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Overview
- a. What it is, how it works.
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Integrated Media Measurement Inc. (IMMI) developed a method for measuring media effectiveness. This is the next generation of “Nielsen” boxes.
The Nielsen Television rating system enabled Networks or Firms to see how many people were watching a specific program or advertisement in their homes.
American’s now are getting much exposed to advertisements and television programs in many other places than in their home, in front of the television, at the original airing of the program.
Many people are now watching programs online or “on-demand” (TIVO, DVR). Nielsen devices are not suited for those things. Also, the old systems could not measure media exposure outside of the home, radio ads, etc.
IMMI has overcome these roadblocks with passive audio-capturing software built into a provided cell-phone.
People from a random sample are given a cell phone to use as they would a normal cell-phone, except that every 10 out of 30 seconds that the cell phone is on is recorded and then sent to the IMMI servers. This captured audio is then analyzed to determine what program, advertisement, radio show, movie, play, or sporting event they are at.
Using this data, IMMI can calculate more accurate statistics of program viewership or advertising effectiveness.
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- b. Standards (competing standards)
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There are no real standards for this technology. IMMI does follow some standards, as far as TCP/IP data communication, a secure data-storage facility that likely uses some standard (they aren’t too keen on publicizing that though).
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- c. Level of commercialization/development
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IMMI’s technology is currently in use in America gathering statistics for firms. Firms are now learning how effective certain advertisements are, what television ads/shows make people change the channel, what songs on the radio make people change the channel.
The Simpson’s Movie, for example, used IMMI’s technology to determine that people who saw Burger King ad’s linked with The Simpson’s movie were 40% more likely to see the movie. They can do that by creating a timeline of when people saw a Burger King/Simpson’s Movie advertisement and when they saw the movie, all by having IMMI’s cell phone “listen in”.
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- d. Internet Interoperates
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After IMMI’s software converts the 10 second sample of audio into a digital signature it uploads it to IMMI’s servers. It does it on a continuous basis, not as a batch process. For proprietary reasons, IMMI does not discuss how they transmit their data back to the IMMI servers but it is most likely just a TCP/IP connection to their servers.
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- e. Key Domains
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The main domain has already been established, media measurement. As more firms discover this technology, they will likely develop more precise and innovative ways to link usage and effectiveness within their sample.
The same technology could be used though to keep tabs on people. Maybe parents keeping an eye on their kids (what they are watching, listening to).
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- f. Technical Challenges
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Some of the technical issues surround this new technology are what device to use for the collection of data and the medium on which to transmit the data back to the home office. The first version of this technology uses modified cell phones to record the data and cellular networks data transmission capabilities to transmit the data back to data repository. Future version of the software could include public cameras to record visual advertisements, but would require a backbone with a larger bandwidth capability than the current cellphone network.
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The issue concerning privacy and this new technology is a very big one. The average consumer is worried that their conversations are being recored by these devices and being listened to by member of the IMMI staff. But according to the IMMI website and an article in the Wall Street Journal, the cellphone records sounds in a PASSIVE mode, meaning that when the phone is in use, the recording device is not allowed to operate. The article from the Wall Street Journal summarizes the process,
“Those snippets -- taken every 30 seconds and altered mathematically so any conversation is made unintelligible -- are transmitted continuously to IMMI.”
Concerning conversation that is picked up when the phone is passive, the data is sent directly to the analysis repository where only keywords are screened, not whole conversations.
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- f. Business Challenges
IMMI is a relatively new technology, but it does have two main companies competing it it's field. IMMI is the first company while the second is The Media Audit. IMMI's approach to the IMMI filed is to compare the sample data to a collection of pre-recorded data and look for matches. Media Audit does not believe that this a valid form of verification. They use a “watermark” in their clients products they are listening for. This has been the choice for Clear Channel Communications and their use of the service. The downside of this “watermark” is that it can not be inserted into a media that has already been recorded, such as a CD or DVD.
The main competitor to the IMMI process would be the Nielson group who have been the dominate media measurement service for a long time. Nielson is responsible for nearly all of the television marketing research reports every year. IMMI is in direct competition with the way they do their collection because the IMMI method covers all forms of media, including television. The solution to this problem, was for Nielson and IMMI to work together.
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- Competitive viability assessment
- a. Complementary technologies that are necessary
- b. Bargaining power asymmetry/market structure
- c. Potential entrants/entry barriers in the envisioned market space
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It would be very difficult for a company to compete with IMMI head on because they are now established in the marketplace.
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The companies already competing with IMMI could possibly combine to be one company, but they still couldn’t get the same demographic results because they aren’t individualized results.
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- d. Threat of substitute products/technologies
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If another company could possibly come up with a way to focus the recordings so it would record only when the consumer is listening or watching media, possibly consumers would see this as less invasive.
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IMMI targets consumers from the ages of 15-53. A new entrant maybe able to target clients that want the same kind of data for an older age range.
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A competitor could possibly integrate video in some way to capture visual advertisement. We see advertisements online, on campus, in the newspaper, and on billboards. Even if you’re watching T.V. it could be on mute, but you’re still seeing an advertisement for the product. These are all forms of advertising that are currently being seen by consumers but not weighed by IMMI.
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- Adoption
- a. Status
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It is already starting to be adopted. Nielsen and IMMI are cooperating beginning in September 2007 on a project to determine television viewing outside of the home. We believe that this will help IMMI tremendously. Nielsen isn’t on the cutting edge of technology, but they are a trusted name. The association with Nielsen should help IMMI gain rapport with potential clients. |
- b. Locations
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Currently have panels in 6 major cities: New York, Chicago, Los Angeles, Miami, Houston, and Denver
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- c. Growth
- d. Real Options
Social Tracking- Instead of planting a GPS locator on a person, a voice sample could be used to locate a person based on the GPS location of the device, very appealing to the National Security Industry. Parents could keep track of kids, Missing people could be located.
Future Marketing Research- Studies could be done based which keywords or idea held interest the longest after a consumer heard/saw the advertisement.
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- Critical Success factors
- a. Expansion
- b. Privacy
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Security and confidentiality are very important. If panel members’ conversations are leaked onto the Internet, they may not feel secure having the program on their phone. Without panel members, the service is useless.
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- c. Diversity
- Projections
- IMMI will become the new standard in Marketing Measurement Analysis
- Higher accuracy of results.
- Marketing campaigns based around IMMI reports.
- Ease of use will increase sample sizes easily, plans are to increase the current base of 1500 to 3000.
- Future measurements will use sample and watermarking technology together.
- Video Based Measurement - tying product into public and voluntary private companies security camera to measure the effectiveness of visual marketing (ie. how long somebody stopped to look at an add or watch a commercial on the street).
- Sources
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Fall 2007