Post on 30-Oct-2014
description
Media Planning & Buying in the 21st Century
CHAPTER 3
The Revolution
Media Planning & Buying in the 21st Century
I N T E G R AT E D M A R K E T I N G C O M M U N I C AT I O N SA C C O U N TA B I L I T Y
C O N S U M E R C O N T R O LE X P L O S I O N O F M E D I A O P T I O N S
C H A N G I N G FA C E O F A M E R I C AG L O B A L I Z AT I O N
R I S E & FA L L O F K E Y M E D I AT H E N E W M E D I A P L A N N I N G
Agenda
Media Planning & Buying in the 21st Century
Leo Burnett on IMC in 1950
“When you are planning an advertising campaign, the people involved in planning must be able to mentally integrate, in the thought and structure of the advertising itself, the things that should take place in the store, at the service station, in the showroom, at the ticket window, or when the salesman calls.”
--Leo Burnett in a 1950 speech to the ANA
Media Planning & Buying in the 21st Century
1. The IMC Revolution
Media Planning & Buying in the 21st Century
What is IMC?
“…a planning process designed to assure that all brand contacts received by a consumer or prospect for a product, service, or organization are relevant to that person and consistent over time.”
Media Planning & Buying in the 21st Century
The Client View
The #1 concern of the Association of National Advertisers (ANA) has been the inability of its internal & external partners (e.g., agencies) to deliver effective integrated marketing solutions to client marketing and communications problems.
Media Planning & Buying in the 21st Century
Tools of IMC
Goal is to use whatever marketing communications tools will best and most cost effectively address marketing problems or opportunities
IMC tools include: Advertising Direct Marketing Consumer & Trade Promotion Online advertising & Promotion Publicity Event Marketing Product Placement Custom Publishing And more
Media Planning & Buying in the 21st Century
Tools of IMC
Goal is to use whatever marketing communications tools will best and most cost effectively address marketing problems or opportunities
IMC tools include: Advertising Direct Marketing Consumer & Trade Promotion Online advertising & Promotion Publicity Event Marketing Product Placement Custom Publishing And more
Media Planning & Buying in the 21st Century
Barriers to IMC
Clients Internal fiefdoms and budget power Bid out agency’s ideas to suppliers Lack of IMC education
Agencies Client politics Lack of expertise in many marketing communications
areas Financial realities of making/losing money on IMC
Media Planning & Buying in the 21st Century
IMC: Do or Die
Clients Must stop shooting themselves in their IMC feet by
rewarding internal marketing groups for pursuing programs which are not on strategy
Stop disincentivising their agency
Agencies Some agencies have had difficulty delivering IMC
programs Agencies must learn how to profitably deliver IMC
solutions Failure to do so will put business at risk
Media Planning & Buying in the 21st Century
2. Accountability & ROI
Media Planning & Buying in the 21st Century
Accountability & ROI
Historically, There has been little accountability for results and ROI based on most forms of marketing communication, except for those which are quantifiable by nature (e.g., direct mail) Many variables affect sales results Brand managers prefer predictable results of trade
promotion Is a sales increase due to increased awareness or to in-store
promotional activities?
ANA is renewing its call for better metrics to measure ROI
Media Planning & Buying in the 21st Century
3. Consumer Control
TimeConstrained
Enabled
Relevance
Power
Media Planning & Buying in the 21st Century
4. Revolution in Media Options
ProliferationFragmentationDeclining Effectiveness of TelevisionNewspapers in FreefallConvergenceAddressable MediaInteractive Media
Media Planning & Buying in the 21st Century
Proliferation of Media
Media Planning & Buying in the 21st Century
Fragmentation
Audience Fragmentation
Media Planning & Buying in the 21st Century
Convergence
Convergence is the merger of two or more media to create a new medium Internet + Television = Internet TV Internet + Newspapers = Online Newspaper Internet + Magazines = Online Magazines Movies + Games = New Games Messaging on cell phones
Media Planning & Buying in the 21st Century
Addressable Media
A Super Targeting Methodology In early-mid stages of development Utilizes set top boxes in cable TV homes Substantial information collected on subscribers Could be used to precisely target audiences for
commercials Pick up truck commercial goes to truck owners Corvette commercial goes to sports car enthusiasts
Google a prime developer with Echo Star Cable Cable industry’s Project Canoe
Media Planning & Buying in the 21st Century
Interactive Media
Traditional Interactive Media Techniques 800 numbers Reader service cards URLs in ads
Digital Interactive Media Websites Internet/search Social Media Mobile
Interactive Television (iTV) Has been available for years on a limited # of cable systems May be getting closer to a real debut 75% surveyed execs think iTV would be an effective source
of lead generation and could become a large industry
Media Planning & Buying in the 21st Century
5. Changing Face of America
New Target Markets?
Media Planning & Buying in the 21st Century
U.S. Demographic Trends
1990(Millions)
2010(Millions) % Change
African Americans
30 40 33.3
Asians 7 23 228.6
Boomers(Based on 55+)
52 78 50.0
HispanicOrigin
22 48 118.1
Media Planning & Buying in the 21st Century
6. Globalization
The New Media Planning:
Integrated Marketing Communications
Media Planning & Buying
TraditionalMedia
ExperientialMarketing
New/DigitalMedia
SalesPromotion
PublicRelations
DirectMarketing
Media Planning & Buying in the 21st Century
The New Media Planning
Now FutureTelevision 44% 15%
Radio 10 3
Print 33 25
Outdoor 4 3
Search 9 22
Interactive -- 30
Mobile <1 2
% of Spending
Source: Kellogg on Advertising and Media & Thumbnail Media Planner