Broadcasting in Digital1 Jul, 2008 By: Jacqueline Renfrow Response
The 2009 transition will eventually change the way that Americans watch TV and the way that marketers buy media for broadcasting on sets, mobile phones and the Internet.
Much of MediaFLO's initial advertising has been in print, broadcast and point-of-sale (POS) promotions by wireless carrier partners. But starting this summer, MediaFLO will focus on local marketing efforts, leading up to a national rollout of the FLO TV service closer to the DTV launch date. Local marketing includes large-scale ads in shopping malls, wild postings, billboards and street teams at events around town — all with a call-to-action from partner carriers.
Levy foresees an increase in marketing spend from both media companies and device manufacturers as the segment becomes a more significant source of revenue for content providers. He adds, "Given that our programming partners have a number of extremely powerful online and offline platforms — from their Web sites and other media properties to regular TV and radio — we would anticipate that they will increasingly leverage those mobile TV services and use mobile TV to generate demand for their other properties."
Movies and Music
DR marketing remains a stronghold in the DVD and music segments of the entertainment industry because of its heavy reliance on very targeted demographics. So it's no surprise that target marketing spend is on the rise for Razor & Tie (R&T), a New York-based entertainment company that sells audio and video products. R&T finds success in marketing a variety of products in multiple genres. This year, the company has continued to find great results in both TV and retail sales with the Buzz Cuts and Kidz Bop series.
Razor & Tie (R&T) has found success in marketing entertainment products like Kidz Bop in multiple channels and has seen return on both television and retail sales.
"In the past 18 months, digital sales — iTunes, Rhapsody, Amazon MP3 — have been adopted by the mass consumer to the point that we're able to drive customers to purchase in an additional channel," says Kathleen Duffy, senior vice president, media director, R&T Media, the DR division of Razor & Tie. "As a multichannel marketer, we're happy to see return on our DR marketing spend via retail, or digitally."
A large portion of R&T's marketing budget goes to DRTV in cable and syndication because it seems to be the most responsive form of advertising for DVDs and music offers. And because of its targeted outlets, R&T is not anticipating any changes in the marketing campaigns come February 2009.
Looking ahead, the entertainment industry will start adopting marketing models that intertwine online video with existing TV campaigns to enhance response.
"I'm also interested in seeing how DR and mobile can work together more effectively," says Duffy. "Right now is a very early time in the mobile commerce market, but the widespread use of SMS texting should ultimately lead to a new revenue stream for DR marketers."
Facts About the 2009 Digital Transition
- 1. Beginning Feb. 17, 2009, TV signals will be broadcast exclusively in digital format
- 2. Today, more than 92 percent of the 1,760 full-power TV stations in the United States already offer digital programming
- 3. Digital allows for better picture and sound, and offers several channels of programming at the same time, known as "multicasting"
- 4. TV sets with a built-in digital tuner, cable connection, satellite dish or another paid service will not be affected
- 5. Any TV set can be made compatible by hooking it up to a DTV converter box
- 6. The National Telecommunications and Information Administration (NTIA) is issuing households up to two converter box coupons, each valued at $40