Nielsen announced its plans to break the company up into two parts–Global Media and Global Connect. This allows the company to focus more on how advertising sells things beyond the packaged-goods industry. This gives a peak into the importance of focusing on the totality of a customer’s needs versus a specific product need.
As a combined company, Nielsen was focused by vertical - CPG. This gives a very narrow access of the consumer, and only constitutes about 9% of total advertising revenue. In other words, Nielsen is a dinosaur in a digital world.
Is it possible for Nielsen to pivot into a digital savvy company? And will the split transform the Global Connect business into a digital savvy platform. Innovator’s Dilemma - Professor Clayton Christensen - cited that innovation’s value accrues in the middle of the S-curve. This is very difficult to justify to a shareholder base that is short term profit oriented. As seen in our digital marketing class, from concept to market ready, there are many advertising service providers entrenched in the process, each giving a niche service that takes a cut of the advertising fee. It remains to be seen whether Nielsen is capable of turning the business around and transform themselves into a hip digital marketing service provider, and expand their customer base beyond CPG.
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