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Wednesday, June 30, 2010

Media Process Outsourcing

There has been a noticeable change in the field of entertainment media. Improved connectivity coupled with the availability of high-speed Internet access has formed a business strategy that has sparked off publisher’s interest. Increased broad brand penetration is serving as a gateway to effective content delivery. There is a continuing movement from the existing analog service towards Digital TV, IPTV, Digital terrestrial television (DTT) etc.



Are we heading for an evolution in entertainment media?


It seems so; at present with the host of value added services such as on demand entertainment, online gaming the broadcasters are armed with a wealth of content availability. This evolution snowballed into content management area with the advent of efficient media asset management systems. Now broadcasters like BBC, CNN etc attain greater efficiencies by eliminating multiple copies of unnecessary content assets. These developments lend themselves to a viable outsourcing opportunity.


The other area of attraction for media outsourcing lies in digital program insertion (DPI) and addressable advertising. DPI enables broadcasters to push forward relevant advertising based on user demographics and behavioral patterns. To cater this new demand of behavioral targeting broadcasters need to bank upon the capability of media outsourcing companies. It seems to be a time where more action is just waiting to happen in entertainment media.


Is Media outsourcing a serious business to care about or just another buzz?


A few examples of understated plays from technology companies seems to be very interesting.. Microsoft leading the way through inorganic route has acquired Israel start up company YaData to exclusively focus on behavioral targeting. In fact through successive strategic implementation Microsoft has made significant in roads to advanced analytics for the online media. It has sophisticated methods like Engagement mapping to manage and measure online ad campaigns. Apple on the other hand has launched Final Cut server to place itself firmly in media asset management.


Beyond technology companies the traditional media agencies like WPP, Publicis group etc. are leaving no stone unturned in their quest to unlock maximum value. WPP has set up an offshore production arm on a shared basis to build web assets at a lower cost for their global ad network. The new arm named as WPP Deliver will operate across Asia, Eastern Europe, Latin America and South Africa respectively. In similar lines Publicis group has set up Prodigious worldwide. To cut the long story short we can safely infer from the actions of these big boys that Media outsourcing is indeed a serious business.


The (ever) growing world of SMO and SEO…


Social media outsourcing (SMO) is currently catching up in trend with more and more companies showing inclination towards getting it outsourced. The various outsourcing avenues being actively looked upon in of this area are;


• Content
• Site Building
• Social Bookmarking & Networking
• RSS Feeds and Videos


Search Engine Optimization (SEO) is a way of increasing page rank of the particular website in the organic search results. Various companies in Asia offer this service and they claim to save around 35% of the present cost compared to what the companies doing it on their own.


BPO, KPO – Is it now time for Media Process Outsourcing?


Some of the major advertisers already set the ball rolling in the outsourcing space. The story begins from India with the decision of Lenovo to outsource its entire global advertising portfolio to O&M a WPP group company. Named as Lenovo hub O&M will handle Account planning, servicing and creative work from its Bangalore branch. The other big brands actively trying to integrate and outsource their ad accounts are Visa, Dell, Lenovo, HP and many more to follow.


Hewlett-Packard is actively considering the agency consolidation process for all its advertising, direct marketing, search-engine marketing and interactive campaign needs. Dell entangled in traditional agency relationship has decided to consolidate and create one multi disciplinary agency named Da Vinci in association with WPP. It has also decided to co invest $4.5bn towards the development of advanced analytics tool. As per adweek Visa is looking at its current global agency partnership model with a dozen of companies. They want to consolidate it to an one stop shop which will ensure a better creative synergy combined with cost efficiency.


Looking at these recent happenings in the world of media certainly we can not remain a silent spectator any more.

Keep posting any new details in my comments and do provide feedback @ duvvurusandeep@gmail.com

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