Dying is Easy, Digital is Hard

For the past week, I attended the three-day ARF Research Conference, which focuses on digital media.

The first session focused on finding the clear direction in a time of digital confusion. Alan Wurtzel, President of Research & Media Development, NBC Universal. Alan started with the tape that highlighted the importance of research to NBC. Alan started off with predictions from the past years, which included one from Josh Bernoff 1989 that predicted the end of network TV.

The next topic of discussion was how in the current times the pace of innovation changed.

“It took PC 17 years to overtake America; It took DVR 5 years,” said Wurtzel of NBC

“Dying is easy, the digital is hard,” Alan says. He followed by saying that the confusion can only be resolved with research, and measuring digital. NBC has been making substantial investments, focusing on three primary issues:

What is the future of the industry?

The old models do not work any more. Some predict that traditional media is ending. Alan said that as opposed to many who believe the end of traditional media, he believed media is entering the golden age.

An example, TV time has grown to 8.25h in comparison to last year.

How do new media technologies affect traditional media and consumer behaviors?

Impact of DVR: DVR turned out to be the friend of traditional media. DVR added almost 1/3 to the ratings of the program. Before the advent of the DVR, NBC would have lost the DVR users who would choose to watch their number one choice.

Fast forwarding commercials: Death of the 30-second spot, to test that NBC conducted a study. They found out that 42% ads were recalled when the users fast-forwarded through the DVR tape. As the speed of fast forward increases, the mind still absorbs advertising. Through the research, NBC shared several actionable rules.

Cannibalization: NBC’s research says that they are not worried about cannibalization. Some use Internet as the DVR, others use Internet to watch shows for second or third time, and the last groups samples shows.

How do we advertise and market at 360-degree cross-platform media?

Alan shared a case study for “Fantastic Four,” campaign. They used Heroes to advertise the FOX film, “Fantastic Four.”

· Eleven percent of people who saw Heroes promotion went to see the movie in the opening day. In August, NBC is launching a research lab, which will cost them over 1B dollars to measure how Olympics are consumed across the media. The Olympics will enable NBC to measure reach, frequency, and return of investments.

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In summary, the takeaways are:

· Job security for researches

· Dying is easy, digital is hard

o Technology and consumers are a constantly moving target, with some of them being” lots of smoke.”

o Half of what we are thinking in digital will be wrong

- If we cannot measure it, we can’t sell it

- There is no “low hanging research fruit in research.