This week’s interesting reads:
- Some thoughts on pricing (Redeye VC) – First Round Capital’s Josh Kopelman examines pricing strategies. He starts with pricing of soda in a hotel and found a range of $1 to $4.50. The overall range is incredible — you can get the same amount of soda for 35c to $6. Even airfares don’t vary this much on a percentage basis. How do you pick among various choices if the only thing you know is the name of the company and the price? When it involves child care, he goes with the most expensive.
- Ad Houses Will Need to Be More Nimble (WSJ) – The Journal takes a look at the challenges facing ad agencies as clients demand more accountability and integrated campaigns. Agencies have largely been slow to adopt to the rapidly changing media environment and audience fragmentation.
- Looking at Data Through a DVR (WSJ) – The advertising business continues its slow march from relationship-based buying to data-based buying. As DVRs and settop boxes proliferate, they increase the amount of real data advertisers have to work with. Services like Tivo’s StopWatch allow advertisers to get second-by-second response data.
The right way to do TV advertising is to insert commercials dynamically at playback instead of a static recording at the time of transmission. Unfortunately, there are many structural barriers to this happening. This is likely to happen first in Web-based playback and will migrate to the TV.
Advertising has been slow for a while, but as long as there are businesses there will be advertising so companies just need to hang in their. Sites like Adwido are still emerging because they know the power of advertising mediums like video.