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More so, the channel also creates quite a number of variety shows and programs that satisfy the taste
and preferences of the viewers.
In addition, it also radical and pragmatic in inoculating changes within the industry, and is always a risk-
taker (remember Beavis and Butthead?).
This show may have gotten the ire of some conservative viewers, but it definitely got the patronage of its
market - the youth - the radical youth.
In marketing terms, MTV's strategy is very effective. It was able to properly choose a market, and
segment it. It also adopted a very effective market
penetration strategy, as it airs shows that show radical, pragmatic and out-of-the box ideas and themes. I
guess their executive board, their
top-management, are very fluent with the various marketing strategies such as: Igor Ansoff intensive
growth strategies, the BCG matrix,
and Michael Porter's Five Forces and Generic Strategies.
Article Highlights:
Rapid changes in the way audiences experience content means marketers must now both sell and
entertain at the same time
The lines between the client, agency, and the media company are blurring
At the end of the day, the audience is in charge
For Carolyn Everson, EVP of strategy and operations for MTV Networks, change is part of the job --
change every day,
sometimes even every hour. She knows, however, that the industry has never been a more exciting
place, partly because it has never
been so challenging for marketers to sell their products and entertain their consumers at the same time.
Going forward, it will be almost impossible to separate the sell from the storytelling. Marketers are aware
that the traditional 30-second
advertisement does not have the same impact it used to, and product integration is therefore gaining
ground as a key marketing strategy.
These changes are clearly seen when CMOs collaborate with Everson's team to lead their creative
campaign and solicit creative input to the
tune of even re-packaging their products.
Save the date! Carolyn Everson will be presenting on the state of the digital advertising industry at
ad:tech New York, Nov. 4. Learn more
about ad:tech New York.
The one thing that remains constant, however, is that the audience is king. As Ross Martin, SVP of
programming for MTV 360 puts it, "I report
to the audience."
iMedia spoke with Carolyn Everson on the changes and developing trends in digital marketing, the impact
of product integration with online
entertainment content, and those elusive metrics that uniquely define each marketer's campaign.
iMedia: How has your job evolved over the past two years in keeping with the changes in digital
advertising and online video distribution?
Carolyn Everson: If there is one thing I can say for sure, it's that my job changes every day, sometimes by
the hour. There are new players,
new business models, threats to existing business models, and the pace of consumer change that
basically demand a constant need to evaluate strategy.
However, there has never been a more exciting time to be in this business. Marketers will always have a
need to sell their products,
and I think their job is harder than it has ever been. Consumers will always want to be entertained. If your
business solves those two basic truths,
you are in the sweet spot.
iMedia: What developing trend in digital media and marketing do you see as the "next big thing"?
Everson: Everyday, I see examples of digital learnings and processes making their way into the linear
business -- whether it be from the
consumer angle of social media and the consumer wanting to participate and often lead discussions, to
the advertisers looking for more quantitative
proof that there is an ROI, or the way content is being made, interacted with, and consumed. Digital
advertising is more advanced from a yield
perspective, and the key is finding the target audience and of course allowing the consumer to interact
with advertising in a way that adds value to
their experience. All of this is being translated to the linear experience, and it is just a matter of time
before those distinctions (between linear
and digital) become obsolete.
iMedia: MTV's new production "Valemont" has heavily integrated the Verizon phone, and features
interaction with the content online. Do you feel that
this is the direction all broadcast entertainment is headed: creating branded entertainment through a
variety of platforms?
Everson: I think it might be an overstatement to say all broadcast entertainment is headed in that
direction. However, there is no question that
the most interesting conversations being held in conference rooms and over sushi and beer are between
the "creatives" and marketers. Marketers are
eager to find an authentic way to connect and engage with their consumers, and creatives are just the
right answer if storytelling is the way to do that,
especially given the concerns brought on by DVRs.
I love what I am seeing developing on this front and believe the silos of programming, sales, and
marketing are breaking down, and what we are turning
out in terms of product keeps getting better and better. MTV Networks has been ahead of this curve for
years, challenging the model, and it has produced
award-winning creative (in programming and in-pod) in partnership with advertisers. The reason I don't
think it will scale to all content anytime soon
is that these deals take time, the right talent, and they need to provide the consumer with an enhanced
experience. As an industry, we need to get it
right for our audience and our advertisers.
We formed a group called Digital Fusion, led by Jason Witt, SVP. Digital Fusion is working with clients on
their overall digital strategy, designing
creative, developing content, and consulting our most important accounts. We cannot keep up with the
demand for their services. The model exists in digital, linear, and cross-platform. We see it as a key part
of our future.
Everson: I think there are different levels of response. Some CMOs are risk-averse (and some might say
justifiably so when the average tenure is 18 months)
and look for more traditional solutions (certain level of reach, product placement, etc). Others are on the
cutting edge and abandoning everything they
thought was standard course of practice. We have CMOs who have asked us to lead their creative
campaign, asked for advice on product launches because of
our cultural relevance, asked us to redesign product packaging. Simply put, as a media company, we are
being asked to partner and flex our creative muscle
in ways we have not seen before, so the roles of client, agency, and media company are blurring.
iMedia: What has the response from the consumer been? How do you maintain the integrity of the
entertainment content while still making sure that
the marketers and advertisers get their due?
Everson: One of my key partners on the creative side, Ross Martin, SVP of Programming for MTV 360,
said to me, "I report to the audience."
That sums it up. We all know we cannot let our audience down -- ever. Let's not forget, consumers are
savvy and they get it, they expect it,
and when we do it right, they appreciate it, as our research has shown over and over.
iMedia: What do you see as the most important metric for the success of an online campaign? Do you
see that changing in the near future?
Everson: I wish there was one metric that was most important but there can't be because that would
presume that all marketers have the same goal.
I have clients who measure success based on how many products they sold in the last minute, and I
have other clients who have expectations on brand
love. There is no single measurement that can answer both.
Madhuri Shekar is a new media research intern at Sony Pictures Television, and a freelance social media
marketing consultant.
According to Reuters, "MTV Networks, owner of the MTV and Comedy Central channels, is pushing a
risky new Web strategy to win back young viewers from the
likes of YouTube and MySpace.
The network, which already has 150 websites in 162 countries, plans to build literally thousands more,
hoping to draw viewers by letting them watch,
contribute and even re-edit its television shows."
The article goes on to say, "The move is a risky one for Viacom as it could breed confusion and dilute
corporate branding, especially for a company
whose Web strategy has been difficult to discern."
You should Google and read about this topic for yourself, but with all due respect to Reuters, there is only
one risk -- the risk that MTV will not
go far enough.
MTV's biggest problem is that their audience thinks that MTV also "has" a website. As opposed to
MySpace's audience which does not care if MySpace has
a TV Network. MTV's biggest competitors are not using television distribution to attract their audiences.
Practically the entire constituency spends a
significant amount of time gaming and online. Unfortunately for MTV, it is not a meaningful brand in the
pure-play online environment.
Could MTV (the arbiter of taste for the previous generation) use the power of cable and satellite network
distribution to drive significant traffic to
a series of websites? Sure. Can they rework their web offerings convincingly enough to incentivize
MySpace and YouTube users to come back? Wrong question?
The digital natives have never viewed MTV as a "place" to spend time online. The right question is, does
MTV have consumer permission to evolve into a
media experience that combines the power of online (social networks, if you like), traditional network
television and the myriad other live, event,
wireless and broadband consumer touch-point opportunities?
It's a multi-million dollar question. So, just for fun, let's do a thought experiment. For the sake of argument,
pretend that MySpace was MTVSpace.
Would MTV be any better off than it is now? Take it a step further and pretend that YouTube was
MTVTube. Does that help or hurt? Assuming that you
had this generation coming and going, TV, Internet, Internet Video -- would it help MTV?
There's no right answer to this question because the hypothetical case is not something that could ever
exist. But it is instructive to think about
how the business model for MTV Networks might change if they were able to conglomerate two of the
biggest aggregators of youthful eyeballs.
I submit that there is no way for MTV (the television channel) to evolve into an online play without a
complete commitment to that medium.
In reality, MTVTube with a strong social network component, fully backed by the promotional power of
the TV network is all they can ever hope to
achieve. Can it be done?
There is one little sticking point with this plan. No matter how much credit you give this generation for
multi-tasking, there is a limit to how
effectively you can divide narrative television viewing and time online. Everyone knows that people IM
constantly during TV shows and spend quality
time ignoring commercials during breaks. With an average TV hour being between 40-44 minutes long,
there is plenty of time to act like you are
multi-tasking
without really having to do anything of the sort. How twisted does your mind have to be to even consider
a world where a 14 year old would have MTV
playing on their television monitor and be simultaneously emotionally invested in some aspect of
mtv.com? It is beyond the bounds of sanity to think
that one brand, no matter who they are, could enjoy such a stranglehold on this very fickle, cool hunting
demographic -- but it is surely fun to think
about.
According to Mika Salmi, Digital President of MTV Networks, "People tend to find content on the Internet
through thousands of front doors as opposed
to one … in some ways we're in a better position than most media companies are -- we're where people
want to be." This is all well and good. But let
us not forget that MTV enjoys revenue from licensing fees as well as advertiser sales. And, with very few
exceptions, neither of those revenue streams
has proven meaningful (at scale) in the world of online video.
Am I being too harsh, too old-fashioned, too "this is the way it has always been done," too 20th Century?
You could read it that way. But you'd be
missing the point. MTV is a cable/satellite network with a virtual monopoly on its demographic. Because it
had achieved a certain size (call it critical
mass), no other demographically similar music television network could hope to achieve the same scale.
This is true today as it was then.
MySpace and YouTube have the high ground here. Neither company was designed, they both evolved to
scale. To think about it another way, what
would it take to unseat Google today? Could you build a substantially better product and promote it hard
enough to win?
