Mobile in Media: A Q&A with Susan Whiting at Mobile World Congress 2013

Nielsen Wire 

February 27, 2013

Nielsen Vice Chair Susan Whiting delivered a keynote presentation and participated in a panel session at Mobile World Congress, the world's largest mobile conference today. The event is attended by tens of thousands of people from more than 200 countries representing carriers, technology and consumer brands, and device manufacturers, among others. The topic of the keynote presentation was "Mobile in Media" and examined some of the disruptions taking place around content consumption. In this Q&A, Susan Whiting offers context on the topic and highlights some of the points she made in her presentation.

Q: Your presentation and panel session dealt specifically with the developments, disruptions and patterns as they pertain to mobile content. What do you see as a key need in the area of mobile content?

It is crucial that we make sure we're asking the right questions about mobile. For content creators, the question really is: What do you want to happen? Figuring out that answer is the key to success.

Q: Can you explain what you mean?

The most successful mobile content is action-driven—it performs a task and delivers a clear outcome that satisfies a demand. Think about some of the most widely used apps. Each one solves a problem. Google Maps, Facebook's mobile app, YouTube's app are all popular because they deliver on a need.

Q: Are all mobile users created equal? In other words, do content solutions scale on a global basis?

There are certainly some content solutions that scale in the mobile space. But a mobile user in the U.S. is generally very different from mobile users in developing markets. For example, in Africa, we see very meaningful mobile penetration and use of cell phones for monetary transactions—and these aren't on smartphones. They're doing these transactions on simple feature phones. In major developed markets, cell phones to this point have been less about transactions and more about content consumption.

Q: How do mobile devices fit into the landscape of other devices in our collective world?

Our research shows that consumers are not abandoning one platform for another—they are spending more time than ever viewing and reading content. A report we released here yesterday demonstrates this very clearly. Roughly one-third of Chinese smartphone users we surveyed online said they have actually increased their viewing of traditional TV, despite also watching video on their mobile devices.

Q: Where do you see social media fitting into the world of mobile usage?

Mobile social media networking is, without a doubt, growing on a global basis. And mobile social chatter—with its unrivaled publishing speed and reach—is affecting other media platforms as well. Conversations around TV shows, for example, can have a real-time impact on the success of those shows. There is particularly heavy use of social media during television viewing by people 18 to 24 years old. The way we think about this, and it was discussed in the session here in Barcelona, is that mobile has the ability to amplify conversations taking place, no matter what the topic. We think that presents terrific opportunity.

Q: Is it just age groups we should be thinking about when it comes to understanding mobile habits in more detailed ways?

Well, as they say, age is just a number. It's also just one data point. We have also seen strong trends across age groups, based on ethnicity, race and gender. In the U.S., for instance, we have found that African-Americans, Hispanics and Asians all spend more time on their mobile phones than whites.

Q: Lastly, why is this event important and how does Nielsen fit into a mobile conference of this nature?

Our business is understanding what people watch and what they buy—and they are doing both in the mobile space. We are in a unique position because we have the ability to understand the purchasing habits and viewing habits of people throughout their day—as they toggle back and forth between a mobile device and other platforms. As smartphones and tablets become our constant companions, understanding our complex relationships with them is the key to unlocking huge untapped potential for our clients.

For more insights, download Nielsen reports and webinars, or contact us.
Tags: content solutions, feature phones, mobile content, mobile devices, mobile social networking, smartphones, Susan Whiting
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Indústria da música registra primeira alta desde 1999 e destaca o sucesso de Michel Teló

 

 

Michel Teló disputa prêmio internacional Divulgação

 

 

RIO - No último ano, a indústria da música conseguiu quebrar uma sequência de 12 anos de prejuízos, registrando um aumento pequeno, mas simbólico de 0,3% nas receitas comerciais, somando US$ 16,5 bilhões. Segundo os dados Federação Internacional da Indústria Fonográfica (IFPI) divulgados nessa terça-feira, um dos grandes responsáveis por esse crescimento foi o mercado de música digital, dividido em serviços de streaming e downloads pagos, entre outros, com US$ 5,6 bilhões de arrecadação global. No relatório, a música brasileira ganhou destaque não só pelo tamanho do mercado do país, mas também pelo sucesso estrondoso alcançado por Michel Teló e sua "Ai se eu te pego", que vendeu 7,2 milhões de cópias digitais.

