"Creative" Accounts for 52% of Ad Success, Says comScore

To the extent that the aim of an ad campaign is to stimulate additional sales, advertisers need to pay more attention to the quality of the creative, comScore says.

"The quality of the creative is four times more important than the characteristics of the media plan in generating sales,” said Jeff Cox, executive vice president of comScore ARS. “In fact, creative is the single most important factor and accounts for over half the changes in a brand’s sales over time.

Getting the creative right is absolutely essential, and yet its importance so often gets minimized in the process of developing an ad campaign. Now is the time for advertisers using digital, as well as more traditional media, to get serious about optimizing their creative on the front end so they don’t get a rude awakening when the ads don’t work and they are left wondering what went wrong.

In other words, a good plan and a good channel are helpful, but more than half of any new sales generation will hinge on whether the advertising succeeds in motivating behavior. That's more art than science, but it would appear too many advertisers neglect the art part.

comScore ARS Research Highlights Importance of Advertising Creative in Building Brand Sales

Moms and Millennials

The millennial generation is in one sense not a "market segment," but rather an indication of where all future markets are headed. As you might guess, behaviors of Generation X, sandwiched between Boomers and Millennials, have some characteristics of both preceding and succeeding generations, though it is the differences that normally get the attention.

In a more immediate sense, Millennial behavior is important because it influences the behaqvior or older age cohorts, thus driving behavior now, and not simply in the future.

Moms and Millennials

eMarketer Webinar: Tips for Reaching & Engaging the Elusive Millennial

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Millennials are in one sense not a "market segment," but rather an indication of where all future markets are headed. As you might guess, behaviors of Generation X, sandwiched between Boomers and Millennials, have some characteristics of both preceding and succeeding generations, though it is the differences that normally get the attention.

In a more immediate sense, Millennial behavior is important because it influences the behaqvior or older age cohorts, thus driving behavior now, and not simply in the future.

Steve Jobs: “Open Systems Don’t Always Win”

Steve Jobs, Apple CEO, is unapologetic about Apple’s "closed" or "curated" approach, which is to tightly control how everything integrates from the chips to the software to the industrial design.

“Open versus closed is a smokescreen,” he argues. “Google likes to characterize Android as open and iOS as closed. We think this is disingenuous,” says Jobs.

The real difference between the iPhone and Android is, he says, “integrated versus fragmented."

There is some merit to that re-framing of the argument, though some will consider it a sophisticated bit of semantic gymnastics. Up to this point, Apple has been the salient exception to the "rule" that open approaches lead to more, and faster innovation.

But that is starting to change in the media business and with the rise of applications and closed user communities on the Internet. These days, in the content business, the options are "open," "closed" and "curated," which is another way of saying "fragmented," "integrated" or "annotated."

Steve Jobs: “Open Systems Don’t Always Win”:

Steve Jobs Predictably Disses 7-Inch Tablets

Perhaps predictably, Apple CEO Steve Jobs doesn't think much of tablets with a seven-inch screen, such as the Samsung Galaxy or Research in Motion Playbook.

“Given that tablet users will have a smartphone in their pocket, there’s no point in giving up screen size," Jobs says. "Seven inch tablets are tweeners — too big to be a phone, and too small to compete with the iPad.”

Some of us don't agree. For many users, who cannot work without a notebook and a smartphone, and who travel frequently, an iPad is one more device to lug around in a backpack or briefcase. Some of us now routinely travel with a videocamera, two smartphones and a notebook, possibly another device (iPod or DVD player) "standard issue."

That means lots of AC adapters and cables, plus the actual devices.

To the extent that a tablet is a content consumption device, not so good as a content creation device, there might be form factor and weight issues that could tip the buying decision in the direction of a smaller tablet.

Apple CEO Steve Jobs rips into tablet competitors:

The Dot Mob Era

Some say a "Dot Mob" era is coming, and coming fast.

Similar to the "Dot Com" era, it is going to be a time of incredible mobile advertising growth.

Unlike the internet advertising era that took time to develop mainly because the infrastructure of the internet was so immature at the time, that will not be the case with mobile advertising, some might argue.

