Gaining Acceptance in the Home Market

The 3D home market appears to be stuck in the early adopter stage and is going to take the most work of any of 3D market segments to gain acceptance. The success of 3D depends on the public, content providers, the display providers, and the transport media for the content. All must come together precisely for the general public to accept this as more than just another fad this is where using something like market research by Luth Research comes into the play.

The 3D home market is stuck in a vicious cycle. People are not buying 3D televisions (or at least not buying for the 3D capabilities) because they either don’t know about the technology or they have little to no access to 3D content. They do not have access to 3D content because broadcasters and other transport media are not willing to put the money into such a small market. This brings us back to the end users.

Stubbornly pushing 3D into the market will prove to be extremely difficult if not impossible. The best method develops an interest in 3D that would result in a market pull as opposed to a market push, and to do this it may be worth employing the Internet Marketing Services to make sure that this is executed correctly. Our job is to convince the public to accept 3D as a new technology that provides a better user experience than the older 2D or flat technology. The market pull technique will provide the proof necessary to convince broadcasters and other media transport suppliers that there is a market available and money to be made. This will avoid the halfhearted attempts of the past which failed miserably. Perhaps something could be learned from those who provide inbound marketing for B2B service providers in how to manage this. Additionally, the market pull technique will also provide the incentive for manufacturers and developers to invest in the right hardware and content to maintain the target market interest.

Each 3D product area has different challenges and opportunities for success. This paper discusses the development of a marketing strategy for a successful acceptance of 3D in the home market. The most success can be gained if a group of professionals representing hardware, broadcast, other media transport, and content providers come together under a single group to fine tune and implement an overall marketing campaign. If a marketing challenge like this is up your street, you could even check out Interim Management Jobs to take on a task like this one.

This paper covers the current state of the market, a definition of the right marketing techniques, positioning 3D in the right light, overcoming public perceptions, and overcoming negative press. The purpose of this paper is to bring the 3D products and services markets back to some basics and to instill some behaviors that will help gain acceptance into the home market.

Home Market Defined

The 3D home market is in the early adopter stage and is going to take the most work to gain acceptance. The problem includes public perception, lack of content, and the right display media. Public perception is the largest hurdle. According to a 2012 CNET article which quoted a Nielsen study claimed that 57 percent did not want to wear 3D glasses and 90% felt that watching 3D would interfere with other tasks they perform while watching TV. These studies are useful in showing the public’s current perceptions; however, they are flawed since the vast majority of people have not experienced 3D on the small screen. Additional studies are needed to gauge the public acceptance based on the public’s experience. I will cover this in more detail in the “Overcoming Perceptions” section. Until that time, perception is today’s reality. Negative public perceptions can be reduced if not altogether eliminated through the right combination of the products, public education and managing expectations.

When it comes to choosing a 3D television set, the public has many choices from glasses (passive or active) to autostereoscopic sets. Today most 3D capable televisions require glasses. Autostereoscopic (better known as glasses-free) televisions provide an alternative for those who are adverse to wearing glasses while watching their favorite shows.

While many of the autostereoscopic displays of the past have lacked clarity and brightness, the introduction of 4k televisions and eye tracking technology provides a viable glasses-free solution for the home. Both Vizio and Sharp have announced autostereoscopic versions for Q4 2014. Additionally, Sharp showcased their 85 inch 8k autostereoscopic and Sony has also announced an 8K autostereoscopic television. In the end, glasses or no glasses will not be a barrier to public acceptance of 3D in the home market. The end user can choose the right technology that fits their desired viewing experience.

Many also believe that watching 3D for extended periods can cause eye fatigue, headaches, and even harm the viewer’s eye sight. I have also seen press reports that state that many are stereoscopically impaired. Depending on the report, these numbers range from 10 to 20 percent. Much of these claims have little basis in fact. Much of the problems with eye fatigue, headaches and other discomforts can be corrected with the proper use of the 3D effects. These effects should not be discounted. Proper research with experts in the Ophthalmological field can help either discount the claims or help us make corrections to the 3D products and content to reach the widest possible audience with little to no adverse effects. Additionally, for those who suffer from headaches, the amount of 3D can be adjusted at the television for the best possible comfort.

For the home viewing of television shows, sports, and movies, the main driver for content will continue to be the availability and functionality of television sets. However, for convenience, more and more viewers will also depend on other means of watching their favorite events such as tablets and smart phones.

The figure on the right shows the expected growth in 3D television sales in comparison to the actual 3D television sales. Starting in 2011, 3D television sales started to slide. However, on a positive note, higher end 4k televisions contain 3D capability. According to a 2011 TVBEurope article, almost half of all UK households will have 3D capable television within 3 years. A more recent article in IPTV News dated September 2013, states that by 2017 3D TVs will reach 58% of all TVs sold around the world. In 2012 18% of televisions sold were 3D capable. In Europe, the number of 3D capable televisions was far higher with the US trailing behind.

