Proximity Marketing

apple-iphoneI recently attended a customer brand loyalty summit and saw some interesting things & met some very interesting people. One of the topics discussed during a networking session was the next progression associated with marketing and mobile devices.

A lot of us are glued to our phones (Or iPhones) as I have talked about before. With more and more consolidation of devices it is not a leap that the next progression will extend from the device being the primary focus of reach to incorporate other services around the device.

Soon your mobile device will go from being your portable music player/phone/organizer to housing digital coupons, boarding passes for flights and credit cards (bye bye wallet). This is already prevalant in tech-centric societies such as Japan, but with the mobile adoption rates at the highest they have ever been here domestically combined with an increase in the level of sophistication and comfort from end-users, more and more emphasis will be put on mobile devices.

From a marketing perspective this can become very interesting. We have seen the shift from mass marketing to individual marketing where the user is now king (or queen) in controlling the messages that they want to see. The next step in proximity marketing is to have users opt in to their likes and allow for the location or an event to market to the user when they reach a certain proximity to a location.

For example. I drink a lot of Starbucks. I can opt in that I like Starbucks. The next time I am driving/walking close to a Starbucks I might receive a ringback reminding me that I am close to Starbucks and a Grande Green Tea Latte might be good at this point in time.

This will not work for all organizations but it is the next step in how marketers and brands will reach beyond traditional methods and delivery and further incorporate technology while respecting the end-users ability to choose the messages that allow in.

OMMA & Social Networking

I recently attended the OMMA Global marketing conference in Hollywood, California. Some of the top talent from the marketing industry was there recently to discuss the current state of online marketing, media and advertising. The Event featured a number of session tracks that each followed a specific category (e.g. media, advertising, etc..) as well as an expo that featured a wide array of organizations from social networking providers to Perez Hilton.

The focus of this two day event was to discuss the latest trends and technology that can enable marketers to excel in the ever-changing media landscape. Hot topics were how to apply social networking solutions into campaigns as well as a strong emphasis on monetization of widgets.

Some very interesting data was shared during the sessions such as in 2008 the rate of consumer adoption of social networking to internet users has reached 43.5%. Meaning 43.5% of users are involved with some type of social network. The issue for marketers though is that only 5.7% of marketing spend is being applied to reach these consumers through their social networks. With consumer adoption continuing to rise it is only a matter of time before the marketing spend around social networking solutions will begin to close the gap.

The #1 reason for the difference in % is an inherent lack of standard metric consistency. The old guard of methodology based on CTR (Click-Through-Rate) is not working for defining value around Social solutions. Focus on Social Analytics means that a big step has been taken in providing consistency by focusing not on CTR but on the actual commuinty data by providing in-depth analysis of the latest trends that lead to successfully defining ROI on a given campaign initiative.

Another interesting topic that was discussed was that there is a lot of channel confusion. Meaning a number of marketers do not fully understand how to deploy social media solutions. There are a number of options. White label & SaaS Social Networking platforms, User generated content specific applications, etc… my recommendation is to find a solution that provides an integrated platform with a flexible UI that allows for flexibility to deploy the applications that are relevant for your clients needs but one that also has a strong reporting engine as consistent metrics are the key to defining a successful campaign. Also, depending on your client you may want to position a solution that scales to meet the potential demand.

Finally, one of the other hot topics of discussion around marketing and social networking was the concern around communication control. There is uncertainty about how to manage brand messages when deploying social media solutions. As Rob Howard has stated before, conversations matter. Your customers are going to talk about you whether you have a social networking presence or not. There are ways to control communication such as positioning moderated blogs instead of more collaborative applications where the organization is controlling more of the publishing and the user has less control over the brand. But ultimately we have found that transparency can be a very good thing for businesses as it can reveal a face to the brand that might otherwise miss the crucial connection with end users who are in even more control of the messages that they receive.

It appears that social networking applied to business is about to truly enter the mainstream in terms of marketing budget allocations as the consumers have spoken and shown that they are interested in this style of collaboration. The challenge for the marketers is to develop engaging campaigns that compliment the daily activities of users. One thing is for certain though it is going to be a fun ride!

Community Server 2008 Logo Unveiled

One of the fun parts of my job is that I work closely with our Creative and
Marketing teams in defining the direction of the various brands for our
products. After a number of cycles the team has unveiled the new Community
Server
2008 logo.

Community Server 2008

I am very excited about the progression of the brand over the past few years. I
feel like this iteration is a good representation of what Community Server is
all about.

Great work guys!

Interview with Major Nelson

During GDC 2008 I had the opportunity to sit down and talk to Larry “Major Nelson” Hyrb of the Xbox Live team. Larry is the Director of Xbox Live Programming and is the author of one of the most popular gaming blogs on the web. Between posts, blogcasts and twitter Major keeps everyone up to date on the latest information on all things Xbox.

