View
16
Download
3
Category
Preview:
DESCRIPTION
Allocating Media Resources in a Push and Pull Marketplace. Don E. Schultz and Martin P. Block Northwestern University DMEF Direct/Interactive Marketing Research Summit San Diego 18 October, 2009. Customer/ Prospect. Marketer. Media Allocation Used to be Easy. - PowerPoint PPT Presentation
Citation preview
Allocating Media Resources in
a Push and Pull Marketplace Allocating Media Resources in a Push and Pull Marketplace
Don E. Schultz and Martin P. BlockNorthwestern University
DMEF Direct/Interactive Marketing Research Summit
San Diego 18 October, 2009
Media Allocation Used to be Easy
Media Allocation Used to be Easy
Marketer Customer/Prospect
Agency → Media → Retailers
Messages and Incentives
Unique Products/Offers
Efficient Delivery Was Always the Answer
Today’s “Push” and “Pull” Communication System Today’s “Push” and “Pull” Communication System
Marketer Customer/ Prospects
Agency → Media → Retailers
Competitors
Competitors
Competitors
Competitors
Messages and Incentives
Commoditized Products/Services
Word-of-Mouth New Forms of Media
Web Search
Em
plo
yees
/Rec
om
men
der
s/F
rien
ds
/Infl
uen
cers
Allocation Based on Message Distribution Doesn’t Work
Allocation Based on Message Distribution Doesn’t Work
Response
Media Exposure
Media Exposure
Media Exposure
MediaConsumer
Potential SynergyVia Simultaneous Media Usage
(Messages Reinforced)
Potential Fragmentation Of Attention
(Message Impact Diluted)
Foreground/Background Media
Time Allocated To Each Media Form
Media Consumption Measures Are Needed
Media Consumption Measures Are Needed
Schultz and Pilotta, ESOMAR, 2004
Questions Media Consumption Raises
Questions Media Consumption Raises
How Do Online and Offline Intersect and Combine at the Customer Level? What media forms do customers use in combination?
What media forms do customers use simultaneously?
Is there synergy among and between online and offline?
If so, how can we measure the combinations?
Who does the planning and allocation in a push and pull marketplace?
Simultaneous Media Studies (SIMM) – BIGresearch
Simultaneous Media Studies (SIMM) – BIGresearch
A method of understanding how consumers use and consume media today and the impact it has on them
Methodology Conducted twice per year in the USA since 2002. China since 2006 14 separate waves (15th in analysis now) 200,000+ individual responses (17,000 more in Wave 15) Drawn from on-line interactive base of 60 million individuals Double opt-in methodology Captures media usage, retailer preference, influence of media, past and
future purchases, etc. Includes 31 media forms – online and offline Accuracy of .01 level Benchmarked to non-online studies Weighting/balancing of 14 US Census 2000 age-sex cells
Testing in Mexico and other countries
Four Critical Measures in Media Consumption
Four Critical Measures in Media Consumption
What media form is accessed
Amount of time spent with each media form
Media combinations – what media used together and simultaneously
Which media form has the greatest influence on product purchase
How Much Time Consumers Spend With Each Media Form
How Much Time Consumers Spend With Each Media Form
Avg Minutes per Day
Email 131.3
TV 129.6
Internet 127.5
Radio 93.5
Direct 56.3
Magazines 49.1
Newspaper 44.8
IM 40.8
Games 36.6
Satellite 22.0
Web Radio 14.4
Blog 11.7
Measures #1 and 2
First Quarter, 2008, BIGresearch
More Important: the Media Forms People Use
Together…
Their Media Combinations
More Important: the Media Forms People Use
Together…
Their Media Combinations
US Media Combinations US Media Combinations Primary Medium (When …,do you simultaneously ….)
(Regularly only)
1st Quarter, 2008 – BIGresearch
Online TV Maga-zines
News-papers
Direct Mail
Cell Phone
Radio
Online 26.2 6.1 8.1 9.9 13.9 17.1
TV 37.5 20.2 24.1 21.4 14.9 8.0
Magazines 7.0 10.3 5.0 8.3
Newspaper 10.3 11.6 4.7 11.3
Direct Mail 21.0 14.2 6.7 10.7
Radio 21.7 3.8 11.8 12.6 12.2 11.7
Measure #3
Media Combinations Are What Create Media Synergy…
The Biggest Challenge in Media Planning Today!
