CEO • Author • Speaker
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CEO • Author • Speaker
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More Potholes on the I-Way (649 words - Mediaweek - August 22 1994)By Henry Heilbrun If the media world is poised on the verge of an interactive revolution, there was scant evidence to be found at the Interactive Multimedia Forum sponsored by Paul Kagan Associates in New York last week.A parade of industry pundits nearly universally dismissed the notion that America is about to travel merrily along the Information Superhighway, with some predicting the usual pitfalls associated with new technology and others wondering whether it will ever happen. ''Where are the systems that I can install the (advertising) applications on?,'' asked Greg Stuart, vp for interactive marketing at Wunderman Cato Johnson and new technologies committee member of the American Association of Advertising Agencies. ' It's very discouraging to us,'' added Albert Weiss, director of brand advertising and marketing communications for Mercedes-Benz of North America. ''It is very hard to find advertiser support if the infrastructure is not there to deliver it. ' The problem in readying the infrastructure--if there is a problem--is difficult to pin down. Some key players suggest the I- way exists today. Others--with greater ambition for video on demand services through broadband technology to the home TV or PC--point to one or another late component--not their own--as being on the critical impediment. ' I am not a full convert that we have a fully functional Superhighway,'' said Thomas S. Rogers, president of NBC Cable and Business Development, who oversees the network's many multimedia interests. ''Market leadership will be defined over the next few years in the workplace before the home market matures. Consumer behavior will change much, much slower than the technology will be adopted. ' Hewlett-Packard's interactive TV marketing manager Laurie Frick agrees: ''While we're bullish about consumer demand, we're realistic about a gradual adoption.''''Technology is not on the critical path, ' said Philip Corman, corporate manager of interactive video services for Digital Equipment Corp. ''Video servers (for broadband services) will be ready before the telephone and cable companies are ready to deploy.''''Broadband is the end game,'' said Scott Kurnit, executive vp of Prodigy. Prodigy is preparing to add full motion when broadband is available. In the meantime, Kurnit said, ''Set-top is a good place to play today. ''Corman predicted it will be 10 years before there is significant penetration in the home, agreeing with NBC's Rogers that business applications will pay out first before residential. Microsoft's Kevin P. Eagan, group product manager of advanced consumer technology, said its first installations of video servers in 1995 would be in the corporate environment. In other trials, ''we learned that couch potatoes like to punch buttons,'' said Stephen Fleming, associate vp of global marketing for residential broadband services for Northern Telecom. Simplicity is key, he said. ''If you have a cursor on the screen, you're doing something wrong. ' Bell Atlantic, with 11 million homes in the East, created a 15-year business plan for its sophisticated Stargazer broadband delivery of interactive video services, according to Robert L. Townsend, president/video services. He described it as achieving ''real stockholder value within five years'' when the company has reached half the homes in its service area. Advertisers are bullish on the interactive opportunities yet becoming more reserved in participating in early trials because of the past year's experience. Barry Layne, interactive vp for Ketchum Communications Worldwide, asked whether ''advertisers are being seen as venture capitalists'' by companies that are testing the technology and charging the agency and client to support the trial. Since he doesn't view interactive as a commissionable medium, he urged a different form
of compensation, such as equity or royalty. ' The nature of interactive is that it will be
better at generating response,'' said Wunderman's Stuart, citing experience with on-line
services where users tend to be more responsive. To be active in future tests though,
Stuart said he wanted realistic time tables, real roll-out plans, and real interactive
systems. ' We've grown weary of people promising the Holy Grail,'' said Stuart, ''and then
saying, 'We can't do that.' Copyright ASM Communications, Inc. (1994) ALL RIGHTS RESERVED Copyright © 1997 ASM Communications. All rights reserved. |
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