The focus of the interview was to get Larry’s thoughts on the keys to his success as well as his thoughts around social media and the future.

TheBlackFin: You have one of the highest trafficked blogs on the web today. What has been the key to your success?

Major Nelson: Since the beginning this has been about being a part of the conversation. With any blogging the ability to connect with the audience with relevant content is the key to success.

TheBlackFin: Describe some of the interesting trends that you have seen with your blog from the time you originally published it through today.

Major Nelson: The integration of the gamertag has been key since the beginning . The ability for gamers to publish their gamertag and tie in to the Xbox achievement system and publically display their gamerscore has been one of the most important elements to building community around Xbox gaming.

TheBlackFin: How do you think your blog has enhanced the Xbox Live brand?

Major Nelson: The blog has allowed us to have a conversation.  As one of the highest trafficked gaming blogs doing podcasts and blogging it has enabled real time communication. As you know this audience is rabid about information and they want to consume it in almost real time.

TheBlackFin: In your opinion… What impact has social networking and community in general had on the gaming industry?

Major Nelson: Social Networking has had a phenomenal impact on the industry. What a lot of people don’t realize is that Xbox Live is a premier social network. Everyday hundreds of thousands of users log on to play with their friends, compare gamer scores and connect with other gamers. With the integration between the consoles and Xbox.com it extends the experience beyond the console.  Also a lot of external applications are now picking up gaming data… you see different applications on MySpace and Facebook.

TheBlackFin: What publisher and game title has been successful in deploying a good social networking gaming experience?

Major Nelson: Without a doubt it would be Bungie and Halo. Online and offline what bungie has done to include the community has just been amazing.

TheBlackFin: What are your predictions around social networking trends and gaming in the next few years?

Major Nelson: I think we are going to see more of the game/web interaction like Bungie has done with Halo and Electronic Arts with Skate. Look at how they take in game data and spray it back to the web and allow users to collaborate with it. What Bungie has done is the tip of the iceberg. More and more publishers are recognizing the value of having a seamless experience between the game and the web.

Me with “the Major” @ GDC 2008
Tom Edwards with Major Nelson

GDC 2008 – Expo Day 1

GDC2008The 2008 Game Developer Conference has been a great conference so far. Most of the major industry players are here. Microsoft, Sony, Electronic Arts, Disney, Ubisoft, Activison and a host others. After the first few days of the conference focused on a number of sessions and events today marked the beginning of the Expo portion of the conference.

The technology that was on display was cutting edge and amazing. From motion capture demonstrations to the latest in animation technology including demonstrations by Natural Motion of their Dynamic Motion Synthesis Euphoria product which will be big role in the upcoming Star Wars: The Force Unleashed and Grand Theft Auto IV. To a host of demonstrations from organizations that are looking to take gaming to the next level. From brain wave centric gaming to you as the controller the evolution of gaming is close at hand.

G4 and the X-Play team are here broadcasting as well as Larry “Major Nelson” Hyrb. This has been a very informative event thus far and I look forward to tomorrows sessions, hitting the expo floor again and meeting with the EA team.

There will be more photos posted in the photo gallery soon.

Me with a Big Daddy from Bioshock
Tom Edwards with Big Daddy from Bioshock - Blog

GDC 2008

GDC2008I am in transit to San Francisco to attend the Game Developers Conference 2008.

I look forward to the numerous sessions and networking as well as all of the latest and greatest gaming demonstrations during the expo portion of the conference.

On Wednesday I will begin my blog coverage of GDC 2008 as that is when the Expo gets underway.

On deck is an interview with Larry “Major Nelson” Hyrb discussing his thoughts about the impact of Social Networking and gaming as well as insight into the keys to success of his blog.

Nike Super Bowl Event

Tonight was the Nike Super Bowl Event and it was the highlight of the trip thus far. A special thanks to BK for the invite and introduction to AD that made the trip for me. Basically any athlete that is associated with Nike Football or will be associated with Nike Football was at this particular event along with Nike corporate as well as a few of our friends from Microsoft.

The list was impressive: Adrian Peterson, Ben Roethlisberger, Jim Kelly, Warrick Dunn, Desmond Howard, and T.J. Houshmanzada to name a few. Others in attendance, Alice Cooper and Cowboy Troy.

When not focusing on business I spent time talking to Sooner Alumni and current Chicago Bear JD Runnels and current OU TE Joe John Finley and of course with Adrian Peterson. For those that don’t know me I bleed crimson and cream and the opportunity to meet one of the greatest Sooner running backs of all time was worth the trip.