 

 

No Brasil, o mercado de música gravada em formatos físicos e digitais combinados, cresceu 5,13% em relação a 2011. Segundo a Associação Brasileira de Produtores de Discos, ABPD, o resultado positivo do mercado fonográfico em 2012 foi causado principalmente pelo aumento de 83% nas receitas digitais. Ao todo, essa área já representa mais de 28% do mercado físico e digital somados. Na internet, o destaque foi para o crescimento dos downloads de faixas avulsas (+691%), de álbuns completos (+3.525%), de vídeos musicais (+3.370%), impulsionados pela chegada do iTunes, que abriu sua loja para usuários brasileiros em dezembro de 2011.

O ligeiro aumento vem como um alívio para os executivos de gravadoras que viram o valor das vendas despencar de um pico de US$ 28,6 bilhões, com os downloads ilegais e a relutância em abraçar a era digital afetando duramente as receitas desde então. Mais uma vez, foi o setor digital que mostrou o maior crescimento, e pela primeira vez, mais do que compensou as perdas nas receitas físicas.

 

 

"No início da revolução digital, era tema comum dizer que o digital estava matando a música", disse Edgar Berger, presidente internacional da Sony Music Entertainment. "Bem, a realidade é: o digital está salvando a música. Acredito firmemente que isto marca o início de uma história de crescimento global. A indústria tem todos os motivos para ser otimista sobre seu futuro".

 

 

As vendas digitais das gravadoras subiram cerca de 9% no ano passado sobre 2011 e responderam por 34% do rendimento total. As vendas de downloads aumentaram 12%, para 4,3 bilhões de unidades mundialmente. As vendas de álbuns digitais cresceram 17%, para US$ 207 milhões.

 

 

Serviços de assinatura como o Spotify e o Deezer "atingiram a maioridade" no ano passado, de acordo com a IFPI, e devem cruzar a marca de 10% em fatia do total das receitas de música digital pela primeira vez. O Spotify tem mais de cinco milhões de assinantes pagantes, comparado com três milhões no final de 2011, e é a segunda maior fonte de receitas de música digital na Europa. O Deezer também se expandiu rapidamente, chegando a três milhões de assinantes pagantes em todo o mundo.

De acordo com a IFPI, o álbum de maior sucesso de 2012 foi o da cantora britânica Adele, "21", que vendeu 8,3 milhões de cópias depois de alcançar a marca de 18,1 milhões em 2011. A artista norte-americana Taylor Swift ficou em segundo lugar no ano passado com "Red" (5,2 milhões), a banda britânica One Direction tomou a terceira e a quarta posições com "Up All Night" e "Take Me Home", respectivamente (4,5 milhões e 4,4 milhões) e a cantora norte-americana Lana Del Rey ficou em quinto, com "Born to Die" (3,4 milhões).

 

 

Nas paradas de singles digitais, a canadense Carly Rae Jepsen assumiu a liderança com "Call Me Maybe" (12,5 milhões de cópias vendidas), seguida pelo belga-australiano Gotye com "Somebody That I Used to Know" e o sul-coreano Psy com "Gangnam Style". O brasileiro Michel Teló foi o sexto com "Ai se eu te pego", vendido como single digital 7,2 milhões de vezes.

 

 

Embora o foco tenha sido o crescimento do setor digital, as vendas de formatos físicos ainda foram responsáveis por 58% das receitas em 2012, abaixo dos 61% em 2011, e as quedas no mercado de CD em muitos países continuaram a representar grandes desafios. A IFPI, que representa a indústria da música liderada pelos três "grandes" selos Universal, Sony e Warner Music Group, também ressaltou o papel da indústria da música na ampla explosão da mídia digital e social.

 

 

Radio's progress In the digital advertising space.

By: Larry Rosin, Edison Research

A few months ago I had lunch with a friend of mine from Princeton who had started a digital agency with great success. So successful that he sold it to Publicis for $575 million dollars. In the course of our lunch I asked him for his opinion about radio's digital efforts. After he stopped staring into space, followed by him staring at me, he politely told me that he was entirely unaware of any digital efforts by radio. He said he knows there is streaming radio and he is familiar with Pandora. And that was pretty much it.

