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Time Warner Goes Hollywood With Viral Ad Marketing Strategy
21 Oct, 2008Time Warner Cable (TWC) is looking to take a page from Britney Spears and Paris Hilton with a new viral video marketing strategy called Fame Star. The new marketing strategy allows customers to create fictional biopic videos of themselves, chronicling their rise to fame, and subsequent fall. It’s a play on the Hollywood pop culture scene, represented by popular tabloid “journalism” outlets like Access Hollywood and People Magazine. Users can create their own videos and share them with friends and family. TWC is hoping for a huge “viral” hit that could potentially reach millions of consumers. TWC products and brands are referenced throughout each video. There are also direct marketing tools on the Fame Star site, including TWC comparisons to Verizon FiOS and AT&T U-verse.
It’s an interesting strategy – one that is representative of the times. Service providers are constantly evaluating and executing strategies that try to leverage web 2.0 and the “long tail” phenomena, with mixed success. It’s no secret that reaching consumers through traditional marketing and media buys is increasingly difficult. When viral campaigns catch fire, they can reach millions at a fraction of the cost of traditional media outreach. The truly successful ones are few and far between. Give TWC credit for trying. As the famous hockey player Wayne Gretzky said, “You miss 100% of the shots you don’t take.”
Skype/MySpace Partnership Illustrates Web 2.0 Influence on Telecom
17 Oct, 2007
Skype and MySpace are partnering to allow MySpace members to use Skype as a communications tool on their MySpace profile. MySpace has 120 million members across 20 countries. The partnership will allow MySpace members who are also Skype subscribers to insert a Skype button/widget in their MySpace profile, providing VoIP connectivity. PC-to-PC calling will be free, but MySpace will introduce a number of revenue generating "premium" features such as personal phone numbers, voice mail, call forwarding, and PC-to-landline/wireless calling. Terms of the partnership have MySpace and Skype sharing revenue.
This partnership illustrates the growing influence of web 2.0 on traditional telecom. Web 2.0 applications further erode the usefulness of traditional landline telephony, especially among youth. As more and more subscribers utilize web applications for social networking and entertainment consumption, their desire to incorporate communications functionality into those experiences increases significantly. This MySpace/Skype partnership is a perfect example of that. While it’s too early to tell the impact of this announcement (execution of these partnerships is always a wildcard), it does shed light on the possibilities that Web 2.0 offers telecom. It challenges traditional telecom carriers to recognize that their business is evolving – and quickly. Sure, we always talk about this evolution on conference panels and webinars, but here is proof positive. Traditional carriers should recognize that Skype, and companies like them, including Jajah, don’t have to be the only Web 2.0 players. Couldn't this partnership announcement just as easily have been between MySpace and Verizon? Maybe, maybe not - it all depends on your perspective. Seems to me, Verizon's 60 million+ wireless subscribers (not to mention their partner Vodaphone's global reach) would add tremendous value to this proposition. One thing is certain. As mass markets become more Web 2.0 savvy, telecom carriers will need to be proactive to ensure they don't entirely lose this opportunity to Skype and others.
Alltel Pushing Traditional Telecom Marketing Envelope
08 Oct, 2007
Alltel has embraced Web 2.0 marketing methods, and appears to be seeing some success. Ad Week magazine examines some of Alltel’s web marketing strategies which includes MySpace pages and stand alone flash websites. The marketing campaigns feature Chad, Alltel’s fictional “cool” employee. Chad’s MySpace page quickly garnered 3,500 “friends” A stand alone flash website followed, centered on the ManCave, where bungling employees from Alltel’s competitors meet and plot how to defeat Chad.
Ad Week points out that much of the marketing throughout this entire web campaign is much more subtle than other similarly developed web campaigns. Nevertheless, Alltel’s Chad and corresponding ManCave strategy has built a solid following. Alltel admits that the promotion is a long term exercise and that the results from this strategy won’t be realized for some time. For right now, it’s a branding exercise. One that Alltel is quite pleased with, especially considering the costs are relatively low, when compared with more traditional media advertising and marketing tactics.
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Should Telephone Service be Free?
12 Oct, 2008
Comcast announced a new promotion last week that offers 12 months of free basic cable service for new customers who also sign up for an additional service. Customers who don’t want an additional service can get Comcast’s basic service of about 20 -30 channels for $10/month. The promotion is tied to the digital TV transition of February 2009 and entices potential customers to avoid the transition “hassle” by getting “free” cable service. “The simple fact is that basic cable is the easiest path through the digital transition and now consumers can get it for free,” said Derek Harrar, General Manager and Senior Vice President, Video Services for Comcast in a company statement. This move is similar to strategies pursued by other video service providers, who are hoping to leverage the digital TV transition for new subscriber additions.
But is this strategy a leading indicator for the future? Should basic core services like basic cable and basic telephone service be offered for free, used as a “carrot” to entice customers to buy “more important” services like broadband? Maybe a very basic phone service, with no LD, access to landline 911, and maybe outgoing service only (to avoid telemarketers) should be a free component of a bundled offering. Such a wireline service may appeal to a customer who previously cut the cord for wireless only, but also needs broadband. There is a growing portion of the population who find the value of traditional wireline phone service elsewhere – either through wireless or broadband/IP services. But, if they could get the security of landline 911, and an extra dial tone in their home as a free value add for subscribing to broadband (or video from a telco’s perspective), maybe a telco’s bundled offering may look more attractive than a comparable cable offering. I realize this idea is not appealing to the hundreds of ILECs who are a part of the current access/settlement system (in fact, it couldn’t work in the context of today’s regulatory structure), but I wonder whether it’s inevitable. In this possible future scenario, the current settlement system adapts to broadband as the underlying service, as opposed to voice.
This scenario cuts both ways. From a cable company’s perspective, a growing portion of the population is turning to the Internet as a source for their video content, and no longer see value in paying for a broad package of video as a part of a traditional subscription pay-TV service. But, if they could receive basic TV (which includes local broadcast affiliates) as a free value add for buying broadband, maybe the cable bundle is more attractive. In a true IP/broadband world, very basic phone and video service is relatively easy to deliver, and has little impact on bandwidth and network performance. Maybe the digital transition is opening the door to a future where free basic services are a regular component of a bundled offering. Thoughts?

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