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Facebook Burns Nielsen constituencies online | Relevance Insight

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Though Nielsen does a pretty good job consistently of late it has been moving most of its “properties” to digital advertising media world and its TV meters already under fire by NDTV in India and has been under pressure for trying to cut costs by moving jobs to India.  However the company’s efforts at providing an efficient analysis and a profitable business along with other digital businesses like Electronic Arts seem to be facing a big decline in popularity as Global Online worlds take a hard relook at the Facebook fracas and Facebook returns to the hobbyists who do not pay and are not interested by advertising. In india 33% of its 52 mln users access Facebook only on mobile, a platform

Meanwhile even as AD Age and WPP fight back with law suits and paywall protected advertising  and marketing  content and/or insights the desire to twitch the switch becomes a question not in the standard US DMAs (unit of contiguous marketing regions, akin to a metropolis)

Facebook’s IPO fallouts have had a beneficial impact on Indian digital habit as well with Private Equity finally waking up to the car and what the horse did to it, taking monies away from future shopping cart projects even as the Amazon model struggles to find relevance in India based on its reworking of relevant local law there using local suppliers and none of its own business except the inevitable investment in IT body shopping for “quality” technology work from India

Nielsen Surveys though wildly unpredictable pinned their hopes on the jumping social media habit to run the latest surveys to revenue monsters in their erstwhile compettitive business trying to beat new w challenges of the digital world.

The reworking of new business models may be more complex than realised as most have had a basic phantom playing behind a titter handle and a Facebook page not distinguishing between a General Motors and the Pizza truck outside your office for brand spend afficionados rushing to buy the next Superbowl ad worth $1 million for every 10 seconds.  Apparently thus Nielsen cannot afford to run off its conventional DMA survey properties and needs to revamp them with continuing investment making its task of maintaining profitability tougher in a post Facebook can’t do it world.

Netflix and Electronic Arts also in the meantime face destruction of value in the markets in the same world easy targets as they cannot spin out extra viewing minutes or gaming successes on the trot and a Linked In trots on in a one pony, no baloney race upon the Digital underground.

Electronic Arts of course has run down costs thru cutting on Distribution and play4 is taking the company ona longer marathon but as myspace and zynga would attest, cost control and quality of offering are both critical and being vailable in the contiguous 48 states may not be enough for their business as they tasted in korea on the FIFA franchise recently. The gaps are showing and the Digital world can hardly be confused with a single DMA for such forfeiters of customer taste and preference as Mar k Zuckerberg and Jeff Bezos have shown consistently to beat instead.


Image representing Electronic Arts as depicted...

Image via CrunchBase

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This entry was posted on September 11, 2012 by in Amitonomics, Banking, Private Equity, Retail Lifestyle, US and tagged , , , , , , , .


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