Then the idea came to me. I went to the good people at the RAB and said: "We should investigate how pervasive this might be, and more to the point we should get a handle on just what people at digital agencies are thinking about radio." The RAB team agreed, and my team at Edison Research began collecting interviews.

Last week at the 2012 Radio Show, I had the pleasure of presenting some clips of the interviews we did with media buyers, planners and executives about the digital revolution and radio's role in it.

Now let me stress – the interviews seen here are not necessarily representative of the vast sweep of digital and ad agency buyers out there. This is not a quantitative survey, the kind you usually see from Edison. This instead is much more along the lines of a Focus Group. The respondents who spoke to us may or may not be speaking for all digital buyers and planners, but they offer a lot of great perspective.

So let's start by duplicating a bit some of the questions I discussed with my friend – just how do you perceive radio? Before viewing – let me warn you – some of these answers are pretty negative. But take heart – over the course of this presentation many of the answers will be more positive and constructive. But let me not take THAT too far either – radio has a ton of work to do in this space.

Let's dive in – what is your perception of radio's role in the digital space?

Yeah – ouch. Small audiences, worse than TV and Radio, and in that context the comment of the last lady about not being approached may actually be a good thing. I suppose until we have our acts better in general. Now I should mention that in general these people were almost all responding to our local efforts – although comments about national efforts are coming.

Let's move on then – what is the role that radio can play in digital buys? Here we listen for the things that do come to mind when people are put this question:

Gravy. As of today that seems to be what radio's digital offerings come to for the local buyers.

And now we come to perhaps the single most important item – or at least I thought so – the education of radio reps about digital. Listen closely to this one… In general – these people are not impressed with our salespeople. And I think we should take to heart the comment about 'hyperlinks'. Those little things absolutely DO send a message. And I can't imagine that people trained at the pure-plays are mentioning client's chance to be on "the Information Superhighway" or whatever.

As I said – these people were NOT all negative. Many did come with ideas – and maybe no surprise they said: "Remember your strengths."

And this point is amplified when we talked with our respondents about scale. Those who have looked under the hood of radio station streams and other digital offerings are like Mikayla Maroney – not impressed.

Now as you've been listening to these, it's pretty clear when these people are commenting they are mostly thinking of your streams. Let's see what they said about our sites.

Youch. I don't know what to say about this one except for – are any of them wrong? There are tons of sites with babes of the day and other sketchy content – any many suffer from the Times Square effect where so many things are moving and flashing one can't concentrate on anything.

OK we need some good news. Here's what people said about streaming. And it starts with some of the positives but then some of the negatives and challenges do emerge.

Now let's turn to the big fish – Pandora. What do these buyers know and say about Pandora?

Interesting. They are impressed but some of Pandora's challenges emerge here as well.

Now that one is great. They love radio and the respect it. And they have great ideas.

But where are things going? Well here is where things get interesting – because you have to remember these are people who are involved in the digital side of things. And they crave what radio, to date doesn't have. Watch this one…

And this point is made further when we asked people about where Digital is going in general.

The buyers of today are looking for the mass and response that radio elicits, but they are equally looking for measurability, personalization, efficiency and trackability. Radio has to continue on a parallel path of innovation to provide these items to advertisers or simply watch its portion of the total advertising pie continue to slowly diminish. I hope hearing it from the mouths of these digital media professionals will help you to better understand the challenges and opportunities in front of you.

Categories: blog, research

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• New RAB Report Says Radio Turning Corner In Digital Sales, Growing Share

  February 25, 2013 at 8:50 AM (PT)

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  Study Finds Digital Sales Rising

  Radio gained digital share in 2012, and it looks like many stations are building on that momentum in 2013, according to a report issued by BORRELL ASSOCIATES on behalf of the RAB. Moreover, there appears to be significant profit in local digital sales operations, the report concludes.

  The report, "Benchmarking: Local Radio Stations' Online Revenues," says that radio grew its online ad revenues 22% last year, outpacing the 20% overall increase in local online ad expenditures. That was enough to achieve a share increase of two-tenths of a point, to 2%.

  The report is based on BORRELL's annual industry-wide survey on more than 6,200 local online operations, including more than 2,000 radio stations in 527 clusters. This report analyzes data derived from three principal sources: media ad revenue, local business ad spending, and a special radio manager survey asking questions about digital revenue resources, sales methods, expenses and other digital operations.