Tom Edwards with Adrian Peterson - 640

Golf with The Gridiron Greats

Besides Madden Bowl XIV yesterday it was day two of assisting the Gridiron Greats cause. The morning brought a very moving press conference with 50 Gridiron Greats, 35 of which are Hall of Fame players. They gave moving testimony as Mike Ditka, Gale Sayers, Daryl “Moose” Johnston, and Michael Irvin all spoke about why this means so much to so many former players.

Later in the day brought the Gridiron Greats Golf event where the grand prize was a pair of Super Bowl XLII tickets. During the awards ceremony I had the priviledge to speak with Mike Ditka, Jim Marshall, and Jan Stenerud about their thoughts around the current situation facing those players left to fend for themselves.

This has been a great experience in that the passion that these men feel for this issue really comes through in their words. There are times when tears begin to gather and emotions start running high. These men, especially the older players paved the way and made the game what it is today. They gave their bodies and did not receive the generous salaries of today’s players. It is amazing how much this organization has accomplished in just one short year. It will be interesting to see where this goes.

Mike Ditka
Ditka 2 - 640

Jan Stenerud
Jan Stenerud - 640

Madden Bowl XIV

Madden Bowl - XIVTonight was the invite only Madden Bowl XIV put on by the Electronic Arts Tiburon team. It was a great event. A number of NFL stars squared off to see who would be the Madden Bowl XIV champ. Kellen Winslow Jr., Willis McGahee, Marshawn Lynch, Chad “Ocho Cinco” Johnson, Jason Whitten and others all virtually took the field to see who would win the coveted Madden Bowl trophy.

After a few rounds the finals came down to Willis McGahee and Marshawn Lynch. McGahee took home the coveted Madden Trophy 43-7.

The event was being blogged live by Will “Raczilla” Kinsler, Madden community manager.

Will Kinsler - 640

Also, It was great to hang out with Mike “MJ” Johnson (Below) and Reg Hamlett of EA Sports and all of their associates during the event.

Tom Edwards - MJ

Super Bowl XLII

gridironIt has been confirmed that I will be going to Arizona for a week of events for Super Bowl XLII.

I will be supporting the Gridiron Greats assistance fund. The fund was created by Mike Ditka, Willie Davis, Harry Carson, Gale Sayers and others. The fund benefits retired players in need.

The Super Bowl XLII events will bring together the largest gathering of NFL legends and Hall of Famers to date. Some of the attendees will include the likes of Earl Campbell, Barry Sanders, Lawrence Taylor, Marshall Faulk, Gale Sayers and over 50 others. This is a great cause and we wanted to provide support by offering our products and services.

The week will be filled with events which will include Mike Ditka’s Gridiron Greats dinner of champions, Gridiron Greats Golf Event, Celebrity Poker Event and a Gridiron Greats Super Jam and I will bring you blog coverage from the various events as present and past NFL players blog about the events on our platform.

In addition to the Gridiron Greats there will be the NFL Experience theme events,  an invite to a Nike Event and an invite to EA’s Madden Bowl (Thanks MJ) that will also be on the agenda.

It should be a great week!

GDC 2008

GDC2008I confirmed today that I will be attending the 2008 Game Developer Conference February 18-22 in San Francisco.

I am very excited about attending as outside of the networking and expo portion the key areas that I am interested in are the business and management topics of “Make the Community Part of Halo” and advertising and games.

The “Make the Community Part of Halo” discussions are very key as it talks about the bungie.net experience and how they worked to make community an integral part of the game itself.

I have worked with Microsoft Game Studios, Ensemble Studios and of course Electronic Arts on the Skate and NFS ProStreet titles fall along the same lines. So if you are attending the event let me know and we will schedule some time to sync during the conference.

Mike Ditka’s Dinner of Champions

Today kicked off a series of events here in Scottsdale, Arizona. I am here to support the Gridiron Greats throughout the week for various events. Tonight kicked off with Mike Ditka’s Dinner of Champions. With over 50 NFL legends in attendance this was one of the largest gatherings of NFL HOF players all to support a very worthy cause.

During the event I served as the blogging admin for http://blog.gridirongreats.org and assisted various NFL legends including Gale Sayers, Mel Renfro, and Tim Harris as well as other NFL players such as Daryl “Moose” Johnston, Andre Reed, and Kyle Turley discuss their thoughts about the current issues facing retired NFL players today.

Mike Ditka
Tom Edwards - Mike Ditka - 640

Gale Sayers
Tom Edwards - Gale Sayers - 640

Daryl “Moose” Johnston
Tom Edwards - Daryl Moose Johnston - 640

CES 2008 In Closing

It is great to be back in Dallas! CES 2008 was a great event. From the Bill Gates hilarious “last day video” to all of the robots, gadgets and celebrities. CES is a definite must attend event for any tech/gadget lover.

