Thursday, October 22, 2009

Without Subscriber Names, Murdoch Might Break with Kindle

When you go to a kiosk and buy that day's Wall Street Journal, you can be fairly certain that no one's going to request your name and address and send that information back to News Corp. says Wendy Davis, Media Post writer. And when you go to a library and borrow, say, Selena Robert's "A-Rod," it's not likely that your librarian will ever tell Harper Collins -- or anyone else -- that you've done so. Should the situation be different for digital newspapers and books? Rupert Murdoch apparently thinks the answer is yes. In a statement that appears tone deaf to the privacy concerns surrounding digital media, the head of News Corp. recently announced that the company might stop allowing its material to be sold on the Kindle because Amazon doesn't disclose subscriber names. "Kindle treats them as their subscribers, not as ours, and I think that will eventually cause a break with us," he said this week. Techdirt's Mike Masnick points out that consumers might not be thrilled by an Amazon decision to reveal users' identities. And, realistically, at least people would almost certainly object to Amazon sharing any information at all with publishers. On the other hand, many others might not be troubled should Amazon share information about them. In fact, they might be happy to reveal their identities to publishers -- perhaps because they hope to then receive discounts. But that doesn't mean that companies like News Corp. can demand that Amazon share information about consumers. Consider, News Corp's own advertisers probably would like the names or contact information of people who click on ads at the Journal's site. Perhaps those readers wouldn't mind sharing that information, either. But News Corp. presumably wouldn't just hand that information over -- at least not without people's consent.

Monday, October 19, 2009

10 Things You Should Know About U.S. Hispanics

1. Hispanics are connecting twice as fast as the general market (14% growth vs. 7%) adding over a million users per year. In 2008 there were 23 million Hispanics online, about 52% of the Hispanic population. In 2012 more than 29 million will be online increasing Internet penetration to 58.6%. Living a connected, collective and spontaneous life is a fundamental Hispanic value and desire. Technology that facilitates connecting, sharing, entertaining and learning is rapidly becoming indispensable for the majority of Hispanics. We are referring to those that are connecting on their computers; recent figures put 57% of Hispanics going online through their mobile phones. 2. The growing Hispanic middle class is super connected: 88% of Hispanics with a household income of $50,000 + are online. For categories such as technology, consumer electronics, financial services and travel, connecting with consumers where they explore your products, research options, share experiences with communities, and ultimately buy your products is not an option, it's a necessity. 3. Hispanics are early adopters of mobile technology: 31 million have a mobile phone. By the age of 15, penetration of wireless services is 64%, by 17, it rises to 78%. Hispanics have the highest proportion of cord-cutters among all segments. For the most part, mobile marketing is not really on the radar as a consistent Hispanic marketing strategy. The challenge and opportunity of mobile marketing seems to lie in truly capitalizing on the relationship people have with their mobile devices. The mobile phone is not just another screen onto which ads are sent. It represents an opportunity to fundamentally change the relationship between brand and consumer. 4. Hispanics will spend money on what they really want: They spend 42% more on mobile devices and 35% more on data services than the average user. Convention tells us that the Hispanic market is very value-conscious and often makes purchase decisions based on price. When it comes to technology, the opposite has proven to be true. 5. Roughly half of the Hispanics online prefer Spanish, and for 66% it's important to be recognized as Hispanic through culturally relevant content. Online Hispanics move from Spanish to English and back again in different moments of an interactive brand experience. And far from being a disadvantage, this kind of fluid activity opens up interesting opportunities that helps them to customize their online experience. 6. Hispanics are dynamic content creators and consumers: Two-thirds of online Hispanics use the Web to view other consumers' content and 40% create content and provide their opinions online. Initially generated due to a lack of relevant and in-language content, consumer-generated content in the Hispanic market has taken on a life of its own. Hispanics dramatically outpace the general market in creating and sharing content, and few brands have figured out how to be part of the process creatively. The challenge is to support consumers, provide resources and even become part of the process without imposing artificial restrictions or values. 7. Entertainment content main appeal for online engagement: 37% listen to Internet radio vs. just 30% of non-Hispanics and 36% download music vs. just 29% of non-Hispanics. They represent a captive consumer that is willing to spend time, and in many cases, money for entertainment content online. 8. An online collective life: 77% engage in some kind of online socializing. 40% are part of a social network. An estimated 20% of Hispanics online are considered "Hispanic-fluentials." If word of mouth is key to any successful Hispanic marketing initiative, the online space has taken the dynamic to another level. Online, the collective hyper-social Hispanic cultural dynamic can be expressed, explored and developed without limits. 9. Multi-tasking: Part of the Hispanic DNA. On average, Hispanics spend 17 hours per week online, but they spend 14 hours per day with a technology device (versus 8 hours for the general population). The big opportunity: moving focus from one screen to three, dynamically connected screens. Because of their higher propensity to use converged technology, this consumer is the perfect target for developing truly integrated multi-channel campaigns. 10. Hispanic online landscape is less crowded: Interactive Advertising Media Investment represented 4.6% in 2007, while in the general market, it is around 7%. The online Hispanic opportunity is not only about a big and growing market, or about consumers that are eager to engage. Brands that go in and engage the consumer first have a unique opportunity to establish themselves as first movers and true resources for Hispanic consumers.