Rather than concentrating on total audience, media companies should concentrate on the net future value of each individual (reader). There are more ways to recognize value than in the traditional way of selling audiences to advertisers. The core value in media is not in the content and not in the size of the audience, the core value of media companies is in the trusted relationships with individuals; in the depth of data of individuals and in the generated level of relevance for each individual. Key question is: how to add and extract that value? People used to say that information is power, but that's no longer the case. It's analysis and use of the data that is the power.
Media companies must challenge every assumption about the role of content. Content is not a product to sell, but a device to generate and gain more signals & information about each individual content-user. Smart media companies are able to use that data to target (branded) content, services, m-Commerce, t-Commerce, e-Commerce, marketing partnerships, commercial conversations and advertising.
Media companies must also challenge their current, outdated, irrelevant, KPI's.
The challenge with KPI's is selecting the right ones. The key requirement for leading indicators is that we track them because there is a demonstrable link with key future outcome indicators.
In his book 'How brands grow' Byron Sharp proves that 'retention-percentage' and 'defection-percentage' are currently often used, but misleading outcome indicators. Key Outcome Indicators (KOI) are 'penetration-percentage' and 'purchase'/'sales'.
Neuroscience has proven that former leading indicators as 'awareness' and 'consideration' are misleading. 90% of our purchases are processed by the brain's subconscious. What should be Key Leading Indicators (KLI)? Our project 'Van hersen-scan tot kassa-scan' will learn us what kind of brain activation patterns will be Key Leading Indicators.
maandag 1 augustus 2011
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About the author
- David de Boer
- Manager Marketing Intelligence Sales, Sanoma Media Netherlands david.deboer@sanomamedia.nl www.twitter.com/daviddeboer
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