Everything is Media

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    1THE JOINED UP MEDIA COMPANY

    Everything is media, and media is everything

    Latest Trends in Media

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    2THE JOINED UP MEDIA COMPANY

    IN THE WORDS OF DAVID BECKHAM..

    I dont make predictions, and I never will

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    THE PHILOSOPHY

    Everything is media

    How technology, lifestyle and measurement changesare causing us to re-evaluate our definition of what isa media contact

    And media is everything

    How existing and emerging media planning conceptsdrive consumer behaviour

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    WHAT IS THE EVIDENCE OF THE GROWTH INEVERYTHING IS MEDIA?

    Winners of IPA Effectiveness awards use an averageof four different media

    As markets evolve, the dominance of TV reduces

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    WHAT IS THE EVIDENCE OF ITS GROWTH IN IMPORTANCE?DISTRIBUTION OF ADVERTISING EXPENDITURE

    Newspapers43 %

    Magazines19%

    TV26 %

    Radio4%

    Cinema1%

    Outdoor5%

    Internet2%

    Newspapers41%

    Magazines15%

    TV30 %

    Radio

    4%

    Cinema1%

    Outdoor

    6%

    Internet3%

    Germany United Kingdom

    Newspapers32 %

    Magazines4%

    TV52 %

    Radio5%

    Cinema

    1%

    Outdoor

    6%Internet

    0%

    Newspapers12%

    Magazines14%

    TV61%

    Radio7%

    Cinema1%

    Outdoor5%

    Internet0%

    PolandTurkey

    Source: Carat 2003

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    WHAT IS THE EVIDENCE OF ITS GROWTH IN IMPORTANCE?% ADVERTISING BUDGET SPENT ON TV

    0

    10

    20

    30

    40

    50

    60

    70

    80

    90

    R o m a n

    i a

    U k r a i n e

    F Y R M a c e d o n

    i a

    S e r

    b i a

    &

    S l o v a

    k R e p u b

    l i c

    C r o a t

    i a

    B u l g a r i a

    P o l a n

    d

    S l o v e n i a

    P o r

    t u g a

    l

    I t a l y

    T u r k e y

    C z e c

    h R e p u b

    l i c

    R u s s i a

    S p a

    i n

    H u n g a r y

    G r e e c e

    B e l g i u m

    F r a n c e

    U n i t e d K i n g d o m

    N o r w a y

    G e r m a n y

    A u s

    t r i a

    N e t

    h e r l a n

    d s

    S w e d e n

    D e n m a r

    k

    F i n l a n

    d

    Classic model

    Diversification model

    Source: Carat 2003

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    WHY HAS THIS HAPPENED?

    TV Media Inflation

    Saturated consumers

    Busy consumers

    Media fragmentation

    Better measurement

    More specialists

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    HOW HAVE ADVERTISERS AND AGENCIES RESPONDED ?

    Diversification and creativity

    Rethinking consumer planning around an organisingidea

    Using new measurement techniques

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    DIVERSION & CREATIVITY IN SLOVAKIA:CATEGORY BREAKER MEDIA:HVB CREDIT

    HVB Bank in Slovakia had a particularchallengeTo stimulate take up of credit the bankwanted to stress the benefits of buyingproducts even when you dont have themoney at present.A sensitive message so a mass TVcampaign was out.So the media solution was to put the TVad in an environment where shoppingaspirations would be top of mindThe media was TVs in a retailer window,NAY (electronics retailer with 20% share)

    Three times uplift in credit applications

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    DIVERSION & CREATIVITY IN CROATIA:LEVERAGE TV CAMPAIGN

    Print Advertisment In support to Duracell

    Racing Bunny tvcadvertisement invitesconsumers to joinDuracell bunny in histour around Croatia,

    have fun, learn aboutchildren with specialneeds and take aphoto which wasagreed with Olympus

    Headline Copy: Gowith the bunny andprepare for the foto

    shoot!

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    HOW HAVE ADVERTISERS AND AGENCIES RESPONDED ?

    Diversification and creativity

    Rethinking consumer planning around an organising idea

    Using new measurement techniques

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    RETHINKING COMMUNICATIONS PLANNING:THE SIX STEPS

    Set up a team and a collaborative processDefine the brand challenge

    Get consumer insightDevelop an organising ideaExecute the idea into relevant channelsDesign of evaluation

    Source: Julian Saunders

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    AN ORGANISING IDEA CAN BE.

    A Message

    A symbolic idea

    Brand identity

    Campaign theme

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    WHAT IT MEANS FOR MEDIA/CHANNEL PLANNING

    Starts with the consumer, not the media.

    Media/channel combinations often required.

