Monthly Archives: January 2008

The Consumer Generated Music Video

 

The early 80’s introduced the music video to the masses via MTV. The music television channel was the first station to offer 24 hour-a-day music videos to the masses. The music industry embraced the music video concept and started pumping videos on a weekly basis. The successful adoption of cable TV by US consumers and the development of relatively low cost and easy to use video recording/editing equipment were the catalyst that made MTV and the music video in specific very successful.

As the popularity of the music video grew so did the cost of making them. Music videos seemed to outdo one another by increasing production costs and special effects. The growth and popularity of music video caused their budgets to increase and resemble a major motion picture operation. In addition, by 1992 directors of music videos were getting recognition and their names were being listed in the song credits.

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photo by Rob Lee

The internet boom, in particular the growth and popularity of videos being viewed, rated, and uploaded onto internet platforms such as Youtube and Metacafe have caused a major shift in consumer viewer ship and interaction. Consumers can now choose which music videos they wish to view, rate , and write commentary about them.

In addition, consumers have become producers of music videos themselves. Todays youth have access to tools needed to create their own music video. With the help of a camcorder, computer, and some basic editing and internet knowledge anyone can produce a music video. This form of consumer generated media (CGM) has become extremely popular among todays internet savvy youth and should be taken noted by the music industry.

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photo by Rob Lee

Some of the top videos on Youtube were produced by consumers. A great example of a consumer generated music video can be seen below. The producer of this music video used a song by Daft Punk and their bare hands in order to create this CGM masterpiece that was viewed by 11,884,528 people on Youtube. The name of this music video is called Daft Hands and was produced by FrEckleStudios.

The music industry will not stop producing music videos in the near future. Instead the music industry should encourage this CGM movement and find ways to collaborate with it and embrace the content that the consumer is creating for the music label. The benefits of using CGM are threefold:

1. Low production costs

2. Provides consumers with positive feedback and encourages them to continue creating original content for the music label

3. CGM content is viewed by other consumers as not being tarnished by corporate agendas and has a stronger “word of mouth” effect

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photo by coey.kerr

Overal, embracing consumer generated content will assist music labels in promoting their music and increasing its reach to consumers in a effective and economical manner.

Martin Fuchs

CGM analyst/planner

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1st2c CGM Report: The Whole Foods Case-Study

The following case study was conducted in September 2007.

There’s nothing wrong in a CEO doing his best to promote his brand. It is perfectly logical for a CEO to communicate with his networked market online. It is quite smart to do so in those places where your brand and business are discussed.

The unwritten rules of consumer-marketer interaction on Internet’s social media have recently been fire-tested and there’s something to be learn out of this experience for every marketer.

For 8 years, John Mackey the visionary entrepreneur who led the Austin, Texas based natural-foods chain Whole Foods chain to meteoric success was active in Yahoo’s stock community. Using the pseudonym “rahodeb” (his wife Deborah’s name spelled backwards), Mr Mackey has been posting messages on various issues regarding his business.

This phenomena known as “Sock Puppeting” exploded early June following an FTC anti-trust lawsuit alleging that Mr Mackey has been posting controversial company information, trashing competition and touting management.

Social media fails to show “CGM autopilot” effect

Such sensation-charged story, with an official “seal of seriousness”, was sure material for a major online consumer backlash and potential consumer antagonism crisis for the Whole Foods brand.

This was an exemplary case study for 1st2c, the forerunner of Online Strategizing Research©, to examine the DNA of an online consumer-driven crisis situation.

A day-by-day monitoring of online consumer resonance indicates that the stereotypical perception of social media as facilitating and encouraging consumer to mobilize against “misbehaving” marketers is too simplistic.

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Story breaking on July 12, 2007 did trigger a huge surge in consumer talk about both John Mackey and Whole Foods. However, as 1st2c tracking report shows, not only did consumer talk return to previous levels from the very next day but also talk on Mackey behaved differently than talk on Whole Foods. That following surge in talk correlated with media coverage to the issue and to Mackey’s apology posted (this time) on Whole Food’s corporate blog on July 17.

Interestingly, blogs were more aggressive and attempting to mobilize mass action than social mind-sharing platforms (like forums and message boards).

Case study takeaways

Analyzing the nature of consumer response 1st2c analysts highlighted these insights:

1. CEO controversiality does not necessarily rub off on the brand If consumers do not perceive the CEO’s “misbehavior” as compromising their health or interests in an immediate and critical way they are likely to judge his or her practices with limited collateral implications on the brand.

2. John Mackey “behaves” as a brand in terms of consumer attention Many of the surges in talk about Mackey correlate with surges of talk about Whole Foods, sometimes in similar volumes. We have noticed such phenomena looking at consumer brands (mostly consumer goods) and see it as indicative of the significant impact these CEOs do or can have on brand equity, both on the negative and positive side.

3. Blogs represent a different audience and play a different role than social networks Blogs are not the mirror of the market! In many cases they are less so than social networks (Forums, message boards, etc.). The active (vs one shot) blogs tend to represent a more maven, activist and influence-oriented audience while social networks tend to represent the “involved masses”.

1st2c will continue to monitor the market and provide consumers and decision makers with better understanding on the dynamics and the rules and tools of engagement in the networked market©.

Engaging the networked market

1st2c was established in late 2004 as a full service Consumer Media research and strategy powerhouse by internet and brand strategy veterans with extensive international experience. 1st2c is a forerunner of the Online Strategizing Research©. This strategic planning driven research provides vivid market pictures, in-depth understanding of market dynamics and seamless transfer of insights and opportunities to actionables. 1st2c employs well-tested and proprietary technologies and covers both one-to-many and many-to-many platforms.

 

Ofer Friedman
Chief Research and Client Officer
1st2c

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A Viral Marketing Video Demonstration

Viral marketing has become a mainstream concept. Yet most articles and videos I encounter on a daily basis do not explain it in basic terms. The following video I have attached below provides a simple and to the point demonstration of what is viral marketing and how it uses consumer advocates to spread the WOM (word of mouth) of a product among consumers. I found it on youtube and it was done by VM-People a viral marketing firm based in Germany.

enjoy

Martin Fuchs

CGM analyst/planner

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