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Time Warner Goes Hollywood With Viral Ad Marketing Strategy
21 Oct, 2008
Time 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.”
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googleEmbarq LaunchesYouTube Channel
06 Oct, 2008
Embarq announced the launch of an Embarq YouTube channel, which will feature instructional videos for Embarq services. Embarq says the strategy will “bring customer service to the customer.” As of this posting, the Embarq channel had 17 instructional videos for things like Embarq email, the eGo phone, and several promotional videos about RescueIT, their residential tech support service. "The YouTube Channel is another way for us to show our customers that we are here for them," said Dan Alcazar, Embarq Consumer Marketing Officer. "From this site, we can use videos to provide them with step-by-step instructions while actively listening and responding to their questions and concerns." Embarq is promoting the new channel through a user generated content contest, inviting customers to upload a “48 second” video demonstrating their unique talent. Kind of reminds me of David Letterman’s “stupid human tricks.”
With this new YouTube channel, Embarq joins most major service providers, including AT&T, Verizon, and Sprint, to name a few, who have YouTube channels. They’re all trying to figure out how to tap YouTube’s mass appeal for their own gain. Embarq’s twist on it is interesting. I didn’t do an exhaustive search, but I didn’t see other service provider examples of a customer service angle. Most are using it strictly for promotional purposes. Of course Embarq is too, but using the customer service hook seems to be unique, for now.
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Competitive Watch - we watch the industry so you don't have to. cWatch lists the latest new competitive telecom offerings, providing you first hand knowledge of who is doing what. Check back regularly to gain competitive intelligence, ideas, and analysis. Give us your opinion - what is the impact of these new service offerings?
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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?