ADOTAS – How many screens do you own? One, two, three, four or more? Most American adults now own a TV, computer and smartphone, and a growing number also have a tablet or e-reader. Yes, we love our devices. And guess what we love even more? To have them all on at the same time!
Increasingly, consumers (especially those with smartphones and tablets) are using more than one screen at a time. Some of the latest figures from Nielsen show that 40 percent of smartphone and tablet users are using their mobile devices while watching TV. Two years ago, Nielsen also discovered that 57 percent of consumers were watching TV and surfing the Internet simultaneously.
Is it too much of a good thing? Who knows. One thing’s for sure — all these screens are making marketers’ jobs more challenging than ever before and imposing new demands on the agencies that support them. 2012 will be a year to step up our game. Looking ahead, here are some things you need to consider about today’s consumer, and tips for marketers and agencies that want to engage with them.
Consumers: Distracted But In Control
Consumers are exposed to a tsunami of marketing and advertising, with some estimates as high as 5,000 ad messages per day, according to the New York Times. Regardless of demographics and purchasing behavior, chances are that they have more media choices in front of them today than they’ve ever had. While it’s harder for advertisers to connect with the distracted consumer, these same consumers are lining up to find, friend, like and follow the brands they really love, using social networks to voice their praise and complaints in greater numbers every day. Americans spend 23 percent of internet time on social networks (according to Nielsen research), and almost 42 percent have mentioned a brand in their status updates (according to eMarketer). Unfortunately, many brands are doing an exceptionally poor job of responding. Take a quick survey online and you’ll read accounts of Twitter questions unanswered, ratings and reviews ignored, and Facebook comments unheeded. Many companies don’t do anything with the staggering amount of input provided to them by enthusiastic fans, friends and followers.
Bottom Line: Consumers want to engage with brands on both pain points and positive points. Brands need to do a better job responding.
Marketers: Fickle Nomads
The pace of product and platform development means marketers have been faced with one new possible tactic after another. Add intense competition and mix in a challenging economic climate, and you have a recipe for a chaotic soup in which marketers are quick to adopt the latest channel and just as quick to move on when the next “new thing” is unveiled. Like migrating nomads, marketers follow the herd, thinking, “Everybody is spending their money in TV (or online, or in radio, etc.), therefore I need to spend my money there too.” Which is why you occasionally hear a CEO saying, “I need one of those tweeter things.”
Ready to hop on the latest opportunity based on what their competitors are doing, marketers in some cases proceed without a strategy. This is a recipe for failure, as consumers are moving faster than marketers. Marketers need to take a more consumer-centric approach — actually going where consumers are today. If you look at the numbers for TV and radio consumption, there is a huge disparity between ad spending and usage. The average American watches 141 hours of TV per month, up 1.5 percent from the previous year (Nielsen). Yet television advertising surpassed$18 billion in the first quarter of 2011, growing almost 9 percent versus the same period in 2010 (Nielsen). Marketers need to balance media planning and promotion budgets into areas where they are seeing an increasing usage.
Bottom Line: Marketers need to take a deep breath, realign, and find out what consumers are doing and what they really want from them.
Agencies: Stuck in a Silo
Agencies find themselves perched between the rapid pace of consumer adoption of new technologies and marketers’ desire to engage with an increasingly distracted consumer. Despite good intentions, many agencies have been slow to change and develop new services that their clients need. Let’s face it — it’s a lot easier to stick with tried and true tactics with high profit margins than it is to ramp up the expertise needed to provide newer and more sophisticated tactics. Traditional agencies especially are perpetuating an investment in TV advertising because it’s easy to buy TV profitably, with production and media for a single campaign easily reaching $2 million, and fewer demands on the organization.
In contrast, designing and implementing a successful search marketing program means more moving parts, between keyphrase research, bid management and creative, and it means more work for the agency. But if consumers’ attention is being split between their phones, iPads and TVs, how effective can these expensive spots be? Five years ago, digital marketing was so new that almost all agencies were siloed into a single expertise or specialty (SEM, SEO, email, etc.). Today a successful agency must offer an entire spectrum of services in order to be successful for its clients. Agencies need to stop thinking about margin contribution and start thinking about how to do a better job for their customers.
Bottom Line: Agencies need to update their expertise, offer wider a variety of services, and integrate these solutions to meet their clients’ needs.
If the past 10 years have taught us anything, it is the fact that the media landscape will continue to evolve rapidly. The good news is the fundamentals will not change; consumers will need communications to inform and persuade their purchase decision-making. But as the distracted consumer flits back and forth between watching TV, texting their friends, looking up information on actors, or just aimlessly surfing while the TV’s on in the background, getting through to them on any device will become harder and harder. As a wise marketer once said, “We’ve got to stop interrupting what people are interested in and start being what people are interested in.”
Happy 2012!