    Winning consumer attention requires more creativity.

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    HOW HAVE ADVERTISERS AND AGENCIES RESPONDED ?

    Diversification and creativity

    Rethinking consumer planning around an organisingidea

    Using new measurement techniques

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    16THE JOINED UP MEDIA COMPANY

    We manage what we

    measure!

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    IF WE MEASURE IN FRAGMENTS, WE MANAGE IN FRAGMENTS

    To integrate marketing effectively managers need a tool

    that measures the contribution of differentcommunication touchpoints . holistically

    Market Contact Audit

    (MCA)

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    P&G ENDORSEMENT

    An innovative tool that addresses an urgent need of theindustryit is based on a simple and solid consumer interview,from which a wealth of data is derived

    Hans Ulrich Krause

    (Global Media Research - Procter & Gamble)

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    WHAT IS A TOUCHPOINT?

    Each and every opportunity (or potential opportunity) for a brandcategory and a consumer to encounterExample of contacts:

    Mass Media exposure: TV ads, Magazine ads, Press Articles... One-to-One contacts:

    Direct Mail, Coupons...

    POS experience: In-store leaflets, gondolas... Events and Sponsorship coverage Any other contact:

    Word-Of-Mouth... Packaging... Web-Site or Internet Banners...

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    TOUCHPOINTS: TELEPHONY ADVERTISER

    D i r e

    c t ( 1 2

    )

    Helpline or call centreE-mail messageSpecial offer through my workText message or telephone call fromphone companyWelcome pack or users' manualCustomer magazine sent to me by myphone companyInternet sitesInformation received with monthly billOffer in conjunction with anothercompany (eg credit card company)Advertisements on the internetSales people in a public place (egrailway station, shopping centre, cafor gym)Mail from a phone company

    M a s s ( 1 1

    )

    Articles in newspapers andmagazinesTV advertisementsAdvertising on posters or billboardsLeaflets inserted in magazines ornewspapersNewspaper advertisementsMagazine advertisementsAdvertising on buses, trains or taxisRadio advertisementsCinema advertisementsInformation at airport or on airplaneInteractive TV commercial (when youpress the red button)

    P O S ( 5 )

    Promotional voucher or couponMagazines, leaflets, brochures inshopsRecommendation/advice from salespersonShop window displaysSpecial in-shop display

    S p on

    s or sh i p

    ( 4 )

    Sponsorship of TV programmesSponsorship of music or arts eventsSponsorship of sports events, teamsor sportsmen/sportswomenSponsorship of radio programmes

    U n

    b r an

    d e d ( 4 )

    Recommendation/advice from a friendor colleaguePrompt from family or friends to jointheir networkRecommendation/advice from myspouse or partnerRecommendation/advice from my kids

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    21THE JOINED UP MEDIA COMPANY

    TOUCHPOINTS: COFFEE ADVERTISERTV advertising

    Price reductions in newspaper

    ads

    Cinema advertising

    Advertising in newspaper,

    journals and magazines (withoutprice information)

    Billboards

    Discounts through radio

    advertising

    Radio advertising

    M

    a s s

    P

    O C

    Free cup of coffee at store

    brand-promotion-standFree coffee sample handed atworkCaf (serving coffee cups,pastries and cakes,)A specialized shop that sells

    coffee and related products(Special blends, beans,) andserves cupsBranded coffee shopsBranded coffee machine atworkBranded coffee parasols incafs

    1 / 1

    Price reductions in mailed

    leaflets

    Product tasting at work

    Smaller packages to initiate

    trial of new brand

    Posted flyers without price

    information

    Branded automatic espresso

    machine for home use

    Recommended by coffee

    machine vendor

    P O S

    Free sample trial at store when

    you buy coffee

    Store flyers with promotions

    (e.g. buy 3 for the price of 2) or

    price reduction/information

    Shelf positioning in store

    Packaging that is functional

    Special gondolas to make

    coffee promotions more visible

    Nice layout in shop window

    S p on s or sh i p

    Sponsoring of sports events

    Live ads/events sponsored by

    a coffee brand

    Brand presence at sportsevents

    Sponsoring of TV programs

    Sponsoring of cultural events

    Brand presence at cultural

    events

    I n d i r e

    c t

    Tried at a friend's house

    My family used this brand

    Recommended by a

    friend/someone who knows your

    taste

    G e n e r a

    t e d b y

    M C A u

    t o m a

    t e d

    . I n

    t e g r a

    t i o n

    i s t r a

    d e m a r k a n

    d c o p y - r

    i g h t o w n e r o

    f a

    l l M C A p r o

    d u c t s , t o

    o l s a n

    d s e r v

    i c e m a r k s

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    MCA MEASURES BRAND EXPERIENCE ...

    by measuring the degree to which consumers

    associate brands with contacts:

    Contact Brand A Brand B Brand CTV-Advertising 40% 30% 20%

    Reflects the perceived weight of the intensity andimpact of brand activities in a contact

    WHICH BRAND HAS THE MOST EFFECTIVE

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    WHICH BRAND HAS THE MOST EFFECTIVEMARKETING MIX?