On a negative note, 3D is not the main selling point for these televisions. The TVBEurope article says that the surge in 3D capable televisions is attributed to “unwitting customer.” The key here is to market the 3D feature, educate the consumer as to the 3D experience in the home, and make 3D one of the key sellable features by increasing demand for 3D. This is not a mistake for the television manufacturers to future proof their high end televisions with 3D capability. However, it would be a mistake for 3D content providers to not take advantage of this teachable moment and to take advantage of a ready-made installed base to drive the right types of quality content for an increased home market demand.

According to Digital Trends November 2011 article, the 3D home market lacks content. In 2013 with ESPN and BBC dropping their 3D channels, consumers have fewer choices in 3D television. Until the broadcast industry sees the payout of offering 3D television, 3D content providers can use Blu-ray, video on demand (VOD), and internet based content. The broadcast industry will not take a chance on 3D until they see enough demand for 3D content. The Blu-ray 3D market has shown growth over the past couple years with quite a few 3D titles available. According to a 2012 article in Good3DTV, the growth in 3D sales and 3D Blu-ray players was having an impact on overall 3D TV sales growth. The acceptance of 3D television will happen sooner in some parts of the world than others. As reported by Al Caudullo of 3DGuy.tv after returning from China 3D Expo 2013, China has already committed to an aggressive plan for 3D TV with 10 independent 3D channels. This will only expand as other countries follow this example.

In the gaming market, there are very few game choices. Nintendo’s 3DS leads the handheld market. After the 3DS’s first year and as reported by Engadget in March of 2012, approximately 4.5 million devices were sold which surpassed its sales figures of the previous DS models. In its first year over 100 3D games were released. For large format gaming consoles, both Xbox and PS3 have 3D capabilities. According to 3D Tested, there are currently there are over 122 games available for the PS3 and Xbox has only 46 games currently available. When visiting a local store, I found only a few PS3 3D titles and no Xbox titles available in 3D. Additionally, there are quite a few 3D capable PC games.

Applying the Right Marketing Techniques

The home market is a complex market and includes: televisions, gaming, phones and cameras. We are not going to be able to develop a wholesale marketing plan to instantaneously move the 3D products from early adopter to the mainstream. This is going to take a targeted approach. I would use hints from the book Crossing the Chasm by Geoffrey A. Moore by focusing on one customer group at a time and using that group as the starting point for marketing to the next group. With each group, the content must be finely crafted for the correct 3D experience and the messaging finally crafted for the right user perception.

To start this approach, the right target or niche must be selected with the greatest chance for success: a segment with higher disposable income, a segment that is more likely to accept a new technology. Once acceptance is obtained in this market, find a closely related segment and build on this success. As this builds, you will find that your reach will start getting larger and larger. If you are reading this paper and know what market we should start with, you would probably be wrong. I could probably make an educated guess and would also probably be wrong. It is going to take a group analyzing the entire market numbers to have the best chance of being right. Start out by looking at an analysis of who is currently buying the 3D sets and for the purpose of 3D and who is not. Also look at an analysis of who is currently buying 3D content. Ask the question: Can we build onto the current market?

Positioning 3D

In order to properly position 3D in the market, we must first understand one key point that will surely meet with resistance: The target market does not need 3D. Yes I said it. In fact no visual market needs 3D: not professional computers, not scientific, not digital signage. In fact, no one needs ultra-high definition, no one needs high definition, no one needs color, no one needs sound. We need to get away from thinking about the product and start thinking about the customer’s true needs. A marketing professor once told me that a drill manufacturer’s customers don’t need a better drill, they need a hole. So our target market does not need a 3D display, they need a different or better viewing experience. 3D adds another tool to aid in the target users viewing experience. It must be an improvement to the current viewing experience and must aid in the telling of your story and not take it over. This cannot be said enough times: The advantage to presenting in 3D is that it adds to the viewer’s experience.

Product positioning is the statement that identifies and defines the product brand. For 3D products, we are obviously not going with the “me too” approach. We are going to differentiate the 3D experience with the 2D experience. In order to capture all of the attributes of a positioning statement, I always start with the following outline:

• For (target customer – not market. We need to make our position personal.)
• Who (statement of need or opportunity) – This would be something like, “who need a better viewing experience” or “who needs connection or emersion into the story.”
• The (product or service name)
• is a (Product category or market segment – 3D display, 3D content)
• that (statement of key benefit – compelling reason to buy – a compelling reason to change the status quo),
• Unlike (primary competitive product or alternative – 2D alternative),
• our product (statement of primary differentiation – in other words, what does the target customer get from the 3D product that they do not get from 2D).

This will form the basis for the messaging and value proposition. This messaging and value proposition will then be consistently used for all advertising, media, PR, social media, web sites, and social media. Note that we are not going to state that 3D is replacing 2D. It is another choice or enhancement to the viewing experience.

Keep in mind that unlike the early marketing day, we as marketers are not in control of our messaging. The target audience is in charge. We need to talk with them and not at them. In fact, we should recognize that our target customers can produce more messages than we could ever create. We should engage in a campaign that not only creates a compelling story, but also creates a dialogue with the end users. This will spark this relatively untapped tool with messages that invoke their passions. Additionally, be ready to change at any given moment. If we properly open up a dialog with our campaigns, we will learn as much from our target customers as they will from our campaign.