Being the avid gamer that I am I was disappointed that there was not a larger presence from the gaming industry on hand for the event. The show was dominated by Home and Audio products. There was a “gaming showcase” area but it was mainly filled with resellers and start-ups. There was not a lot to be seen. Granted CES occurs after E3 but it would have been nice to have more of a presence. The only major studio that I saw was Activision and they had a very small presence at the event.

One of the most impressive sites of the show was a “life size” version of the Autobot Bumblebee on the showroom floor. The level of detail and the scale of the piece definitely made you take notice.

Tom Edwards with Bumblebee

The only issue if you can call it one is that you definitely notice that there are 130,000 people in a confined space. There are times when you are pretty packed into a small space all vying for a glimpse of the latest and greatest but you have time to see all that you want to see.

Until Next year… Viva Las Vegas… Thank you… Thank you very much!!!

Tom Edwards with Elvis

CES Day 3

Coming to you live from Las Vegas at CES 2008. Today was another good day. After some early meetings with the Microsoft Vista team and the High Tech team it was on to the convention floor for additional networking.

There were 35 football fields worth of booths and exhibits. There was a very large focus on Audio and Home Theater with some of the best booth experiences coming from Panasonic, Samsung, LG and Sharp. Others went for sheer size…. Sony, Microsoft, Intel and HP all had significant space dedicated to them. There were some truly amazing products and innovations. LG had the thinnest flat screen television that I have ever seen and the war between Blu-Ray and HD-DVD was being waged on the showroom floor. I will be posting a number of photos from the event in the photo gallery soon.

There was a lot to see as business was conducted on the show floor. I also had the opportunity to meet up with Larry “Major Nelson” Hyrb today as well as we discussed next steps regarding his blog. It is always great to talk to Larry. Be sure to check out his blog and podcast. He is the insider for all things Xbox.

Tomorrow will be my last day at the event and it will be the final push through the crowds of people and booths. It has been a great event so far and I look forward to talking to my targeted list of booths to close out the event.

Me with Larry “Major Nelson” Hyrb at CES 2008
Tom Edwards with MajorNelson

CES Day 2

Hello from Las Vegas. Today was another eventful day in Las Vegas. For most of the day I met again with the Microsoft High Tech Sales teams. Later in the day we did hit the expo floor here in the Venetian. The Panasonic “life wall” presentation was the most impressive of the day.

About 10% of the expo resides in the venetian but it was still as large of an expo as most standard conferences. There were all types of devices from Robots to data storage to replica Halo 3 plasma rifles. It was good to network and to see all of the great items. I have to say though there has been a serious lack of swag thus far. Of course with 130,000 attendees the goodies are few and far between.

Tomorrow we will hit the main expo hall. I will meet with Major Nelson as well as some other pre-arranged meetings. It should be a great day!!!

CES Day 1

Coming to you live from the Palazzo in Las Vegas… Day one is now in the books. Registration, networking and Rock Band were the orders of the day.

The focus of today was to meet with all of the Microsoft Sales reps that service the High Tech industry (~125 in attendance). After watching Bill Gates final keynote speech it was on to the Rock Band rock off. For those of you that don’t know Rock Band think Guitar Hero with drums and karaoke. We were to recruit members from the Microsoft to join our band and me and 3 Microsoftees made it to the finals. We put up the highest score of the night in the final during our set but ultimately lost the title (and the custom Zune prizes) to a team of seasoned Rock Band veterans. It was still a lot of fun though!

Tomorrow will be more networking with the Microsoft teams and then on to the CES expo hall as well as a meeting with Larry “Major Nelson” Hyrb of the Xbox team.

So far the conference has gotten off to a good start. Below is a pic of our “band” that’s me with the glasses on lead guitar :P.

Tom Edwards - CES 2008 Rock Band Battle - 1

How Much??? Really?!?

How much do we spend in the US on advertising? Well in 2007 we spent 283 billion dollars. Yes 283 billion. 

That may sound like a lot but this level of growth 0.7% versus 2006 puts advertising’s share of the 2007 GDP (2%) at it’s lowest level since the recession year of 1982. 

Even with an uncertain market advertising spend is projecting a 3% growth in 2008 fueled by the Summer Olympics and the Presidential Elections. Being interested in online spending I am very interested in the 2008 projections.

Below is breakdown of the 2008 projections. The data was based on a December 2007 report from Universal McCann’s Robert J. Coen as presented in the December 31st issue of Advertising Age.

  1. Direct Mail – $63B
  2. Broadcast TV – $48B
  3. Newspaper – $42B
  4. Cable TV Networks – $21B
  5. Radio – $18B
  6. Yellow Pages – $14B
  7. Consumer Magazine – $14B
  8. Internet – $12B
  9. All Other – $58B 

What may be surprising is the fact that online spending ranks 8th. Being in the industry our natural assumption is that online spending is in the top 3. With that said though this segment over the past few years has had double digit growth and is projected at a 16.5% increase from 2007. The next closest in terms of growth will be spend on Cable TV at a 6% increase.