    Contact Brand A Brand B Brand CTV advertising 40% 30% 20%Press articles 15% 30% 15%

    POS Displays 50% 40% 60%Direct Marketing 10% 20% 50%

    Some associations are worth more than others!

    We need to weight the brand/contact associations by a factor thatrelates to brand choice.

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    MCA MEASURES CONTACT VALUES ...

    ... as if contacts were sales - people:

    Effect CauseRational - Information value

    Emotional - Attractive value

    Behavioral - Power value

    These 3 contact values are measured: Per category

    Per market

    Independent of brands and message content

    Robust, validated questionnaire techniques

    Proprietary questionnaire

    AND MERGES THE THREE CONTACTS VALUES

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    AND MERGES THE THREE CONTACTS VALUESINTO A SINGLE INDICATOR:

    Contact Clout Factor (CCF):

    Information, Attractive and Power measured values Merged via proprietary algorithm

    Single indicator for the capacity of a contactto influence attitudes

    THIS PROVIDES A HOLISTIC VIEW OF BRAND

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    THIS PROVIDES A HOLISTIC VIEW OF BRANDEXPERIENCE

    Contact Associations CCF BEPs BEPs BEPs BEPsBrand A Brand A Brand B Brand C Category

    TV-Advertising 40% 70 2800 2100 1400

    Press articles 15% 50 750 1500 750POS Display 50% 30 1500 1200 1800

    Dir. Marketing 10% 60 600 1200 3000

    Etc.

    Total BEPs 5,650 6,000 6,950 18,600

    BES 30% 32% 38% 100%

    CCF = Contact Clout Factor:

    The capacity of a contact to influence attitudes

    BEP = Brand Experience Points:Level of brand contact associations weighted by the CCF.

    BES = Brand Experience Share:Perceived cumulative weight of all brand communication activities relative to competition.

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    MEASURES ARE VALIDATED

    Brand Experience Scores delivered by MCAcorrelate with market shares at 0.80 on

    average.

    In over 500 audits, covering 50 categories,in 25 markets and 18 languages

    AND SUPPORTED BY MAJOR MARKETING

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    AND SUPPORTED BY MAJOR MARKETINGSERVICES COMPANIES

    Global allies:PUBLICIS

    Starcom MediaVest Group,ZenithOptimedia

    OMNICOM OMD, TBWA

    DENTSUWPP

    Mediaedge:cia, MediacomHAVAS

    MPG

    Pilots:ATKearneyVideo Research Japan(syndicated MCA)

    CategoriesGlobal market leaders in:

    Grocery/Beauty/FoodAutomotiveConsumer durablesFinancial servicesTelecoms

    Markets:All continents30 languagesDeveloped & developing markets

    WHAT KIND OF ISSUES CAN THIS DATA BE USED

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    WHAT KIND OF ISSUES CAN THIS DATA BE USEDTO UNDERSTAND?

    Which contacts are critical to influence ANDdifferentiate my brand?

    How much Brand Experience are we achieving, andhow competitive is this?What are my brands strengths and vulnerabilities?

    How much return is my brand achieving per dollarinvested?

    CLIENT BRAND: HOUSEHOLD APPLIANCE RATIO

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    CLIENT BRAND: HOUSEHOLD APPLIANCE RATIOOF BUDGET/BEPS

    Budget Period: February 2003 - January 2004

    Budget % % of BEP

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100% 4%

    23%

    5%

    8%

    16%

    27%

    19%

    14%60%

    25%

    1/1

    IndirectMassPOC

    POSSponsoring

    G e n e r a

    t e d b y

    M C A u

    t o m a

    t e d

    . I n t e g r a

    t i o n

    i s t r a

    d e m a r k a n

    d c o p y - r i g

    h t o w n e r o

    f a

    l l M C A p r o

    d u c t s ,

    t o o

    l s a n

    d s e r v

    i c e m a r k s

    Sample: Total (628)

    OUR SERVICE TO RETHINKING COMMUNICATION

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    OUR SERVICE TO RETHINKING COMMUNICATIONPLANNING

    RESEARCH ACTIVATION

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    THE PROMISE OF RESEARCH ACTIVATION

    Simply, to turn research into insight and action plans

    Specifically,we work with research outputs

    To draw conclusions and observations from their research that areuseful in developing marketing communications.

