Smart Brands will become publishers of their own content. Some of them already are (Nike has produced around 10,000 pieces of content so far). And I don’t mean putting up a page on Facebook and asking consumers to “like” it. That doesn’t count as publishing, or content, and IMHO, is not worth much as a marketing tool.
What I’m talking about is creating video content which is interesting and engaging, and then publishing it on multiple platforms for the public to enjoy.
Last week I attended the Brand Innovation Summit, which was organized by NATPE, and held in New York. It’s a rather grandiose name for such a poorly attended affair, but the subject was Branded Content, and at least half of the panels were worth listening to. The event took place at JWT’s office, so there was a noticeable emphasis on brands that JWT works for and projects that JWT has executed. Which was fine, because it turns out that they have had some notable success in this space.
The most interesting case study was done for Macy’s, and I confess that I knew nothing about it until the Macy’s CMO was interviewed on the subject by Mike Wiese, who heads up the Branded Content department at JWT. The idea started with this story about a little girl who wrote into Macy’s asking if there is a Santa Clause (this happened in 1897). The story has been done for TV once before, but someone came up with the idea of turning the story into a CG-animated TV special for Christmas, and Macy’s agreed to finance it. Thus was born “Yes, Virginia”, a half-hour special (which looked, from the clips they showed, like a fun, family-friendly Christmas program).
This project is not only a great example of a successful Branded Content effort, but also of transmedia storytelling. Once the show was completed, they put it on the air (on CBS). But the story was also rolled out as window displays in stores all over the country, then sold as a DVD for home viewing, and they even made the heroine into a giant balloon for the Thanksgiving Day parade. And everywhere that the story or character appeared, including a good deal of promotional materials, the Macy’s brand went along to take credit. Although no numbers were shared during the talk, it sounds like a very good deal for Macy’s, who may have recouped much of the cost of the production from income the program derived in the way all TV programs make money (advertising and DVD sales). Plus they can run it again year after year. What a score for Macy’s.
That’s just one example, and I’m sure there will be many more Brands moving into the content business as the ROI is demonstrated. There are institutional challenges in Client organizations that make selling these types of programs difficult, and those were discussed as well, but I’ll save that discussion for a future post.
Probably my favorite panel was the last one, titled “Gatekeeping in the Digital Age”. This was a wide-ranging discussion amongst representatives of the big Digital portals (AOL, Yahoo!, MSN, Alloy Media). I can’t possibly summarize all that was debated over the hour-long session, but I do remember one interesting fact that was brought up. Spending on online video advertising is now around $2 billion/ year, up 40% from last year. And the prediction for next year is around $2.7 billion. No one with knowledge of the media business expects this growth to slow any time soon. So, although it’s still just a drop in the bucket compared to the $80 billion spent on traditional TV advertising, it’s starting to become a real business. One that can support original programming, with all the changes that prospect entails.
The next few years should be very interesting for Producers of all types of content.