The flip side is the reduction in spend on traditional mediums such as newspaper which is actually seeing a decrease of -1.8% of spend as compared to 2007 and Radio which is only seeing a 0.2% increase.

With the recent trends in online spending continuing to increase. The success of Google’s AdWords system and now with Microsoft commiting to a marketing focus now is the time to focus attention on the medium. 

This translates to very good news for online solutions and providers as well. Especially around social media based solutions. The need for social interaction with customers and users has now fully proliferated traditional business and the marketing dollars are now being fully allocated to deploying collaborative solutions as part of their integrated marketing strategy. I see this trend continuing into the near future.

CES 2008

2008 CESJust a quick note that I will be attending CES 2008 in Las Vegas. I will be at the event through Tuesday of next week.

Being the gadget guy that I am it will be a lot of fun to get a glimpse at the latest emerging technologies across a number of categories.

If you are going to be in attendance definitely let me know. Otherwise I will follow up with a review of the sights and sounds of this years consumer electronics show.

 

Why $60???

I still remember when I saw my first $60 price tag on a game. My jaw almost hit the floor. Now $59.99 is just what you pay for the latest title. Throw in the collector’s edition ($69.99) or the recent Halo 3 Legendary edition ($125) or the recent Rockbank release ($169) and you see the trend in gaming today.

So how did we get here? Where does the money go? Like any other product there is a breakdown of how the cash is spread around. Take for example a 360 title that sells around 500,000 units. $20 is to pay for the actual development cost of the game. This is everything from coding, level design, QA, etc…Then of course there is publisher overhead which warrants $9 of the $60. Next Microsoft licensing and manufacturing takes $12 for license (You know the Xbox 360 branding and Xbox Live stamps at the top of every 360 title). $7 is spent on advertising of the game. All of the POS materials, TV, magazine ads etc… the money has to come from somewhere right? The final take is the actual retailers cut of $12. This is your Gamestops, Best Buys, etc…

Now throw in strategy guides and downloadable content and the life of a game is now extended as is the profitability of the title. Take for example the latest EA title Need for Speed Pro-Street. It is the best example of a console game that leverages in game play with actual cash based (Microsoft Points) based extras. Don’t want to wait to get your dreamcar in the game? It can be yours for 200 Microsoft points. Not happy with your engine or injection system? No worries upgrade for 150 Microsoft points. It is a great move by EA to add this extra option. This also results in additional revenue for the title.

It will be interesting to see the continual evolution of gaming. I foresee a time when most of the content will be downloaded and the introduction of subscription models moving forward. We will have to wait and see.

SMS & Marketing

SMS based marketing is definitely on the rise. Why is that? Well for starters think about this. There are 6 billion people on the planet. There are over 3 billion cell phones in circulation. That is equivalent to 2.5 times more cell phones than internet connections!!! That will definitely qualify as a potential market for advertisers.

How many of you have received a text based ad, more importantly did you respond? In the month of September alone 4.7 milllion people in the US responded to an SMS ad. That may seem a bit surprising. I know I was surprised to read that data. The trend is definitely on the upward swing as well. Response rates have steadily risen since May from 4.3 million to 4.7 million in September.

So if 4.7 million people responded, imagine the increasing number of text based ads. Currently a majority of the ads are from the mobile operators centered around their mobile phone service (Downloads, News, Entertainment, etc..) I expect to see an increase of advertisers focus on this medium. Especially with a generation of individuals who rely heavily on this style of communication.

So do not be surprised if you begin to feel that familiar buzz of your phone when you receive a text message and you look and there is some form of advertisement. Be prepared for more messages from your favorite or not so favorite advertisers are coming to a mobile device near you.

 

Teaching & Learning

January 2008 will be 5 years for me as an adjunct faculty member of Wayland Baptist University. Initially I taught courses such as Principles of Marketing, Market Promotion, Consumer Behavior and Global Marketing on campus. Now I am a member of the Virtual Campus focusing mainly on distance education around Principles of Marketing and Human Resources Management. Each Semester (4 semesters a year) I get two new groups of students and begin the process of introducing them to the various concepts and provide insight into the latest marketing theory.

After interacting with thousands of students from across the globe I wanted to take a moment and reflect on the impact that this profession has had on me. In many ways teaching a course really enables you to emerse yourself in the content. When you are a student your main responsibility is to comprehend the information that is presented to you. When you are on the other side of the desk not only do you need to comprehend the information, but you also need to be able to apply the concepts to real world scenarios that are relevant to your students to truly enhance the learning experience.

What I have found over the years is that students want the information presented to them to be relevant to their lives in some way. So this makes my job even easier as marketing impacts everyone on a daily basis. It would be very difficult to go through a day without some type of message either directly or indirectly trying to capture your attention. Radio, Television, Print, Online… no matter where you go you are constantly being reminded about various brands trying to maintain their position or gain market share against competitors. 

Many of my students own businesses and this allows them to have a better understanding of how they can reach their target audiences and understand the many facets of their envrionment (Political, Technical, Competition, etc…)

I am very grateful for the experiences and the interact with all of my students. Thank you all.

One Console

While flying to San Francisco today I read an article that got me thinking… It discussed the fact that it is inevitable that a unified gaming platform is coming. It referenced past examples of commodification (when an item that previously was not a commodity becomes one). The primary example was the cell phone and how it started as a status symbol and they were expensive and all they allowed you do was make calls. Now they are small, play music, record video and for the most part are no longer status symbols… essentially a commodity. 

History shows that technology always becomes commodified and follows similar life cycle patterns. This is now happening with gaming consoles. Gaming consoles today do more than the market wants or needs. Now they serve as your media hub for movies, pictures, the web, etc… Once you reach the point in a products lifeccle where you are positioning more features than the market needs you begin to commoditize your offering. 

The current splits between systems also greatly impact publishers as they have to decide whether they are going to release a title across the major first party systems or go with a proprietary system and receive additional compensation. This model is counter productive in some ways as additional resources are utilized not in the creation or enhancement of the gaming experience but to ensure the game ports to the specific format. Also there is more content being released that is not necessarily competing directly with other titles on other systems. This in turn dilutes the publishers efforts as they are not receiving the type of market penetration that is conducive to larger profit margins.

In esssence these factors will lead to the inevitable which is a one-console future. The article stated that this would not occur because we want one but because the market cannot sustain itself. What would happen if this were the case? You would see a drop in hardware cost and an increase in manufacturers as this would de-emphasizes the importance of the hardware (Think TV’s in recent years) and allows game publishers with 100% market penetration which would lead to cheaper games as publishers would not have to split resources between two versions of the same game. This would also create more of a channel approach to distribution.

What are your thoughts? Is a unified console a reality? Can the market continue to sustain the current fragmentation? If it were based on the current generation consoles I would call it the WiS360… or the PSWii60.

Microsoft Marketing Services

Microsoft has a lofty goal. Within the next 4 to 10 years they look to have advertising account for 25% of Microsoft’s business. Based on recent revenue that would be upwards of $12 billion dollars a year. That represents a couple billion more than Google made in total last year. Think about that for a moment.

Why the sudden interest in advertising? Well to start you can look at the strides Google has made in the space with the AdWords model over the past few years. Combine that with Steve Ballmer’s view that there is an increasingly blurry line between software, media, and advertising and the fact that Microsoft spends $3 billion a year on advertising it’s various products and brands and you can begin to see why this is becoming such a central focus within Microsoft.

It’s great to have a goal, so the next question is how will Microsoft strive to achieve a 12 billion dollar yearly run rate? It will be a major transition going from a software services model to a marketing-services/audience company. It looks as though acquisition will be the plan of attack. Looking back to the recent acquisitions of Avenue A/Razorfish, AdECN, in-game ad serving company Massive and mobile network Screen Tonic shows the initial steps in this direction. There are also many rumors swirling that Microsoft is targeting a deal with Yahoo. Microsoft currently has a goal of 30% of the market where their current search share is 11% and Yahoo currently owns 23% whereas Google owns 56.5%. 

It is true than many agencies outsource the technology pieces and focus on being a strategic partner. Microsoft looks to be focusing on all sides of Marketing-services and advertising. Avenue A/Razorfish highlights the desire to learn more about agency style work while they simultaneously are working on gaining market share in online advertising. This is an interesting move considering that Microsoft is a very partner driven company to date. Product implementation and customization services are handled by Microsoft Consulting Services and various partners from the partner program. And currently Microsoft leverages the services of Young & Rubicam and MRM Worldwide to handle the advertising for its various lines of business. It will be very interesting to see how the acquisitions will go on the Marketing-Services side.

If any team can do it (funding and understanding of technology) it is Microsoft. They have always followed a second to the market mentality, or make it better and faster and endlessly market it. Agency style marketing is not in the corporate Microsoft DNA so it will be very interesting to watch over the next few years.

How Do I???

While traveling to London meeting with some of our European clients some common questions arose that we get quite often. How do I measure what is going on with my community? How can I calculate the health of my community? How do I identify key influencers in my community? How will this data help me develop a profile about my users? How do I back up my request for additional budget when it comes to social networking solutions vs. traditional marketing avenues? These are all great questions and ones we at Telligent are happy to answer.

I have talked in the past about calculating B2C return on investment. Prior to calculating return on investment, a common understanding of measurable business objectives needs to take place. This can come in the form of basing your analysis on such things as incremental value of the community, to trending the current userbase over time. The key to this is that the variables selected are measurable.