Media Combinations Are What Create Media Synergy…
The Biggest Challenge in Media Planning Today!
Influence Media Form Has on Consumer Purchase Decisions Influence Media Form Has on
Consumer Purchase Decisions % Influence
Word-of-Mouth 36.2
Coupons 28.4
Inserts 21.5
TV 20.8
Newspapers 20.0
Read Article 19.8
In-Store 19.6
Direct 19.1
Magazines 17.0
Cable 13.6
% Influence
Radio 13.1
Internet 12.3
Email 11.7
Outdoor 7.2
Yellow Pages 7.0
Blog 3.1
Satellite 3.1
IM 2.9
Web Radio 2.7
Picture Phone 2.2
*Across 8 product categories, Apparel/Clothing, Automobile, Eating Out, Electronics, Grocery, Home Improvement, Medicines, and Telecom/Wireless
1st Quarter, 2008 – BIGresearch, Inc.
Measure #4
Using Those Four Measures, We’ve Developed Predictive Media
Models…
Using Those Four Measures, We’ve Developed Predictive Media
Models…
An Example, In the Computer Category, What Media Forms
Do Consumers Prefer?
An Example, In the Computer Category, What Media Forms
Do Consumers Prefer? Do you plan to make any of the following
major purchases within the next 6 months?
Example: Computer
No 84.81%
Yes 15.19%
Total 100.00%
First Quarter, 2008 – BIGresearch
What Would Be the Best Media Combination to Reach These
Intended Computer Purchasers?
What Would Be the Best Media Combination to Reach These
Intended Computer Purchasers?
Purchase Intent and Media Influence Purchase Intent and Media Influence Do you plan to make a computer purchase within the next 6 months by Media Influence
No Yes Total
Coupons 26.8 31.0 27.4
Inserts 20.6 25.0 21.3
Newspapers 19.8 24.7 20.5
TV 19.2 26.8 20.3
In-Store 18.3 23.3 19.1
Direct 18.2 23.1 18.9
Magazines 15.6 22.7 16.7
Cable 12.3 19.3 13.3
Radio 11.7 18.5 12.7
Internet 10.6 19.3 11.9
Email 10.4 16.8 11.4
Yellow Pages 6.5 10.5 7.1
Outdoor 6.3 11.0 7.0
First Quarter, 2008, BIGresearch
Pruned CHAID TreePlan to Buy a Computer by Categories of Media
Influence
Pruned CHAID TreePlan to Buy a Computer by Categories of Media
Influence
15.19%(100.0%)
11.2%(60.9%)
17.6%(18.8%)
23.3%(21.1%)
14.9%(17.9%)
17.7%(6.4%)
19.6%(12.6%)
15.2%(4.7%)
22.2%(7.9%)
20.9%(12.1%)
26.6%(9.0%)
20.6%(3.0%)
29.5%(6.05)
No Internet Low Internet High Internet
Some Radio
Some Email
Some Email
No Cable Some Cable
Low Magazine High Magazine
Low Email High Email
Total Plan to Buy Computer
In the Increasingly Complex Push and Pull Media Marketplace, Media
Consumption Is the Key Element
In the Increasingly Complex Push and Pull Media Marketplace, Media
Consumption Is the Key Element
We’re Working on Media Synergy
We’re Working on Media Synergy
Media Synergy Comes of Age – Part 1Journal of Direct, Data and Digital Marketing Practice
Don E. Schultz, Martin Block, and Kalyan Raman Volume 11, Number 1, July – September 2009
Media Synergy… Revisited… and now, Relevant - Part 2
Journal of Direct, Data and Digital Marketing Practice
Don E. Schultz, Martin Block, and Kalyan Raman Forthcoming
Questions or Comments?Questions or Comments?
Recommended