We can all learn some valuable lessons from Mika and MTV's approach to these issues in the coming
months. Assuming that they can execute what they
have articulated, their success or, lack thereof, will tell us a great deal about consumer permissions, the
power of the MTV brand and the nature
of media consumption for digital natives
April 9, 2009
Last fortnight, the hundred-plus employees of MTV, the music channel from Viacom 18 (a 50:50 venture
between Viacom Inc and Network 18), cut a 15 kg
cake at their funky office at Parel in Mumbai. The occasion, as MTV's general manager and senior vice-
president (creative and content), Ashish Patil,
explains, was the channel's highest ever viewership in India.
So much so, the channel dared to compare its gross rating points (GRPs, the weekly total of the television
rating points which is viewership into
time spent) to general entertainment channels such as NDTV Imagine and Sab TV.
In the last three weeks, MTV's GRPs have risen from 79 to 81 to 83. In the final week, 5 million people
tuned into the channel.
Its two reality shows, Roadies and Splitsvilla, are ramping up viewership numbers at a fast clip. Roadies
has clocked a rating of 3.5 and above,
while Splitsvilla touched 1.71 this week -- spectacular for shows on a music channel. Popular soap
operas like Balika Vadhu and Bidaai notch ratings
of eight to 10.
The performance is a show-stopper even if MTV India chooses its base audience carefully to arrive at
these numbers. The channel looks at a narrow
market -- 15- to 24-year-olds in the socio-economic categories A and B in Hindi-speaking markets with a
population of 100,000 and more -- to flaunt
its impressive numbers. (For the record, TAM Media's MTV GRP for cable and satellite homes in the
Hindi markets, 15-year-plus viewers in all SECs
was 33 for the period between March 15 and 21.)
Introduction
Pedagogical Objective:
To discuss the strategies adopted by MTV India to differentiate and position itself firmly as the
No.1 music channel in India.
Keywords : Positioning; Branding; MTV (Music Television) India; Strategy; Indian television
industry; STAR (Satellite Television Asian Region)
network; Marketing Strategies Case Study; Media companies in India; Music channels in India;
Product life cycle; Communicating the product position;
Young consumers, Marketing Management; Marketing Mix; Market Segmentation; Product Life
Cycle; New Product Development; Consumer Behavior; Marketing
Case Studies; MBA; Marketing Course for MBA Marketing Course Case Map; Course Case Map;
Case Map
MTV International (MTVI) was the first major international television network to broadcast its
channels in regional languages around the world.
MTVI was first launched in Europe in 1987, and later expanded to many countries. In the 1990s
the network realized the importance of a 'region-centric'
approach, and launched localized versions of its channels in regional languages.
As of mid-2006, MTVI reached an audience of over one billion, and operated around 130 channels
in more than 25 languages. In addition to the television
channels, the network operated broadband services and about 130 websites. MTVI adopted the
policy of "Think Globally, Act Locally".
The network not only launched localized versions of its channels, but also acquired several local
channels in the countries in which it operated.
This case discusses the localization strategies adopted by MTVI to expand globally. It also talks
about the shift in MTV's target audience's preferences
from television to online media. It concludes with a discussion on whether MTV can reinvent itself
to maintain its relevance to the youth audience, and
how the company can meet the challenges posed by emerging media.
» To analyze the localization strategies adopted by a major media company, in its global
expansion
» To study the impact of language and culture on a media company's global expansion
» To analyze the impact of emerging media like the Internet on traditional media
Contents: Page No.
MTV Networks - Globetrotting 1
Background 2
MTV Network's International Expansion 3
MTV Networks Asia-Pacific 5
Other Localization Moves 8
Outlook 9
Exhibits 10
Keywords:MTV Networks, MTV International , Viacom Inc. , Music channels, Region-centric
approach, Television programming, Localization strategy, VH1,
International expansion, "Think global Act local", Online video sharing, Globalization, Channel
[V], Youth brands, Nickelodeon
Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.
On August 18, 2006, MTV Networks International (MTVI) launched a 24-hour music channel called MTV
New Zealand at an event held at Aotea Square in Auckland,
New Zealand. The event also marked the re-launch of Nickelodeon3 in a localized format in New
Zealand. Both the channels were to be available on Sky
Television.4 The localized MTV New Zealand channel (which was expected to reach an estimated
650,000 homes) was to be a platform for musicians
from the country to showcase their talent.5
MTVI, launched in 1987 in Europe, was the international arm of MTV Networks (MTVN), the largest media
network in the world.
MTVI, which included MTVN's core channel MTV and its sister channels outside the US, was growing at a
rate of 20% annually, as of mid-2006. It was
also the first international television network to broadcast channels in local languages with localized
content in various countries around the world.6
In the 1990s, MTVI realized that to be successful globally, it had to adopt a 'region-centric' approach.
Therefore, the network began operating
localized versions of its channels in addition to acquiring local channels in many regions.
As of mid-2006, MTVI catered to an audience of more than one billion, and had a presence in 179
countries across Europe, Asia, Latin America, and
Australia.7 Apart from its flagship channel MTV, it had a number of other channels in its portfolio. The
network operated around 130 channels in more
than 25 languages worldwide. In addition, it operated some broadband services and more than 130
websites.8
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