Cord Cutting On The Rise
SNL Kagan estimates that 10% of U.S. homes--or 12 million of them--will NOT subscribe to a pay TV service by the year 2015. By the end of 2011 alone, 4%--4.5 million homes--will have cut the cord already.
It's been easy so far, for traditional players, to dismiss the prospect of cord-cutting by saying that cable and satellite subscribers are still strong. And that's true, but let's look at all the other content distribution businesses that have gone bankrupt recently:
- Tower Records
It's a good thing to make sure alternative strategy is ready to go sooner rather than later.
Cord Cutting Drives Brands To Social Media
Over on the social media side of life, the number of brand campaigns run on Facebook more than doubled from the first quarter of 2011 to the second quarter, according to TBG's digital & marketing technology firm--with many of those campaigns designed to build up a brand fan-base on Facebook.
Now interestingly, campaigns that had the highest ROI and engagement were targeted to existing fans rather than non-fans. So the key is not just growing a fan-base, but marketing your offers and promotions strategically to those fans once you get them.
Speaking of marketing on Facebook, brands may also want to understand why consumers share messages, videos, and other things online. And the New York Times Consumer Insight Group found in its research that people share because they want to bring valuable or entertaining content to others, because sharing helps define who they are, and because it's a way to grow and nourish relationships.
So brands and advertisers should keep that in mind and aim to appeal to those motivations to connect with other people and not just the brand. And also, keep the message simple, and use humor.