Challenges of Broadband Marketing

Challenges of Broadband Marketing PowerPoint PPT Presentation


  • 113 Views
  • Uploaded on
  • Presentation posted in: General

Download Presentation

Challenges of Broadband Marketing

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


1. Challenges of Broadband Marketing Char Beales President & CEO CTAM June 9, 2001

2. About

3. What is broadband? FCC: “advanced telecommunications services” – infrastructure capable of delivering a speed of 200 kilobits per second (kbps). NCTA: This transmission medium allows transmission of voice, data, and video simultaneously at rates of 1.544 mbps or higher. Broadband transmission media generally can carry multiple channels – each at a different frequency or specific time slot.

4. Does anybody really know what “Broadband” is? Sample N= 800Sample N= 800

5. Broadband features High speed Internet Always-on connections Fast downloads Quick surfing Interactive on PC – gaming, advertising Streaming video and audio Digital converged TV content IP Telephony services Show video after this Show video after this

6. Broadband market growth NR’s definition of high-speed access includes ISDN, LAN, cable modems and DSL connections.NR’s definition of high-speed access includes ISDN, LAN, cable modems and DSL connections.

7. Broadband over different media Cable modem – 6.4 million AT&T, Time Warner, Cox, Comcast, Charter have 60% of all cable modem customers DSL – 2.9 million SBC, Verizon, BellSouth, Qwest/US West have 80% of ADSL customers Set-top Box – Interactive TV, WebTV/Ultimate TV, AOL TV Satellite will thrive in rural areas Char will show her magazine clipsSatellite will thrive in rural areas Char will show her magazine clips

8. Broadband market forecast 36% online households = 21% of total U.S. households 28.8 million / 140 million = 21% About 140 million households in the U.S. -- 2000 Census 36% online households = 21% of total U.S. households 28.8 million / 140 million = 21% About 140 million households in the U.S. -- 2000 Census

9. Revenue forecast: cable modem and DSL access

10. Where do broadband consumers live? Among the 16 million online users with high speed Internet access, 2/3 are in top 25 local markets. Nielsen/NetRatings’ analysis includes only DSL,cable modem, LAN, ISDN.Among the 16 million online users with high speed Internet access, 2/3 are in top 25 local markets. Nielsen/NetRatings’ analysis includes only DSL,cable modem, LAN, ISDN.

11. Differences between broadband and narrowband users Activities and money spent online: The @home study was done online with 5,866 respondents. It’s part of [email protected]’s quarterly survey with Harris Interactive. Money spent online per month. Cahners In-Stat Group , April 200, time spent online, weekly.Activities and money spent online: The @home study was done online with 5,866 respondents. It’s part of [email protected]’s quarterly survey with Harris Interactive. Money spent online per month. Cahners In-Stat Group , April 200, time spent online, weekly.

12. What are consumers looking for? Speed Content – accelerated user experience Streaming media Bundled services – telephone, cable TV, home networking Daily life relevance – co-pollination of the Web and TV Competitive pricing – Real benefits at an affordable price, from providers consumers trust 75% of consumers are interested in broadband, but only 20% are wiling to pay for it. (The Yankee Group, 2001) Streaming media – Nielsen/NetRatings study cites streaming media as key reason people upgrade to a faster connection. Arbitron/Edison Media Research: 75% of broadband households are twice more likely to consume streaming media compared with those without broadband connections. Streaming media – Nielsen/NetRatings study cites streaming media as key reason people upgrade to a faster connection. Arbitron/Edison Media Research: 75% of broadband households are twice more likely to consume streaming media compared with those without broadband connections.

13. From technology to daily life relevance As technologies develop, consumers will see fewer differences between cable and DSL technologies. Broadband service providers need to provide value propositions that differentiate their services in new ways. They need to tailor services to appeal to specific audience segments in order to build strong services and deep customer loyalty. Bundles – bundled with cable subscription, telephony services home networking as a complement to entertainment and communications packages. Improve customer service and site performance – broadband will accelerate not only connection speeds and consumers’ expectations of everything from online customer service to accessibility and online experience The affinity approach – tailor services to attract specific, high-value segments of the online population. Examples: SBC and E*Trade – targeting E*Trade’s most active customers Covad and WebMD – targeting health professionals Drive loyalty by serving the needs of a target audience – consider affinity, region, and segmentation: telecommuters active traders home networkers gamers As technologies develop, consumers will see fewer differences between cable and DSL technologies. Broadband service providers need to provide value propositions that differentiate their services in new ways. They need to tailor services to appeal to specific audience segments in order to build strong services and deep customer loyalty. Bundles – bundled with cable subscription, telephony services home networking as a complement to entertainment and communications packages. Improve customer service and site performance – broadband will accelerate not only connection speeds and consumers’ expectations of everything from online customer service to accessibility and online experience The affinity approach – tailor services to attract specific, high-value segments of the online population. Examples: SBC and E*Trade – targeting E*Trade’s most active customers Covad and WebMD – targeting health professionals Drive loyalty by serving the needs of a target audience – consider affinity, region, and segmentation: telecommuters active traders home networkers gamers

14. Appeal of interactive features 525 computer assisted online interviews525 computer assisted online interviews

15. “Forced” appeal of interactive features

16. Broadband pricing Cox price is the rate for its Fairfax County system. National rates vary. This recent price hike indicates broadband will be a product for niche markets Cox price is the rate for its Fairfax County system. National rates vary. This recent price hike indicates broadband will be a product for niche markets

17. Challenges for DSL and cable companies Meet the demand for installation Speed up upgrades Provide easy-to-use technology Solve technical issues for multiple ISP’s Roll out next generation of Set Top Boxes Test applications

18. Challenges for DSL and cable companies Understand how to cross-promote brands Provide services to the home that enables new revenues from bundled value-added services (entertainment, e-commerce, home management and control) Transform the Internet into an entertainment and communications extension Develop content for the converged TV Persuade consumers to use the TV for interactivity Gaming OpenTV in UK – 89% of its revenue is from gamblingOpenTV in UK – 89% of its revenue is from gambling

19. Drivers to broadband adoption Complete network upgrades Increase availability of the service Allocate resources to marketing Differentiate offerings from other providers in the same area Competitive pricing Provide plug-and-play options – give consumers an economic incentive to elect self-installation Make technologies easy to use Open arms bring more customers – allow open access AOL’s role – AOL’s preference for cable over DSL Provide high-quality content to drive the user base and experience Drive Web and TV co-pollinating Examples: DSL providers (Verizon, US West) have been promoting self-installation Cablevision has rolled out plug-and-play [email protected] plans to offer do-it-yourself installation kits through retailer Radio Shack, it costs $800 each Providers indicate that 90% of consumers choose this option, and estimate success rates range from 75% to 85% -- Jupiter, 2000 Examples: DSL providers (Verizon, US West) have been promoting self-installation Cablevision has rolled out plug-and-play [email protected] plans to offer do-it-yourself installation kits through retailer Radio Shack, it costs $800 each Providers indicate that 90% of consumers choose this option, and estimate success rates range from 75% to 85% -- Jupiter, 2000

20. SmartBrief from CTAM Daily news scan on consumer and trades – marketing, broadband, emerging technology Delivered via email Click through to full story on publication Web site Free Use for yourself or your students

  • Login