Are DVDs Going, Gone, Gone?

Today's Guardian reports that the DVD industry is in crisis as sales of disks slump while consumers turn to on-demand viewing and downloads to networked devices such as iPads, iPods, video game consoles and other gadgets.

Just a few years ago, the DVD industry was extremely worried about piracy. Yet much of the download/on-demand entertainment viewing is paid, not free or pirated.

Despite the downward trend in sales, DVD rental sites such as LoveFilm and Tesco DVD Rental continue to attract customers in part because of the flexibility of delivery they offer. And stand-alone rental kiosks have some appeal, capturing impulse customers who want to take a DVD home for the day.

In the US, Netflix (see above) is a major market leader that has transformed the DVD rental industry and is using pricing to encourage online viewing rather than by-mail rentals. Recently it raised its by-mail subscription prices and introduced a budget-priced instant-viewing subscription option that will help the firm cut postal and delivery costs.

However, the outlook for DVD sales isn't entirely bleak. Videogames are a bright spot. All in all, reports of the DVD's demise are premature.

Black Friday update

Here it is, midway through Amazon's self-declared Black Friday week in the UK, and the promotion is getting mixed reviews. Frustrated shoppers who weren't able to grab the most deeply-discounted deals are complaining to the Advertising Standards Authority about the limited amounts of merchandise available for brief periods.

Still, the possibility of buying a hit videogame or cutting-edge TV at a rock-bottom price is so attractive that Amazon's site and its Facebook page are attracting lots and lots of shoppers this week.

Will Black Friday be a plus or a minus for Amazon, after the week is over?

Will UK shoppers shop like it's Black Friday?

In the US, the holiday shopping season goes into high gear on the Friday after Thanksgiving (this year, that's Friday, 26 November). It's called Black Friday because (so one story goes) that's the day when retailers' balance sheets swing into the "black"--meaning they become profitable. Some malls and retailers are opening just after midnight on that Friday to let shoppers start their bargain-hunting early. This unusual timing also grabs media attention and gets buyers excited about being among the first to grab popular deeply-discounted items.

Now some retailers are trying to bring Black Friday mania to UK shoppers. Amazon UK, for example, has special bargains starting Monday (see image above). As my earlier posts have noted, UK retailers have already begun their Christmas promotions, with special pages and sometimes free shipping to encourage early shopping.

Will UK shoppers embrace Black Friday deals and shift their shopping to those retailers that offer special discounts next week? Remember, by cutting prices, retailers are cutting margins, so they'll have to sell more to keep up profitability. Will Black Friday bargains help retailers improve the top line (sales) as well as the bottom line (profits)? We'll soon see!

Marketing the Big March

Beatbullying.com hosted the Big March today, with more than 700,000 avatars "marching" across the Web site and MTV screen to call attention to the important anti-bullying message.



The "march" started at 8 am and ended at 7 pm with videos and messages available on the Web, Twitter, Facebook and YouTube all day long. This is the start of Anti-Bullying Week and a virtual event is quite a smart marketing approach to getting young people involved in the movement and building awareness of the theme.

Communicating the dangers of smoking

As the New York Times reports, cigarette marketers are seeking profits by concentrating on countries where tobacco marketing is not as highly regulated as in the UK, Europe and the US. In the UK, Action on Smoking and Health is only one group helping to combat smoking.

The World Health Organisation's ongoing battle against tobacco marketing (see image above) is gaining momentum in some areas. Even in Russia, where smoking has traditionally been quite popular, large, specific health warnings on cigarette packaging have been adopted to remind smokers of the health consequences.

For a global gallery of anti-smoking health warnings, click here.

What's ahead for Bebo?

Bebo.com was incredibly popular, especially outside the US, when AOL paid $850 million in 2008 to acquire it. However, AOL didn't invest heavily enough in new features even though competitors like Facebook were aggressively expanding and adding enhanced services month after month. Facebook roared ahead in user numbers and media coverage.

AOL sold Bebo earlier this year (for a paltry $10 million) and now the new CEO insists that the site is "here to stay, and grow." He points to a recent increase in membership (bringing total users to 117 million worldwide) and notes that the personalisation features will help Bebo attract and retain users; he sees MySpace as eventually fading away.

Bebo recently introduced a new instant messaging service and says it has even become profitable. Meanwhile, MySpace is redesigning its site to hold onto users, and Facebook continues to innovate, even as its privacy policies and control of personal data draw attention and, at times, controversy.

What's ahead for Bebo, and how will it affect competition among social media in the coming years?

[Updating coverage of social media marketing in Chapter 9 of Essential Guide to Marketing Planning 2d edition]

Google marketing ideas

Multinational marketers strive to leverage their marketing investments in all locations, yet deliver marketing that is customised (at least in part) for local customers or users.

Google has an interesting way of approaching this issue. Its reach is global, yet it adjusts some aspects of its marketing for local users. For example, on most days, its Google Doodle (the logo shown when users go to the main home page to conduct a search) is the same worldwide. On other days, however, it designs Google Doodles for users who log in from particular countries. These one-day Doodles may celebrate a local holiday or a notable achievement. For a summary of Google Doodles that appeared during a particular period, click here.

Google's marketing also appeals to brand fans who want to buy T-shirts, blankets and other merchandise bearing the Google or YouTube brand at the Google Store. Depending on your location, prices will be shown in pounds, dollars or other currencies.

To build community, Google invites fans to submit their own logos. These unofficial logos express the enthusiasm and talent of Google's users worldwide. Although Google is clearly a giant company, its marketing helps users feel that the company understands local differences all over the world.

Social media's value to e-tailers

According to Hitwise, online retailers are receiving more traffic from social media this year than last year. Although Hitwise's report indicates that entertainment products top the list of retail categories receiving visits from social media users, apparel is #3.

That's why French Connection has opened an online store within YouTube, so viewers can click and buy without leaving the video site. Take a look at the "Youtique" here. The online store describes itself this way: "Look amazing for any occasion with the world's first personal shopping experience on YouTube, hosted by top stylist Louise Roe. Are you ready to get gorgeous?"

 The e-tailer already has more than 160,000 "like" votes on Facebook and an active Twitter presence, with almost 4,600 followers.

French Connection is also involved with mobile marketing, inviting consumers to get text message updates by subscription.

The bottom line for French Connection is: Social media drives online traffic and sales.

Retailers ready for Christmas

Now that Halloween is over, all the major retailers are getting ready for the all-important yearend selling season with all kinds of holiday campaigns and product ranges online.

• Marks & Spencer, for example, has created a microsite for Christmas shoppers that includes a gift finder, party planner, and 'size detective' (that e-mails gift recipients to check on sizes).
• Tesco has its own Christmas pages, complete with wine by the case and special credit offers to 'spread the cost of Christmas' with 0% interest for 13 months.
• Selfridges has a Christmas site that features gift ideas for him, her and kids, plus decorations, foods and traditional hampers.
• Harrods offers 29 Christmas hampers on its special holiday pages, plus links to the holiday toy catalogue and more.
• Harvey Nichols is also featuring Christmas hampers, 30 that include either Coca-Cola or other brands.
• John Lewis has a set of Christmas Web pages selling seasonal decorations and home goods, gifts (segmented 8 ways by gender/age/family relation) and other holiday offerings.

Later in the month I'll look more closely at holiday marketing by UK retailers. Let the shopping begin!