Is the Phone Call an Outmoded Communication Tool?

November 15, 2010

The debate may have switched from “is cold calling dead” to “is the phone call in general dead” for agency new business.

A growing number of persons consider phone calls to be interrupting and annoying. The phone call is rapidly fading as a generation of e-mailing, followed by an explosion in texting and social media, has pushed the telephone conversation into serious decline.

TechCrunch writer, Alexia Tsotsis, recently wrote an insightful article that has been stirring a lot of debate, “The Phone Call is Dead.”

She writes,

“Less obsolete but more annoying than a handwritten letter, the phone call is fading as a mode of communication even if the nostalgic will be singing its praises for a while.”

While Alexia points out that to say something is dead in the tech industry, actually means it’s on the decline, she provides some good points regarding the fall of the call, I’ve also included some of additional data on this topic:

  • We reached a breaking point in 2008 when text messaging topped mobile phone calling in usage, and we’ve been living in a world dominated by text-based communication ever since.
  • According to Nielsen data, voice usage has been dropping in every age group except for those past the of age of 54.
  • 78 percent of teens recognize the functionality and convenience of SMS, considering it easier (22 percent) and faster (20 percent) than voice calls.
  • Voice activity has decreased 14 percent among teens, who average 646 minutes talking on the phone per month.
  • Interest in voice calling is now sharply differentiated by age, and few technological advancements have ever survived while failing to capture the interest of 22 year olds.
  • The fall of the call is driven by 18 to 34-year-olds, whose average monthly voice minutes have plunged from about 1,200 to 900 in the past two years, research by Nielsen shows.
  • iPhone users (and to greater extent smartphone users in general) are not primarily using our phones to make calls.
  • We now have access to a plethora of free, internet-based calling options like Google Voice.
  • Not only are people making fewer calls, but they are also having shorter conversations when they do call. The average length of a cell phone call has dropped from 2.38 minutes in 1993 to 1.81 minutes in 2009, according to industry data.
  • Between 2005 and 2009, as the number of minutes people spent talking on cell phones inched up, the number of cellphone messages containing text or multimedia content ballooned by 1,840 percent.
  • Cellphone industry group CTIA saw text messaging double from June 2008 to June 2009, when Americans sent a staggering 135.2 billion text messages, and its data backs up the idea that voice is declining.
  • Land lines are disappearing. Verizon, the country’s second-largest land line carrier after AT&T, says its hard-wired phone connections have dropped from 50 million in 2005 to 31 million this year.

“The fundamental way we people communicate is just about to change again,” said Delly Tamer, CEO of Letstalk, which sells a variety of cellphones. “We humans will now start to rely less on our mouths and more on our heads and our fingers.”

Alexia Tsotsis, is LA Weekly’s internet culture reporter, and then as SF Weekly’s web editor. Before she joined TechCrunch, she ran the SFweekly.com website while staying on top of memes, the tech scene, and human behavior in the digital age. Read here entire article: “The Phone Call is Dead.”


If 2009 was the year to forget for the advertising industry, what’s next?

December 31, 2009

 

2009 has become the year to forget for the advertising industry.

“If you look at 2009, we have not seen a convergence of so many issues and crises at the same time. It was the perfect storm,”says Maurice Levy, chief executive of Publicis Groupe, one of the world’s largest ad companies, with clients including General Motors, Procter & Gamble and Coca-Cola.

It’s “the worst” the business has seen since Zenith began tracking ad spending 21 years ago and “likely the worst since World War II,” says Steve King, Zenith’s global CEO. “It’s been between bad and horrific.”

Over 163,400 advertising jobs lost since the beginning of the recession.

A round-up of some predictions for the advertising industry for 2010 may be brighter but still a difficult year ahead.

For Ad Industry, 2010 Promises Scant Relief – WSJ

More Firing Than Hiring at Ad Agencies – Ad Age

Seven Predictions for 2010 from eMarketer’s CEO

‘Great Race’ Between Traditional, Digital Shops – ADWEEK

Four ways technology will change advertising in 2010 – CSMonitor.com

How To Fix A Broken Advertising Industry – Forbes

Convergence at Heart of Top 2010 Ad Trends – Nielsen

A lot of small-to mid-size ad agencies have been the exception to the gloom and doom of 2009. Many have actually prospered during this period. 2010 could be a break out year for your agency’s new business if your agency has a consistent inbound new business pipeline generated by a clear focus and appealing point of differentiation to a specific target audience.

Additional articles that may be of interest:

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How Teens Use Media: A Nielsen report on the myths and realities of teen media trends

June 27, 2009

This is one of those rare post stepping outside the sphere of agency new business. I found this new Nielsen report very enlightening and wanted to share it with my readers. The report debunks a lot of the myths on “How Teens Use Media.”

You may be surprised to learn that teens can often be reached  by the same means as their parents.

Here are a few key findings:

  • Teens are NOT abandoning TV for new media: In fact, they watch more TV than ever, up 6% oveer the past five years in the U.S.
  • Teens love the Internet … but spend far less time browsing than adults: Teens spend 11 hours and 32 minutes per month online – far below the average of 29 hours and 15 minutes.
  • Teens watch less online video than most adults, but the ads are highly engaging to them: Teens spend 35% less time watching online video  than adults 25-34.
  • Teens read newspapers, listen to the radio and even like advertising more than most.
  • Teens’ favorite TV shows, top websites and genre preferences across media are most are mostly the same as their parents.

Click here to view the entire report.

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