  "In terms of digital advertising, radio has been in a come-from-behind position for years," said BORRELL ASSOCIATES CEO GORDON BORRELL. "But it looks like quite a few groups are breaking out and even challenging their newspaper and TV competitors for a slice of that very large digital pie. I hope the data in this report will show radio general managers and general sales managers that it is entirely possible to generate millions in digital sales, and that there's a high likelihood that these sales hold significant profit margins."

  Overall, radio sellers closed $370.7 million in local online advertising last year. BORRELL expects the number to pass $420 million this year as many radio groups double-down on digital sales efforts. Much of that growth will be fueled by stations budgeting for unusually high growth. In a survey of 1,075 radio stations administered in JANUARY as part of the report, 17% said they expect growth of 30% or more this year.

  There's more good news for radio: Stations are diverting their focus from banner advertising and branching out to sell other, more popular formats like e-mail advertising, paid search and even video ads. While banner ads were the largest single source of revenue for 32% of the stations who participated in the survey, the number dropped to 22% for 2013.

  "Digital strategy among radio stations and groups is varied," remarked RAB Pres./CEO ERICA FARBER. "Revenue opportunities continue to grow for those who are pushing the digital limits with online and mobile initiatives. As radio further defines and focuses on monetizing their digital platforms and applications, we will continue to see growth for radio in revenue and market share."

  The full study is available to RAB members on RAB.com. A free webinar featuring the study results will also be presented by the RAB and GORDON BORRELL, THURSDAY, MARCH 7th, 10a CST. To register for the webinar, click here

Indie Music Grabs 32.6% Of U.S. Album Sales In 2012

 

Indie Music Grabs 32.6% Of U.S. Album Sales In 2012

According the A2iM, The American Association For Independent Music, Billboard and SoundScan stats show that independent labels grabbed 32.6% of U.S. album sales in 2012.  As in 2011, indie labels outpaced each of the major label groups grabbing the #1 sales spot followed by Universal, Sony, Warner Music and EMI respectively. This chart breaks sales down by label group:

Billboard chart via A2IM

What Is Indie? Can An Artist Top The Charts Without Help From A Major?

 

http://www.hypebot.com/hypebot/2013/02/indie-artists-still-need-major-help-to-top-the-charts.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+typepad%2FDqMf+%28hypebot%29&utm_content=Netvibes

By Kevin Erickson, Communications Associate, and Olivia Brown, Intern, at The Future Of Music Coalition.

Let’s look at some stats: Jack White’s Blunderbuss, number one debut on the Billboard 200, Third Man Records. Taylor Swift, worth $165 million, Big Machine Records. Adele, 21, more than 26 million records sold, XL Recordings. Gotye’s “Somebody That I Used To Know”, Grammy for Record of the Year, Eleven. Macklemore, a number one single on Billboard’s Hot 100 chart, no label.

With financial success stories like these, many music industry pundits have been quick to celebrate the new “reality” for independent musicians. A quick glance at some media outlets might lead you to believe that all the old gatekeepers have fallen away, or that independent musicians have the same shot at stardom as major-label backed artists. However, these narratives can be misleading.

Take, for example, the artists listed above. Jack White’s Blunderbuss was released on his own imprint… in association with XL Recordings (a large British independent label), and Columbia Records (owned by Sony Music Entertainment.) Taylor Swift has been with Big Machine Records (a Nashville-based independent label) since her debut… but Big Machine is distributed byRepublic Records under the Universal Music Group umbrella.

Both of Adele’s records were released on XL Recordings in England, but she depends on Columbia for distribution and promotion in the United States. Gotye is on Eleven, an Australian independent label, but his music is distributed in the United States by Universal Republic. And Macklemore may not have a label, but as NPR recently pointed out he and Ryan Lewis chose (as many notable indie labels do) to work with Warner-owned Alternative Distribution Alliance for physical distribution, and partnered with Warner Music Group to help promote “Thrift Shop” to radio.

