The new must have content

Editor's Notes

• #2: Hi. My name is Michael Hong. I am a director of marketing communications for LG Electronics. But before I start, could you please raise your hand if you have heard of LG for the first time through this conference? Thank you.
• #3: Just for your reference, LG Electronics is a $43 billion global leader in consumer electronics, home appliances and mobile communications. I have been with LG Electronics for little over two years and I am responsible for Brand Marketing and Marketing Communications for North America region. I am honor to be at Internet Retailer 2007 and share my thoughts Online Video Content.
• #4: Two business men traveled to Africa. In the jungle, they met a lion. While one of travelers thinking what he should do, the other traveler carefully pulls out a pair of sneakers out of backpack and putting them on his feet. So the man asked, “Do you think you can out run the lion? The other man shouted as he started running. No, I just want to out run you!
• #5: In today’s competitive environment, out running competitors is not an easy task. Charles Darwin said that it is not the strongest or the healthiest will survive but it will be the one that can adapt to change. Internet technology is constantly evolving and challenges our cultures to adapt new ways of living.
• #6: As digital age brings speed to everything we do, we are experiencing cultural conversions and diversions manifesting at the same time. Hollywood movies are being viewed every corners of the world spreading American culture. At the very same time, millions of micro communities popping up creating unique culture only to them selves. The digital age is now reshaping our cultures creating new breed of people. Alvin Toffler, author of Future Shock, The third wave and Revolutionary wealth identified this new breed of people as “prosumer.” These are the people who produce and consumes at the same time. This new breed of people are now commanding the new digital age and we’ll discuss who these people are, how video plays important part of this changing world and why digital marketers should consider using video as a part of communication mix.
• #7: . The killer App of the internet was utility; being able to access basic information 24 by 7 and convenience to task oriented activities such as online banking etc. Today, internet is becoming a social, personal extension of oneself, as people use it more to connect with friends and family and find new communities around their specific interest and passions. This new consumer behavior has transform the internet into excellent branding vehicle for establishing emotional connection with consumer. Eventually, internet will play an increasing role in social advocacy by igniting participation and expression among the global collective.
• #8: Video is one of the modern wonders of media technology. The invention of motion picture and television forever changed our culture and history of modern history. In 1931, the Radio Corporation of America (RCA) broadcast experimental signals from the Empire State Building, featuring a familiar cartoon character, Felix the Cat . The first TV star was born. Video, coupling with audio transmission technology, is the most powerful way of simulating real experience without being at the point of event. In 1969, when TV broadcasted Apollo 11, a man landing on the moon wasn’t the only remarkable achievement in human history. The fact that millions of people around the world witnessing a historical moment through eye’s of television in itself was another remarkable milestone for human kind. Video has become one of the most powerful media as it connects people around the world emotionally and intellectually.
• #9: To better understand the video, one must understand the context of media evolution. Invention of new and better media not only allowed human kinds to communicate with people of a far away but it also allow people to send message to the future generation. From snail mail to email and radio wave to digital broadcasting technology, we have revolutionized the speed of delivering contents. (By the way, LG Electronics is proud owner of digital broadcast technology that will soon replace analog broadcasting technology in the US.) Internet is now emerged as multi-media platform, creating unprecedented network of human chain. Internet is not only capable to distribute content in mass but it also allow one-on-one communication possible.
• #10: Today, speed of internet has changed just about every thing in ways which we communicate. As bandwidth continues to increase, video and audio content that once was limited to TV and Radio media is now flourishing in internet as major media. By 2010, 86% of US house holds with internet will be wired with high-speed internet access. As such, role of video content is being reevaluated as important integral part of communications mix for marketers.
• #11: Traditional text driven contents are thing of the past. Speed of internet is now driving new contents that we only dream of. The benefit of high-speed is huge for consumers as well as for the marketers.
• #12: Faster the speed of internet, longer the time spend on internet. On average, broadband user reads two times more pages than the dial-up users. Did I just say users read content? Today, internet users don’t just read content but also watch and listen.
• #13: Broadband users spends 30% of their time online and 27% on TV.
• #15: The post broadband is now reshaping our behavior in this ever-changing virtual world. Communications is becoming socialization. Task focused activities are transforming to life management. These transformation is now making a huge impact in our culture both online and off-line.
• #16: People are transforming. 3D virtual community is becoming one the fastest growing online activities for the high speed internet users. These virtual communities helps people to bring out hidden talents and creativities that otherwise never expressed in the real world. Character play communities provide an opportunity to for people to become someone they could only dream. Introvert are now extravert, male can pretend to be female so and so forth. It’s interesting to note that marketers are creating a new economic within these virtual communities. Virtual products are being sold as if it really exist. While broadband penetration increased significantly in the US, it will be awhile before we enjoy true high speed internet access that are currently available in countries such as Korea.
• #17: In the mid-1980s, a popular Japanese television show invited viewers to send their homemade video where the hosts would play them and, of course, gleefully ridicule them. Vin Di Bona, an American television producer, like this concept and purchase the right to repackage for American television audience. On January 14, 1990, America’s Funniest Home Videos was broadcasted in ABC TV. Within three months, it was the number-one ranked television series in America. AFHT is still on ABC and made it the third-longest running primetime show for the network after 20/20 and primetime. Today, AFHV is challenged by video sharing sites. So who are behind the video sharing sites? “prosumers” the new breed of people who produces their own entertainment and entertain them self at the same time. They are in the forefront of influencing many to follow. The new generation, not only capable to intake insurmountable of information than the pre-broadband generation, loves to share and express freely of their opinions. Also, they are not afraid to use new media such as video cam or digital cam as technology is made easy for everyday usage. Some marketers refer ‘prosumers’ as ‘Generation C’ where C stand for content or Citizen marketer. What ever the name might be, as marketer, we can not ignore these emergence of new culture and generation.
• #21: User created content has created is beginning to compete with professionally produced content.
• #29: The explosive growth of You Tube and other similar sites are evident that Generation C is becoming a new segment that marketers can not ignore anymore. Generation C is becoming a powerful brand influential segment. They are the message as their “word-of-mouth” is becoming the most influential form of media. Today, marketer must not only address what to communicate but must be capable to understand what consumer says about your brand. Undeniably, we have now entered an era of ‘Seller Beware’ (Add some sample video content)
• #33: Online Video ads are 2 to 3 times more effective over traditional banner ads. If your goal is to drive traffic to your website while building your brand, the cost of running 30 second ad on internet space maybe a lesser expensive solution than on-air TV ad. If your goal is to build awareness to un-segmented wide audience, I would think the TV maybe a better solution.
• #34: Today, video content is virtually ubiquitous in online space.
• #41: Most leading ad executives expect a significant portion of broadcast and cable TV ad dollars to shift to online video by 2010. As video content provider continues to increase in online space, the difference between TV and Internet will be minimized. In fact, if one consider internet is one stop solution for all media platform, stand alone TV has no room to survive in the future.
• #44: Convergence of Voice, Video, broadband and wireless service will eventually offer new form of communication and entertainment platform to marketers. Some people call this home networking but whatever it may be it will be based on socialization to meet un met needs to being who we are, human.