The Falling Cost of Video Marketing: Local Implications

Amazon today introduced AWS (Amazon Web Services) Elemental Media Services, a suite of video production and distribution tools that demonstrate, once again, the growing importance of video to local marketing and engagement. Elemental Media Services, like Azure Media Services from Microsoft and others, provide professional grade tools for virtually any organization to use. Enterprise capabilities have percolated down to Main Street, and local engagement has never looked as complex as a result. Video blended with messaging, email, web, app, and bot-enabled UX represents improved branding opportunities for small business and large. 

Bringing that communication engagement smoothly into the transactional experience is challenging. Large brands have tended to produce for national or, at the most granular, regional audiences. Local media, however, requires local stories of success with products/services, as well as a form of influence that is easily shared. Video is ideal for this intimate connection, but it requires locally connected sales and influencer engagement to activate audiences based on personal and local influencer connections. People need to be involved, telling stories that can be promoted locally to establish authentic community bona fides — the notion that the brand is not only successful but that it is successful for people in the consumer’s community. These stories get shared, but they need a platform like Elemental Media Services for successful management and follow-through on sales opportunities. 

Amazon’s dominance in transactions, which accounted for 2016 online sales, ties many sales opportunities to search and fulfillment by the retail giant. Indeed, MediaPost’s Marc Schader wonders if Amazon won’t dominate all marketing because of its growing search marketing influence: “Brands are quickly realizing that if they don’t start taking Amazon’s search capabilities seriously and get in on the “Amazon effect” now, they could find Amazon-owned brands overtaking their own market share.”

Which leads to the question for local retailers and service providers: Where to plug into local video marketing services? AWS and Azure, among others, have attractively priced video services, but Amazon’s comes with implicit and explicit tie-ins to Amazon’s retail search that could turn a local marketing investment into an Amazon marketing benefit — a local retailer’s advertisement could convert into an Amazon sale of the advertised product. This isn’t to say that Amazon video is necessarily a bad choice for local marketers. Instead, the system needs reporting tools that display clearly the transactional outcomes of local campaigns. 

Recent movements among brand marketers to demand transparency in media results are another facet of this issue. Enterprise marketers, such as Unilever and P&G, now want to understand how their marketing spend benefits participants in their own and competitors’ supply chains. A transparent marketing environment will benefit consumers and marketers alike, but the advantage lies with the entity with the transactional opportunity, which is, in many cases, Amazon.

Wag, the ‘Uber for Dog-Walking,’ Is Drawing Uber-Like Scrutiny – Bloomberg

Posting cease and desist warnings in social media is a terrible customer engagement strategy. The bigger problem is the essential home on-demand challenge: Trust. Consumers will provide access to a home or a pet based on personal knowledge, not just ratings. Trust may start with ratings, but it cannot carry the weight of customer security — think about how eBay’s sales have migrated to public venues where, say, a car is transferred, out of fear of robbery. Combined with threats of libel suits against customers still searching for a pet lost by the company, this demonstrates the local trust problem every on-demand company seeking access to the home must address. It requires people referring or vouching for on-demand workers personally.

Wag Labs Inc., the app’s parent company, did something unusual for a tech company: fired off a cease and desist letter to one of its own customers. “If your retraction and apology to Wag! are not publicly posted to each and every social media platform that you have used to libel Wag! within 24 hours of the time of this email, this office has been authorized to use all available means to bring as swift as possible an end to your lies,” company attorney Mark Warren Moody wrote.

Source: Wag, the ‘Uber for Dog-Walking,’ Is Drawing Uber-Like Scrutiny – Bloomberg

Uber, Lifting Financial Veil, Says Sales Growth Outpaces Losses – Bloomberg

Based on these numbers, Uber took an average of 32.5 percent of revenue for each ride. Much more than the 20 percent they tout to drivers.

The ride-hailing giant more than doubled gross bookings in 2016 to $20 billion, according to financial information Uber shared with Bloomberg. Net revenue was $6.5 billion, while adjusted net losses were $2.8 billion, excluding the China business, which it sold last summer.

Source: Uber, Lifting Financial Veil, Says Sales Growth Outpaces Losses – Bloomberg

Google’s Aero takes flight in India: On-demand household services

Google launches Areo, a food delivery & home services app for IndiaGoogle seems to have silently launched a new food delivery and home services aggregator called Areo for the India market. The app is available as a free download on the Google Play store and is currently operational in Bengaluru and Mumbai.

Areo aggregates food dishes and home services across various local service providers, allowing users to order food or schedule appointments with a local beautician, electrician, painter, cleaner and plumber among others. The app was first spotted by The Android Soul.