    And help brands to make decisions.

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    HOW WE MAKE IT HAPPEN

    We get an overview of the research / data sources thatyou haveThen we break it up into briefings and use these asinputs to..A structured series of workshops..With a multidisciplinary team.

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    WHAT VALUE DOES RESEARCH ACTIVATION DELIVER?

    Better communications strategies and ideasStrategies for using communications more effectively

    and efficientlyIdeas for better communications.A focussed communications strategy.

    Ownership and changeTeam ownership of the thinking,the action plan andthe key metrics for measuring it.

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    WHAT ARE THE TYPICAL OUTPUTS ?

    Agreement on

    What the brand should do nowHow the brand can optimise its communications infuture

    What the brand needs to find out more aboutWhat metrics will be used to evaluate and trackprogress

    WHEN CAN RESEARCH ACTIVATION BE USEFUL?

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    WHEN CAN RESEARCH ACTIVATION BE USEFUL?

    When you want to take new research and build team

    consensus on its implicationsWhen you think the brand is under-performingWhen the brand is facing competitive entry.

    When you are in the challenger position needing toout think bigger spending competitorsWhen a part of our audience may need a different

    approachWhen launching a line-extensionAs part of annual planning

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    GOING BACK TO OUR PHILOSOPHY

    Everything is media

    How technology, lifestyle and measurement arecausing us to re-evaluate our definition of what is amedia contact

    And media is everything

    How existing and emerging media planning concepts drive consumer behaviour

    THE TRADITIONAL AIDA APPROACH

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    THE TRADITIONAL AIDA APPROACH

    Awareness

    Interest

    Desire

    Action

    IN THE NEW MEDIA ENVIRONMENT A NEW UNIVERSAL

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    FRAMEWORK FOR PLANNING IS EMERGING

    Central ProcessingLearning Hierarchy

    Dissonance Hierarchy

    Low involvement Hierarchy

    Peripheral ProcessingNudge

    Source: Sue Elms: March 2005

    RESPONSE HIERARCHIES AND THEIR STRATEGIC

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    CONSIDERATIONS

    Central Processing Happens in high involvement situations where brands are

    considered different Role of advertising is significant in the marketing mix Consumers engage with advertising learn rational info

    very quickly, sensitive to placement, mood for emotional

    connectionsTypically advertising dominated communicationwhich is continuous, medium frequency,with premium

    placement and multiple copy

    RESPONSE HIERARCHIES AND THEIR STRATEGIC

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    CONSIDERATIONS

    Dissonance Happens when there is high involvement, but alternative

    brands are not seen as different Consumers sometimes experience the brand through means

    other than media brand advertising which leads toreappraisal and a move towards central processing

    Typically burst advertising tying in with promotional/ sampling activity

    HUNGARY EXPERIENTIAL MARKETING

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    HUNGARY: EXPERIENTIAL MARKETINGHUNGARY: EXPERIENTIAL MARKETING

    RESPONSE HIERARCHIES AND THEIR STRATEGIC

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    CONSIDERATIONS

    Peripheral processing Happens in low involvement categories where brands are

    not considered different Advertising is acting as a weak force..its as likely behaviour

    precedes attitude as the other way around

    Typically campaigns use repetition,consistency and

    cues should be used to get consumers to learnbrands by mnemonics rather than advertising

    118 118

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    118 118

    ADVERTISED ALL THE TIME, EVERYWHERE, TO REINFORCE NEW DIRECTORYASSISTANCE NUMBER. LOTS OF CUES ON WINNING AND GETTING THERE

    FAST, NO ATTEMPT TO GET CONSUMERS TO PROCESS AN ARGUMENT

    RESPONSE HIERARCHIES AND THEIR STRATEGICCONSIDERATIONS

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    CONSIDERATIONS

    Nudge Happens in very low involvement situations where brands are

    not considered different Role of advertising is secondary to other marketing levers and

    its role is to nudge action Consumers not motivated to process message so all you have

    to is avoid negative connotationsTypically, campaigns concentrate on just being thereas cost effectively as possible, driving a cue (but make

    sure cue is not an auto pilot to ignore). Cues work beston brand users. Increasing penetration may require anon-advertising route

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    IN SUMMARY

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    IN SUMMARY..

    Advances in technology and growth are allowingfor measurability of total consumer connectivenessMeasurement and accountability will unlock the potential ofthis most motivating of marketing philosophiesIt will create challenges for advertisers in terms of how theyorganise, approve and set budgetsIt will create challenges for agencies as functional specialism

    will have to be combined with a multi-functional perspective.This affects resourcing, organisational models and rewardmechanisms