The strategy required for the different 3D markets must go beyond seizing the target users’ attention with constant messaging, but this strategy must also sustain their attention. In order to sustain this attention, we need a complete understanding of the target market’s needs importance, interests, emotional appeal, badge value, and risks or worries. The biggest mistake that can be made here is to either trivialize or ignore any of these points.

Keep in mind this is not a competition between 3D and 2D or even between two opposing new technologies such as 3D and 4k. In fact, as Fabien Remblier points out in his November 2013 article “Make 3D Love, Not 4K War,” “4k opposition does not exist, …, because 3D and 4K are two totally different things.” He continues by pointing out “where 3D brings a new experience for the Viewer, 4K is finally only an improvement of HD.” He also points out that with both 3D and 4k combined we “need to instead look at the prospects that their combination makes for professionals and ultimately for the spectators.”

The right approach can speed the acceptance of 3D as the preferred viewing experience.

Overcoming Perceptions

Public perception is the largest hurdle. According to a 2012 CNET article which quoted a Nielsen study claimed that 57 percent did not want to wear 3D glasses and 90% felt that watching 3D would interfere with other tasks they perform while watching TV. Negative public perceptions can be reduced if not altogether eliminated through the right combination of the products, public education and managing expectations.

Most of the public perception is not based on actual experience. It is based on what they heard in the press or based on what they anticipate. I recently spoke with a real technical friend who I consider very intelligent. When I brought up 3D television for the home, he immediately snapped back: “I am not wearing those darn glasses.” This is the same person that years ago had the same opinion of 3D movies. He currently goes to and enjoys 3D movies in the theater.

A method is needed to gauge the actual acceptance versus perceived acceptance. Additional marketing research is required to find out the reasons for these perceptions. Additionally, focus groups in different geographic areas using different 3D technologies and content can be very useful to identify what is real and what is perceived. Once we have an understanding of what is real and what is perceived, an education program targeted to your market must follow. Use press coverage, social media, roadshows, and public events. Use every possible opportunity to get the word out to the public. By the way using 3D professional groups only educates 3D professionals.

Start this process with your initial target market. Your target market may be willing to accept glasses or even the current state of autostereoscopic displays. This may give more time for the advancement of the technology as we move forward from the initial target markets to the next.

Keep in mind the work it took in the early adoption of HDTV in 1989. Very few users were equipped with HD and there was very little content available. When I was purchasing my first HDTV, I was advised to not spend the money on HD. Times have changed. (By the way, I did not listen. I am pretty stubborn.) The key is going to be educating the public on 3D, creating a market acceptance and a market demand.

Overcoming Negative Press

Currently there is an overabundance of negative press proclaiming the death of 3D. Additionally, most press releases proclaiming the opposite have fallen on deaf ears. This is part of the reason for the negative perception. One PR expert once told me that if you don’t like the conversation, either change the conversation and story or find someone else to talk with. Let’s do both.

Let’s change the conversation. Let’s talk about advances in the user experience. Let’s talk about what we have learned about the technology and where it is going. Do not get into a argument with someone who is not going to change their mind. Let’s change who we are talking with. Let’s use other press, other editors, and other channels such as blogs and social media to get out our message. Another method would be to use reverse SEO. Put out as many messages, articles, and press releases with positive messages targeted to the public that will in turn push down the bad press in the search engine listings.

When writing press releases, press releases must be written to the target audience, and not just posted in the hopes that someone somewhere picks up the post. Most press releases today have product centric titles and text. Additionally, they are posted on the top press release submission websites.

When writing a press release, the target audience is the press for that one segment that you are trying to reach. Select the right press and editors that match your current target market. A press release targeted for a broad market will be far less powerful. If you are targeting multiple press for multiple markets, write multiple press releases.

The press release title along with the accompanying text must be about a subject that attracts the editor or editors that you are interested in attracting. Unless these editors are sitting at their desk just waiting for your specific product, a product specific title will not attract much attention. Along with the press release document, develop a frequently asked questions document (FAQ). Anticipate any questions or reactions that you will need to respond to. Additionally, call the editors both before and after release of the press release. Before you send out the release, let them know that something new and of interest is coming. Give them just enough to peak their interest. Once you release or post the document, give them a call again. This is not the time to be shy. Keep the conversation about their area of interest and what your product does for this area of interest.

For a final point, locate editors who are more likely to listen to what you have to say. In my years with working with different press, I have found that editors and bloggers fall into three categories: 1) ones that listen to what you have to say in order to respond, 2) ones that don’t listen at all – either interrupt or politely wait until it is their turn to talk, and finally 3) listen with the intent to understand. It is the third group that you want to talk to. The first two groups will miraculously change their story once 3D bashing goes out of fashion. The third, more friendly and open group, are the ones that need to be educated as to what good 3D is, what bad 3D is, and how 3D enhances the user experience. There are a few groups that can help in this education such as the International 3D Society or UP3D in Europe. An invite to one of their conference can go a long way in educating the press.

By: Ed Mazza