Once you have defined the measurable business objectives it is now time to analyze the data. With this in mind we have focused on developing a new framework to report on the data within Community Server implementations in the form of an Enterprise Reporting Suite. The new Enterprise Reporting Suite will ship with over 60 different reports and charts to help you understand exactly what is happening in your community. The reports will quickly show you such vital user information such as users by day, roles, points, posts, registrations, activity, country. The remaining reports are directly tied to which applications are currently enabled. This will allow you to quickly build a user profile and discover what information is truly valuable to your community.

The data in and of itself is invaluable, now you have the means to manipulate the data based on your measurable business objectives as well as easily writing new reports specific to your needs. Once you have the data in hand then it is a matter of defining which ROI scenario makes the most sense for your given situation, B2B, B2C, or E2E (Employee to Employee) or leveraging a metric such as the conversation index (Total Posts/Comments + Trackbacks + Ratings) to calculate impact of blog posts. I will be posting more about the ROI scenario’s in future posts but note if you need immediate assistance in defining ROI around your current community initiative please do not hesitate to e-mail me.

A comprehensive demo of the Enterprise Reporting Suite is available athttp://reports.communityserver.org/demo/. The reporting package will begin it’s beta testing in early October and will be a must have for any marketing or community manager running aprofessional or enterprise instance of Community Server.

The Halo 3 Marketing Machine

While flying to New York today I was reading an industry magazine and came across a Halo 3 cross-promotional ad that caught my attention. Outside of this ad featuring Halo 3 & 7-11, the teams at Bungie and Microsoft are collaborating with a number of brands and agencies, including the same team that brought you 7-11’s transformed into Kwik-E-Marts, to kick off a Halo 3 go-to-market campaign that will be assaulting mainstream audiences faster than Master Chief can blast a covenant elite with a dual-wielded mauler.

It looks as though Halo 3 inspired Mountain Dew will be flying into 7-11 sometime in August. This promotion will also see Halo 3 Slurpee cups and Master Chief emblazoned bags of Doritos. The Doritos campaign will be tied to a voice cameo contest for the upcoming Ensemble Studios Halo Wars title. I have been very impressed with 7-11’s strategy over the past year. You would not think that a convenience store would have this type of marketing prowess but the proof is in the tie-in’s… Spider Man, the Simpsons, and Halo. And this only accounts for campaigns launched in 2007.

Regarding Halo’s GTM strategy, other brands will also leverage Master Chief to help cross-promote their offerings. Pontiac, Burger King and even a Halo 3 sponsorship for an upcoming music tour featuring acts like Linkin Park are just a few of the publicly available elements of the upcoming campaign. All of this does not include the Microsoft centric items such as Halo 3 branded Xbox 360’s, controllers and Zunes.

What this tells me is that the point is no longer to just make a game that entertains. The main goal now is to develop something that can transcend a niche genre and break through to the mainstream. It happened with Pac Man in the 80’s, it has happened with the Electronic Arts Madden franchise which is the best selling franchise of all time and now Halo is primed to cross into the mainstream by following the road taken by many a Hollywood blockbuster… meaning directly into kids meals at Burger King and on the bag of chips you eat in your living room… while playing Halo 3. Who says marketing doesn’t work?

MasterChief

20,000 Points

It is finally official. I have reached the 20,000K gamerscore mark!!! I have expressed in the past that I am an avid gamer and I enjoy the work that we do with various gaming studios such as Electronic Arts.

One thing about me is that I am very competitive and focused on results. I like to set goals and subsequently achieve them. This coincides very well with the Xbox 360 achievement system as you get a very measurable ROI metric out of your gaming experience.

Gaming is a lot like marketing in that you select a specific vertical that you want to target. For example, I like to focus on sports and retro titles. Then I formulate a plan based on the market segment that I have selected. I review the achievements that are available with each game prior to playing to predetermine ratios around potential time spent on pursuit of the goal vs. actualization of the achievement and then move towards the execution phase of the plan. Once the plan is put into motion it is very easy to then determine success of the strategy. And it is just a lot of fun to have the achievement pop-up on my screen once I have earned the achievement.

So is a 20K gamerscore required to be a good marketer? Not at all… All it shows is that you spend a lot of time looking at a screen. Speaking of which I have to thank my wife and children for allowing me the “small” amounts of time that I spend on…. market research. I also would like to thank the guys at EA for giving me the hookup on the best EA titles.

Thanks again! On to 30K!!!

Microsoft + Electronic Arts = In-game Advertising?

Coming to you live from Oklahoma City. Wi-Fi in a hospital room, who would have thought it was possible? No I am not in the hospital just blogging from one. So Microsoft and Electronic Arts have partnered together to sign the largest in-game advertising deal to date. Initially the campaign will be rolled out to the Sports titles like Madden, Nascar, Tiger Woods and Skate.

