Old Media Versus Amvc Media

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Old Media Versus Amvc Media

  1. PREDATOR DIGITAL [email_address]
  2. <ul><li>Auction-Mediated media buying is the new way of buying advertising. </li></ul><ul><li>It is fundamentally different and more complex than old-media buying in many ways. </li></ul><ul><li>It is now confined to advertising that appears on the World Wide Web, but will gradually extend to other media like TV and Radio. </li></ul>PREDATOR DIGITAL [email_address]
  3. <ul><li>OLD MEDIA </li></ul><ul><li>What is bought are units of Exposure, also called OTS </li></ul><ul><li>A newspaper advertiser sells ads based on how many people theoretically would have the opportunity to see the message. </li></ul><ul><li>What is bought is units of consumer response. </li></ul><ul><li>A response could be consumer action that results in perceived value to the marketer. It could be a visit, a lead, or even a sale. </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  4. <ul><li>Costs are typically fixed. </li></ul><ul><li>The advertiser needs to commit to a fixed spend, usually large, and guarantee that spend, and cannot change his mind once the deal is signed. </li></ul><ul><li>Costs are typically variable </li></ul><ul><li>The advertiser does not need to commit to a fixed spend. Spend can be scaled up or down based on results. </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  5. <ul><li>Buying is a human-mediated process </li></ul><ul><li>A media sales rep meets with the media agency who buys media for the client, and a deal is struck. The bigger the spend and quicker the decision, the better the deal. </li></ul><ul><li>Buying is an machine-mediated process done on a computer browser </li></ul><ul><li>The advertiser “competes” with other advertisers for the consumer’s response that is being auctioned by the media owner </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  6. <ul><li>Buying power is very important to getting good deals. The sole metric to evaluate a buy is gross cost. </li></ul><ul><li>Hence the consolidation of buys in the form of companies like Group M, which call themselves “Media Investment Management companies”. </li></ul><ul><li>Buying power is irrelevant. </li></ul><ul><li>More important are consultative skillsets to define what the advertiser wants and be able to measure these. </li></ul><ul><li>Thereafter, it is intelligent buying, creative and continual optimization that counts. </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  7. <ul><li>Consumers are targeted by the content the consume. </li></ul><ul><li>Consumers can be targeted by their intent. </li></ul><ul><li>Consumers can also be targeted based on their previous behavior </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  8. <ul><li>Creative Quality and Media Cost payouts are not correlated </li></ul><ul><li>Whether the creative is good or bad has no impact on the media cost paid to the media owner. </li></ul><ul><li>Creative Quality is inversely related to Media Cost </li></ul><ul><li>The more creative the advertiser in eliciting consumer response, the less money paid per unit of response to the media owner. </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  9. <ul><li>Creative is judged by the “experts” – ex. Cannes </li></ul><ul><li>There is no standard or unifying metric for what is considered to be creative. A general rule in old media buying is intrusion. </li></ul><ul><li>Creative is adjudicated by the “crowds”, that is the consumers themselves. </li></ul><ul><li>One standard metric for assessing creativity is the Click through Rate or Clicks divided by impressions served. The rule for new media is relevance. </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  10. <ul><li>Metrics, if available are expensive to get. </li></ul><ul><li>Metrics, if available are time delayed, </li></ul><ul><li>They are the result of a sampling process </li></ul><ul><li>Metrics are in general fuzzy </li></ul><ul><li>Metrics are visible in real time on a web-interface </li></ul><ul><li>Metrics are captured easily and cheaply, and can be as granular as the advertiser wishes to get </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  11. <ul><li>Metrics are typically nominal or non-numeric in nature. </li></ul><ul><li>If a survey asks a respondent if they recall Brand X more often, the answer can be Yes or No. Such a value is called a nominal variable </li></ul><ul><li>Nominal variables are the lowest form of data and lend themselves to minimal analysis. </li></ul><ul><li>Metrics are typically Ratio Scaled. </li></ul><ul><li>A boy whose weight is 100 cm is twice as tall as a boy whose height is 50 cms. Height, weight , Length are all Ratio Scaled. </li></ul><ul><li>Ratio scaled variables lend themselves to sophisticated statistical analysis </li></ul><ul><li>OLD MEDIA </li></ul><ul><li>AMVC MEDIA </li></ul>PREDATOR DIGITAL [email_address]
  12. <ul><li>What business objectives are you (the client) responsible for? </li></ul><ul><li>What consumer actions are valuable to you as a marketer given your above business objectives? </li></ul><ul><li>What are your historical attempts at buying such units of consumer response? </li></ul>PREDATOR DIGITAL [email_address]
  13. PREDATOR DIGITAL [email_address]

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