The point of acknowledging these arrangements isn’t to call these artists’ integrity, authenticity or accomplishments into question.  A distribution deal or marketing partnership hardly invalidates the time, creativity and ingenuity required to succeed in today’s marketplace. Rather, the point is to acknowledge that contrary to what some pundits are saying, mainstream chart success still usually requires the resources and reach of certain industry powerhouses at some stage.

An artist may be able to build a successful career through extensive touring, online platforms or other means. But when it comes to clawing your way onto commercial radio or onto the shrinking shelves at big-box retail outlets, a major label partnership can make all the difference.

While each artist’s business model is their own, we should be realistic about what these arrangements mean in terms of the average musicians’ ability to reach audiences. Commercial radio airplay remains the number one outlet for discovery, and big-boxes account for far more music sales than dwindling record shops. Which is to say: we’re still dealing with a deck that seems stacked against smaller players; that hasn’t fundamentally changed in the digital era.

FMC’s own research backs this up to a considerable extent. Our artist revenue streams study found that significant commercial radio airplay remains out of reach for all but a tiny handful of artists.  And our earlier radio-centric researchdemonstrates that commercial playlists tend to be repetitive and narrowly focused on major-label artists. (This, incidentally, is one of the reasons why it’s important to support Low Power FM and non-commercial radio, as these formats offer indies a better shot at airplay. It’s also a reason to oppose further ownership concentration in commercial broadcasting which is likely to worsen this problem.)

Still, there are many gray areas. Where does a “spec deal” – where you remain unsigned, but the label pays for you to record a few tracks – fit in to today’s picture? And how about distribution deals, where the artist pays to record their own music, but a label handles many of the other chores, including promotion? Or distribution and manufacturing deals, where the label is *only* responsible for getting your record pressed and on shelves, but not marketed? What if an artist has no label, but has a major publishing deal? In many instances, independence is clearly not a binary phenomenon.

Hypebot’s Clyde Smith says he’s no longer going to use the term “indie” at all, for a whole host of reasons. We would argue that, at a time when marketplace concentration is becoming more pronounced, it’s good to have some differentiators, even if they are based in business approach rather than sonic aesthetic. The merger of EMI and UMG means that just three companies will control 75 percent of the domestic recorded music industry – how can anyone accurately describe unfair marketplace conditions without a blanket term to describe the  competing 25 percent of the industry (which actually translates to a much larger percentage of the overall pool of artists and releases)?

Perhaps the best way to deal with these grey areas is simply to talk about themmore, and with a little more precision. Instead of simply saying “an indie artist,” try saying “an artist on an independent label with a major distribution deal,” or “a self-released artist with a publishing deal,” as the case may be. This may be a tall order at a time when many fans still confuse “indie” with a set of aesthetics rather than a business model. That said, the more consumers understand the intricacies of the artist experience, the closer we are to creating a future where more artists have a fair shot at success, whatever path they choose to get there.

Nielsen Agrees to Expand Definition of TV Viewing

 

http://www.hollywoodreporter.com/news/nielsen-agrees-expand-definition-tv-422795

 

After a meeting in New York Tuesday, the ratings company will roll out a system to measure broadband, Xbox and, in time, iPads, with more changes to come.

The Nielsen Co. is expanding its definition of television and will introduce a comprehensive plan to capture all video viewing including broadband and Xbox and iPads, several sources tell The Hollywood Reporter.

OUR EDITOR RECOMMENDS

The decision to expand beyond traditional TV ratings measurement came out of a meeting in New York on Tuesday of the What Nielsen Measures Committee, a group that has been meeting for nearly a year. The committee is composed of representatives from major TV networks, local TV stations, cable TV networks, advertising agencies and some big brand advertisers.

STORY: Nielsen and Twitter Partner for Social Media TV Ratings

The decisions made by the committee are not binding but a source at one of the big four networks was ecstatic at the prospect of expanded measurement tools. The networks for years have complained that total viewing of their shows isn't being captured by traditional ratings measurements. This is a move to correct that.

By September 2013, when the next TV season begins, Nielsen expects to have in place new hardware and software tools in the nearly 23,000 TV homes it samples. Those measurement systems will capture viewership not just from the 75 percent of homes that rely on cable, satellite and over the air broadcasts but also viewing via devices that deliver video from streaming services such as Netflix and Amazon, from so-called over-the-top services and from TV enabled game systems like the X-Box and PlayStation.