The reason this is possible now is how connected most gamers are. Think about some of the current titles in your library. You can get up to the minute ESPN feeds and updates now when the game fires up in NBA Live 07 and other EA titles. These feeds are a precursor of what’s to come. In reviewing research for this post it turns out that there are 4.4 million connected gaming console households. With 46 million game consoles in homes and another 148 million people with access to gaming consoles these numbers will continue to increase. So needless to say it is very appealing to advertisers to want to reach this segment of the population as this is a key demographic for positioning products and services.

All of the major consoles now have an online presence with Xbox leading the way online and the Wii attracting scores of new gamers. The industry is definitely in for additional growth online. So this all leads to the million dollar question… er the $600 million dollar question (market projection in 3 years)… Do you want ads in your games? It is nice to see the Dodge ads on the billboards in Crackdown and it does add to the realism in games, but how would you respond to something that interupts game play?

Personally, I like the subtle (or sometimes not so subtle) product placement approach in most films. It is about characters interacting with name brand products but not about the product itself. This to me has more impact and would make me more likely to remember the reference than stopping in the middle to see a pop-up or ticker during game play.

So whether you are a fan or not, In-game advertising is coming and in a big way. There are too many dollars and distractions these days to not take this medium seriously. What do you think? Are you for, opposed or just in-different to in-game advertising? In the end it will be your dollars that do the talking.

Is That a Kwik-E Mart???

7-11 just did something that is pretty innovative from a marketing standpoint. They have transformed a dozen stores into Kwik-E-Marts from The Simpsons in an effort to promote the upcoming Simpson’s movie. I really like this campaign as it is a great example of reverse product placement and by the buzz and lines at the store I went to today it seems to be working.

KrustyO’s, Squishees, Buzz cola and the ever famous pink Homer Simpson donuts are just a few of the products that you can now pick up and take home with you and as they state have “absolutely no nutritional value”. For those of you wondering, Duff beer did not make the product cut for this promotion.

The ability of 7-11 to “laugh at itself” is very key in this promotion. “The idea of actually changing the stores into Kwik-E-Marts was over the top but a natural” stated one of the execs at 7-11‘s agency. “It shows they get the joke”. You would not think decorating a store to look like a cartoon would be that effective, but they are definitely reaching a new audience as I saw people in the store today that you normally would not see going to a 7-11 for a specific purpose.

It is funny that I get this excited around a campaign, but as an instructor of marketing and a marketing professional, it is great to see creative application of marketing strategy and the ability of a proven brand to embrace something that is “different” in order to garner additional attention. Plus it is just a lot of fun.

Tom-simpsons-7-11

Viral Marketing & SMO

Viral Marketing is now one of the most powerful ways to market online. The key to viral success comes down to interruption vs. invitation. Traditional media such as television has the potential to reach hundreds of millions but the message may not resonate or be clearly discerned by the prospective target audience due to the “noise” and passive positioning associated with this type of delivery. The beauty of viral messaging is that it has a much better chance to get the users attention as the message is either coming from a trusted source, a recommendation, or meets the search criteria defined by the user.  Also, this type of message is available on-demand which gives the user ultimate control over when and where consumption occurs.

One viral aspect that is getting a lot of attention is online video. If you are reading this you have more than likely viewed a user created video on YouTube or some other site and you are not alone.  Online video is beginning to garner more attention from average viewers with 4% of people over the age of 18 watching videos daily and another 14% watching at least once a week. Research shows more organizations will be shifting marketing dollars to producing and positioning online videos. The reason for the shift is that video ads show a propensity to generate higher ad interaction and longer ad viewing (2/3 of the way through on average) this in turn leads to higher click-through rates.

So as an organization you may be thinking about focusing on online video or maybe you are looking to tie into user generated content and incorporate your advertising. If so, you need to focus on a few key factors. As with any type of marketing activity consistency is the key. Ensure that you are intrinsically linked to your brand, your video should require online interactivity and it needs to have synergy with offline marketing material. The other key factor revolves around the concept of Social Media Optimization or SMO.

SMO is the process of optimizing your online media presence by becoming more visible through searches within online communities and community web sites. The concept of SMO is to increase the chances of your video being distributed more widely through community search engines. This is very important as this is the key driver for this type of viral strategy.

As you consider your viral strategy it may become clear that you need a solid community presence associated with your brand. This is where branded community offerings can be applicable. Integrated platform (Blogs, Forums, File, Photo Galleries, Video & Podcast support, RSS) that streamline the positioning of an online community. Let me know if we can assist you with your community or viral marketing needs. We would be more than happy to assist. Feel free to contact me with questions at tedwards@blackfin360.com