our friends in the same way. For instance, you probably share different things with your family, old school friends or your boss. Those clubbing photos that only a few should see? Now you can avoid parading them in front of your work colleagues (or your dear saintly grandmother).

From a marketing perspective Circles can limit the spread of information, for better or for worse. It may be more difficult to achieve viral momentum (since Google+ users will be segmenting their groups of friends, and probably not being as promiscuous in sharing their brand preferences and likes with all their groups); but on the other hand the sharing that does happen will be much more targeted, with the recipients of said sharing likely to be more receptive if they share similar values.

On the other hand, expect Google to launch (at the very least) Google AdWords for Google+, offering up context-sensitive advertising that’s informed not just by the words on a user’s page but also by the terabytes of data that Google knows about said user (all in the interests of providing better-targeted messages, of course, not privacy invasion).

GOOGLE+ SPARKS

One of the more intriguing aspects of Google+: Sparks, a search facility that uses the power of Google to find stuff of interest (and make it easy to share with your circles of friends).

So how does a humble communicator get his or her messages into the Spark feed? That will no doubt be a source of much debate and comment as the usual suspects attempt to game the system….

GOOGLE+ HANGOUTS

This offering takes on the Skype/Facebook combination: Hangouts enable real-time web video conferencing of up to ten friends. Business opportunities with Hangouts? How about context-sensitive advertising triggered by voice recognition software? Watch this space …

Then there’s a whole suite of mobile applications, including Google+ Huddle (think Twitter meets FourSquare) which encourages real-time sharing on the go.

Our conclusion on Google+? Much to like – but also potential for confusion with so much new terminology and functionality.

As Paul Adams (the Google ex-staffer primarily responsible for the insight behind Circles) noted in a recent blog: Google values technology, not social science. Whether that translates into a contagious social solution remains to be seen.

Think Global, Plan Local

// September 5th, 2011 // No Comments » // Uncategorized

It’s a small world, we’ve been told for many years, and that mantra has been reinforced by the near-universal spread of television and the Internet. When Kim Kardashian launches a new perfume line, viewers from Auckland to Zagreb collectively inhale; when Justin Bieber tweets “keep in touch with the fans…never forget who got you here….always show love”, his 11,925,246 followers swoon in unison.

Kiwis are now global citizens, the thinking goes, and these days we take our behavioural cues from L.A. rappers and Parisienne boutiques. Cute cat videos can now sweep New Zealand and the world via YouTube faster than we can say “do I look viral in this?”

And yet, as noted author (and creator of the term “cyberspace”) William Gibson famously noted in 2003, “The future is already here – it’s just not evenly distributed”. Yes, there are indeed Kiwis from Kaitaia and Kaitangata and all points in between who absorb their collective insights from around the world. Many more of us, however, are grounded in the day to day issues directly around us: sausage sizzles to raise money for the daycare centre, surviving from pension day to pension day, remembering rubbish day once a week.

As a result, we cannot assume that everyone in Aotearoa is equally exposed to international stimuli. Just as large swathes of the NZ population no longer recognise some of the once-classic clichés of Kiwiana – what resonance do black singlets or gumboots have to someone raised in Sri Lanka or Soweto? – others are left baffled by everyday aspects of the digital domain. Contrast the experience of the urban blogger who knows more, faster about the Tottenham riots than about the snow falling in Wellington, with the rural roadworker who relies on Simon and Wendy to serve up the news du jour. Shared experiences are now the exception rather than the rule.

Marketers were similarly warned about the perils of “one size fits all” thinking at the June Lions Festival of Creativity in Cannes. Initiative president Eric Bader took issue with the current fascination with “paid, earned and owned” media*.

In particular, Mr Bader observed that “The danger with classifying according to ‘paid, earned and owned’ is that marketing can become too linear and global assumptions can be made about the consumer. Initiative is not rejecting paid, earned and owned, but we are challenging the way it is being used.”

Another speaker from Initiative, Jeffrey Graham, (worldwide director of performance), expanded on this point: “Paid, earned and owned assumes the world is flat, but there is no global consumer. Local insights have to be the foundation for your marketing strategy.

“From our research [surveying 4,000 people across nine countries] we found, for example, that in Australia, TV – paid media – drives trust. But in Spain, word-of-mouth and sampling – owned and earned media – drive trust. Each market has a completely different mix of paid and earned and this will vary by category.”

Consumer attitudes to factors such as price, trust and product features were proven to vary dramatically from one market to another, which could have a significant impact on the way that paid, earned and owned media were used to drive consumer involvement with a brand, according to Mr Graham.

So what should marketers do? Eric Bader underlined five key points for marketers looking to successfully use paid, earned and owned in their communication activities: “Track and measure customer involvement; map your brand’s touchpoints; connect the purchase path to every touchpoint; use local insights to create a local plan, and give customers an experience, rather than a rotation of messages.”

And that’s global advice worth following locally.

 

* paid media = advertising and other paid-for inventory; earned = content and messaging created by consumers; owned = touchpoints owned by the brand such as websites and blogs

Changes We’d Like To See

// September 4th, 2011 // No Comments » // Uncategorized

  • Naming of forecasters responsible for particular weather predictions so that they can be acclaimed when they get it right but shamed when they get it so, so wrong.
  • Toothbrushes with built-in analytical technology which can hunt down particles still lurking in our mouth during brushing.
  • An Objectivity Rating which all journalists, bloggers and other commentators are obliged to display so that we have a much better understanding of their points of view and what lies behind those opinions.
  • Parking meters that can be programmed to send a message to our mobile when our time is almost up and we need to move our car.
  • The collection of relevant quotations from ancient Greek and Roman writers into an online database which can then be used whenever criticism of the younger generation is required.
  • Light bulbs that will switch themselves off when the overall light in their sphere of influence reaches a certain user-specified level.
  • ‘Use By’ dates on supposedly fresh produce, to avoid those unpleasant moments that occur when we bite into something that still looks okay but …