While some use of iPads and other tablets that receive broadband in the home will be included in the first phase of measurement improvements, a second phase is envisioned to include such devices in a more comprehensive fashion. The second phase is envisioned to roll out on a slower timetable, according to sources, will the overall goal to attempt to capture video viewing of any kind from any source.

Nielsen is said to have an internal goal of being able to measure video viewing on an iPad by the end of this year, a process in which the company will work closely with its clients.

STORY: TV Pilot Season 2013: By the Numbers

The shift doesn’t mean Nielsen will begin to provide ratings data for, say, Netflix. Nielsen will capture how much time is spent on that kind of viewing, but to actually provide ratings, Netflix would have to agree to encode its program signals so that Nielsen software can identify them and trace their source. The traditional TV networks do encode their signals to be compatible with Nielsen’s measurement tools.

Nielsen already captures a small amount of out-of-home viewing, such as at a few colleges. If a student comes from a Nielsen home, his or her TV viewing is tracked when the student goes off to college.

Nielsen also has a “customized” program to capture some viewing in places like college dorms, bars and restaurants. While Nielsen wants to expand its measurement out of home, that is not part of this initiative. Nielsen appears to be waiting until it acquires Arbitron, which does more such out of home measurement, before making that a priority.

A spokesperson for Nielsen declined to comment.

Email: Alex.Benblock@thr.com

Twitter: @ABBlock

Online Learning Platform, edX, Goes International With The Addition Of Six New Schools

 

http://techcrunch.com/2013/02/20/online-learning-platform-edx-goes-international-with-the-addition-of-six-new-schools/

 

When it comes to online education and massive open online courses (a.k.a. “MOOCs”), Udacityand Coursera have stolen most of the attention. But they aren’t the only two choices for voracious distance learners out there; in fact, the number of options has grown considerably.

Last May, Harvard and MIT teamed up to launch edX — their own, high-profile response to Coursera, Udacity and the MOOC-y wave sweeping higher education. Backed by $60 million, the non-profit partnership made courses from both schools available to the public for free via a learning experience designed specifically for interactive study on the Web.

In addition to making the MIT and Harvard learning experience available at scale to learners around the world, edX has been built on top of the open-source MITx platform in effort to allow other institutions to take advantage of its technology and make their courses available through edX. In the big picture, the organization wants universities to be able to use its platform to research the efficacy of online learning and better understand how technology can transform education both in and out of the classroom.

To date, edX has attracted over 675,000 students and edX President Anant Agarwal says that the platform is on track to educate one million students in its first year — the first step in its ambitious goal of educating one billion over the next decade. While MOOCs have traditionally focused on providing students with a variety of online courses for free online, he says that edX’s vision is “much larger.” Through MITx, the goal is to build an open source educational platform and network of the world’s top universities to help improve education both online and on-campus.

In doing so, edX announced today that it is officially expanding its reach from North America to Europe and Asia by doubling the number of its member institutions and will be adding a handful of new courses to its roster. The platform’s international expansion adds six new institutions to the organization’s so-called “X University Consortium,” including Australian National University, Delft University of Technology in the Netherlands, Ecole Polytechnique Federale de Lausanne in Switzerland, McGill University and the University of Toronto in Canada and Rice University in the U.S.

The expansion will enable edX “to better achieve its mission of providing a world-class education for everyone, everywhere,” Agarwal said, and is a natural evolution as the organization looks to beef up support for its increasingly international student body. The institutions will each offer courses in their respective areas of expertise, as Delft University (the oldest technical institution in the Netherlands) will feature “Introduction to Aerospace Engineering” and “Water Treatment Engineering” and the University of Toronto will offer a number of engineering, biology and businesses courses, for example.

“Each of these schools was carefully selected for the distinct expertise and regional influence they bring to the platform,” the edX President said, and their courses will “provide the same rigor” students would find in their classrooms. The difference, of course, is that the classes are designed to leverage the benefits of online learning environments by offering game-ified experiences, cutting-edge laboratories and instant feedback.

The six new members of edX join Harvard and MIT, as well as a handful of other institutions that have joined its ranks since last summer, including University of California at Berkeley, the University of Texas, Wellesley College and Georgetown University.

The new members will begin offering courses on edX beginning in the fall of 2013.

For more info, find edX at home here.