Google broke out its mobile advertising as a unique line item and says it is a $1 billion a year business, perhaps on the way to being a $10 billion business at some point not too distant.

Apple and the Dot Mob Era

Mobile Price Study: Only As Good As its Assumptions

Predictably, people are pointing to a new study on mobile pricing, published by the New America Foundation, as proof that U.S. mobile prices are too high.

The United States tends to fall in a band of countries that charge higher prices to individual wireless consumers for everything except pure voice service where prices are comparable, a study by the New America Foundation finds. read the full study here.

But a study is only as good as its assumptions. Taking a look at single-user plans, the foundation finds that "across postpaid and prepaid voice plans, Canada, U.S., U.K., and Japan mostly fall in the high to middle price tiers while India, Hong Kong and Sweden fall in the low price tier."

The United States is in the highest price tier in the postpaid and prepaid text plans sharing space with U.K., Canada and Denmark while Sweden, India and Japan fall in the lowest price tier, the foundation says.

Finally, Japan, Hong Kong, U.S. and Canada feature in the high to medium price tiers while India, Sweden, and U.K. emerge as winners in the low price tier, the New America Foundation says.

In Canada and U.S., consumers have the highest minimum monthly charge for a complete postpaid cell phone service at $67.50 and $59.99 respectively, the New America Foundation says. Other countries that follow a similar cost structure at lower rates are U.K. at $32.40, Denmark at $39.00, and Finland at $40.10.

So here's the problem: In the United States, in 2006, fully 54 percent of adult mobile users subscribe through a family plan, according to the Yankee Group. That was up from the percentage of users on family plans in 2005, when 49 percent of adult subscribers were on a family plan.

Eighty-one percent of all mobile-using teens were on a family plan in mid-2006, up from 75 percent in 2004, the Yankee Group found.

A reasonable estimate might be that 60 percent to 70 percent of U.S. users are now on family plans. That is important when comparing costs and plans across regions and countries of the world because the New America Foundation study compares individual plans, not family plans.

That isn't to say the New America Foundation study is "wrong." But it compares plans that most U.S. users are not buying.

The plans selected for study are important. Some are pointing to an earlier study by the Organization for Economic Cooperation and Development as well.

The Organization for Economic Cooperation and Development, for example, suggests that U.S. mobile prices are "high," based on a standard set of usage buckets, mirroring the New American Foundation study.

But there's a problem. Most U.S. users talk about four times as much as some Europeans do.

The problem is that the OECD study uses definitions of "low," "medium" and "high" use that might describe usage in the Netherlands, but are wildly inapplicable to typical U.S. usage rates, says George Ford, Chief Economist of the Phoenix Center for Advanced Legal and Economic Public Policy Studies.

Specifically, the OECD analysis calls 44 outbound minutes a month "low," 114 outbound minutes medium and 246 minutes outbound "high" levels of usage.

The average mobile consumer in the United States uses 800 minutes a month, about four times as high as the OECD "high usage" level. Furthermore, the OECD considers 55 text messages a month to be "high use" where the typical U.S. mobile user sends or receives 400 text messages a month.

Since usage plans are directly related to usage, this is an issue that distorts the comparisons, difficult to make under the best of conditions. By definition, the "average" U.S. user is a "high usage" customer. So if U.S. users kept the same behavior patterns, but had to buy plans as the OECD baskets suggest, they would have to pay rates commensurate with very-high usage levels.

In other words, if users in a given country have low usage, and are on low usage plans, then average prices paid will tend to be "lower." In the United States, usage is vastly higher than in Europe.

Normalizing for usage volume, what one finds is that U.S. users pay modest prices for much-higher use. If users in the Netherlands had consumption patterns identical to U.S. mobile users, they would pay very-high prices.

In other words, one cannot simply compare low-usage plans in one country with high-usage plans in another, any more than one can compare low-usage plans in one country with high-usage plans in the same country. Nor can one compared plans that most users do not buy, and produce results that are terribly meaningful.

Who has the most expensive phone bills? North Americans!: