Redbox Case Book


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Redbox Case Book

  1. 1. we arewhere you are
  2. 2. TABLE OF CONTENTS Situation Analysis 4 Campaign Objectives & Strategies 10 Media Objectives & Strategies 14 A strategic interactive media plan for Online Advertising 20 Streaming Video & Audio 26 Search Engine Marketing 30 Search Engine Optimization 36 Mobile Advertising & Promotions 40 Location-Based Advertising & Promotions 42 Samantha Ganz Mobile Application 44 Kassie McLaughlin Social Media 46 Digital Out-of-Home 50 Campaign Summary 522
  3. 3. SITUATION ANALYSIS Brand Review Industry Review The DVD rental industry presents consumers with many options of how and where to rent movies. Individuals In July 2010, BusinessWeek named Redbox the fastest growing U.S. video retailer.5 The company began in 2002 under can rent DVDs in-store, at rental vending machines, stream video online, buy directly through their cable McDonald’s ownership and officially entered the marketplace in 2004 with more than 100 self-service vending kiosks provider or receive DVDs by mail. for DVD rentals. Now, 26,000 Redbox kiosks exist nationwide in grocery stores, convenience stores, gas stations, pharmacies and some popular national landmarks. The company’s key retail partners include: These many options allow consumers to tailor their DVD rental experience to their exact preferences, focusing on whichever element is most important to them, whether it is price, convenience, method of payment, etc. • Walmart In 2009, DVD vending companies represented 19 percent of the DVD rental market, while rent-by-mail held • Walgreens 36 percent and traditional movie rental stores claimed 45 percent.1 • McDonald’s • Leading Grocery Stores such as Kroger and Albertsons With the overall economic struggles of the past few years, research shows people prefer to rent DVDs rather • Leading Convenience Stores such as 7-Eleven and Circle K than purchasing them. In 2009, DVD rental revenue increased 4 percent while sales dropped 13 percent.2 At each self-service vending kiosk, the Redbox interactive touch screen allows consumers to browse more than 600 In the DVD rental industry, Redbox is a convenient and inexpensive option for consumers. Redbox began DVDs, spanning 70 to 200 titles.6 Customers can rent DVDs for one dollar plus tax per night with a credit or debit card. 2010 with 23 percent of the U.S. home video rental market, and increased by 7 percent to reach 30 percent at the end of the year.3,4 The Redbox website and iPhone app each offer consumers the opportunity to reserve their movie ahead of time and pick it up at their kiosk of choice. Redbox emphasizes their product’s convenience with a “rent-and-return” policy that allows DVD renters to return their DVD to any kiosk, regardless of where they rented. Every Tuesday the newest releases are stocked in Redbox vending machines, yet the most popular night for rentals is Friday when Redbox processes about 80 transactions per second.1 More than one billion movies have been rented out of Redbox kiosks and the company continues to grow.64
  4. 4. SITUATION ANALYSIS Redbox is America’s destination for movies Competitive Review Current Consumer DVD Rental Vending Companies and Kiosks: Blockbuster Express Mary Jones, a fourth grade teacher, and her husband, Tom, juggle a busy Redbox Strengths weekly schedule between work and their two teenage children. Four • As of 2010, Redbox had 26,000 kiosks compared to Blockbuster Express’ 10,000 years ago, Tom was laid off from his job as an IT technician for a large corporation. Now, he works to make ends meet by freelancing as an IT • Blockbuster Express is a new service released in the last 2 years; Redbox has been serving specialist. With a significantly reduced household income, the Jones’ closely consumers since 2002 limit their recreational spending. Most challenging is coming up with ways Redbox Weaknesses to entertain their children, since they previously frequented movie theaters • Blockbuster has strong brand recognition as a leading movie rental service and theme parks, and often took adventurous family outings. Now they • Blockbuster Express has a connection to Blockbuster stores, for more rental options enjoy low-key Friday nights at home, playing board games and renting a movie as a family. Online Streaming: Hulu, Netflix, iTunes, Apple TV, Google TV Demographics Redbox Strengths • Consumer does not have to have access to Internet or broadband connection • Low income household of $10-45K7,8 • No commercials (compared to Hulu) • Large, teen-dominated families9 • Relatively cheaper • Heads of households most likely to be between the ages of 30 and 49 • iTunes rentals are $3.99 for 24 hour access to new releases • Netflix costs at least $8-10 a month11 Attitudes Redbox Weaknesses • Prefers to spend a quiet evening at home • Consumer can access movies directly through their computer or television without • Often sits down to a meal together at home9 having to visit a kiosk • Values self as strongly family-centered • Consumers may already use online streaming services to access TV shows and music and will not want to use an additional service for movies Behaviors Rent-By-Mail: Netflix, Blockbuster • Rents films between 4 and 9 p.m.10 Redbox’s Strengths • Stopped buying and renting DVDs in the last three years because it was too much expensive or too much hassle7 • Consumer can have the DVD as soon as they go to a Redbox, they do not have to wait 2-4 • Uses the Internet to shop for products and get information9 days for it to arrive in the mail Redbox’s Weaknesses • Consumer does not have to leave their home to access DVD • Rent-by-mail has a larger selection of older titles than Redbox6
  5. 5. SITUATION ANALYSIS Competitive Review Direct from Cable Provider: On Demand, DIRECTV Strengths Weaknesses Redbox’s Strengths Affordable • Does not receive the newest DVD releases • Less expensive: Redbox DVDs are $1 per night compared to $4-6 a cable provider charges for a 24 hour rental • $1 per night and no late fees until 28 days after they arrive in retail stores • Consumer has a physical copy of the DVD to watch in any DVD player or computer, compared to a DVD • No subscription necessary • Requires payment by credit or debit card Convenient • Videos cannot be streamed online or rented from a cable provider which must be watched on the television it is rented on • Kiosks located nationwide in highly frequented accessed through current cable provider, Redbox’s Weaknesses venues such as Walgreens, McDonalds and instead users must visit a Redbox kiosk CVS • Consumers do not need to leave their home to rent a DVD • Limited amount of DVDs in each kiosk • Rent-and-Return anywhere policy allows • Consumers do not need to use a credit card, as on-demand purchases are directly added onto their cable bill customers to return DVDs to any Redbox kiosk, regardless of where they were rented << S.W.O.T. • Consumers can reserve a DVD online or via Rental Stores: Blockbuster, Hollywood Video, Family Video mobile for pickup at kiosk Redbox’s Strengths Interactive • Active presence and strong following on social • No membership required media sites such as Facebook and Twitter8 • Consumer does not have to go out of their way to visit a rental store; kiosks are located at grocery stores, convenience • Strong cohesiveness throughout email, mobile, stores and pharmacies social media and website marketing8 • Kiosks only have hit movies and a limited number of titles, Opportunities Threats making it easier for individuals to find what they are looking for12 • No late fees: all DVD rentals are $1 per night • Create loyal customer rewards program • Delay of access to new releases could hinder Redbox’s Weaknesses • Tap into Hispanic market spontaneous purchasing at kiosks • Rental stores have new releases 28 days before kiosks • Leverage Hispanic use of mobile by increasing • Movie companies could drive up licensing • Can return DVDs until midnight at most rental stores as Redbox application’s features fees, which could force Redbox to charge compared to 9 p.m. at Redbox • Position Redbox as an inexpensive, family- more per rental • Stores carry older films and videos in niche categories oriented source of entertainment • Rise of other competitive DVD and streaming services8
  6. 6. CAMPAIGN OBJECTIVES & STRATEGIES Key Opportunties Strategic Value Consumer • Connecting with Hispanic non-users where they participate online and on mobile devices Demographics9 • Expand mobile application’s features to increase competitive advantage • Hispanic • Create customer rewards program to sustain brand loyalty • Household income of $0-30K • Heads of household between ages 18 and 34 Business Objective • Has children under 10 years old Increase Redbox DVD rental sales by 3 percent • Primarily resides in mid to large cities in the South and West13, 14 • Highest level of education obtained is a high school diploma or some college experience15 Strategic Value Consumer Jose and Gabriella Martinez each work 60-hour weeks to provide for their household, which currently includes their two young children as well as Gabriella’s parents and brother. They value their time Attitudes together and eat a large traditional Hispanic meal every Sunday. With a mixed-generational family, • Does not have a strong language preference, but speaks both English and Spanish both English and Spanish are spoken in the Martinez home. Gabriella is the primary household shopper, and always takes advantage of special offers. Jose considers himself the man of the house and gets • Often sits down to a meal together at home with family information from the Internet to make decisions for the household. With a low household income, it is • Strongly agrees that the Internet significantly changes how they get information and difficult to entertain the whole family outside of the home. The Martinez’s instead find inexpensive ways shop for products to pass time together at home. Most recently this includes arts and crafts with the kids and watching a • Strongly agrees with the statement, “I often buy on spur of the moment” movie as a family. • Does not enjoy shopping with their children • Describe themselves as a careful money managers Why this SVC? • Hispanics fit into Redbox’s current target of low-income families, yet spend their time on and offline Behaviors in different places than where Redbox currently focuses their advertising. Marketing to Hispanics 16 directly will tap into a relevant new target. • Always looks out for special offers when shopping • Our strategic value customer is based on research that shows that Hispanic families are on a budget, • Uses high-speed Internet as a primary source of information looking for family entertainment and are likely to purchase a good after reading about it online.9. 17 • Visits video sharing websites such as YouTube frequently16 • Targeting Hispanics in the areas where they are most active on and offline will expand Redbox’s • Uses a mobile phone regularly current market to non-users that once reached are likely to be avid consumers.16 • Researching products online often leads to an in-store purchase • Research showed that our SVC is not influenced by their children when it comes to purchasing • Frequently visits Myspace, Yahoo, Twitter, Photobucket and Myspace16 decisions.9 Therefore, although we are emphasizing Redbox as a family-centered purchase, we are primarily targeting heads-of-households because they are the decision makers.10
  7. 7. CAMPAIGN OBJECTIVES & STRATEGIES Saving money and convenience are the top priorities for Hispanic shoppers: our promotion strategy heavily promotes Redbox’s affordability and proximity to the user.18 Marketing Objectives • Get Hispanic non-users to rent 5 movies over the year-long campaign Rationale • Get 10% of Hispanics to consider Redbox as their preferred form of DVD rental Our campaign will show Hispanics the value and convenience of renting a DVD with Redbox. The objectives are based off the fact that Redbox is not currently directly targeting Hispanics. We are reaching out to Hispanics to initially generate brand Marketing Strategies awareness, and then change DVD rental behaviors to purchase 5 DVDs over the course of our year-long campaign. PRICE Maintain extremely affordable movie rental service Our strategies highlight Redbox as a family-centered brand based off the insight that Hispanics strongly value their family PACKAGING Change Redbox infrastructure to highlight family-centered nature and are likely to live with multiple family members in one household. POSITION Reposition Redbox as a form of family entertainment that aligns with Hispanic culture Our strategies emphasize targeting Hispanics in specific ways that reach them on a direct, personal level because research PROMOTE Redbox’s affordable form of family entertainment shows they spend their time on and offline in different places than non-Hispanics.18 PLACEMENT Place Redbox in areas on and offline that are highly frequented by Hispanic families Our pricing strategy is the right choice for our client because it is based off the insight that large families on a budget are already more likely than the average population to use Redbox.12 Advertising Objectives The advertising strategies launch in October, as the weather gets colder and heads-of-households need to find ways to • Generate awareness level of 25 percent among Hispanic non-users entertain their children indoors. • Increase brand engagement of Hispanic users online, as measured by interactions with Redbox’s integrated media strategy Our advertising strategies include using spokesperson Sofia Vergara because she is • Convince Hispanic non-users that Redbox provides family entertainment for the best value a popular Hispanic who is close to the SVC in age. Vergara is highly regarded in the Hispanic community, as she will be honored by the National Hispanic Media Coalition for her Outstanding Performance in a Television Comedy Series on February 25. 19 Advertising Strategies • Develop an integrated interactive and traditional media plan with a launch in late October • Get 500 Hispanic users to sign up for Redbox’s customer loyalty rewards program • Develop a “Hispanic Film Festival” week for two weeks in September and October for Hispanic Heritage Month, to attract Hispanic attention • Showcase Sofia Vergara, our new spokesperson, in all creative • Implement online personality for Redbox on websites frequented by Hispanic heads-of-households12
  8. 8. MEDIA OBJECTIVES & STRATEGIES Seasonality Geography 13,14 • Launch in first week of September to celebrate Redbox’s Hispanic outreach just before Hispanic Heritage month begins on September 15 California • Los Angeles • Continue promotions throughout October switching focus toward horror/thriller movies, which research shows • San Francisco Hispanics have the highest audience share in.19 By showcasing a special selection of horror/thriller films, we hope to • San Jose elicit attention from the Hispanic community and retain them as loyal customers. • Sacramento • Heightened advertising efforts will continue in mid-November through December, when Hispanic shoppers Texas are preparing large family meals for the holidays. During this time, research shows Hispanic shoppers are more • Houston concerned with family satisfaction, which directly aligns with Redbox’s family-centered objectives and strategies.18 • Dallas Internet and out-of-home will drive consumers to rent a Redbox DVD when they come across one when they are • Austin running errands and buying groceries. • San Antonio • To start of the new year, Redbox will launch its new Customer Loyalty Rewards Program. In the season of resolutions, Florida Redbox wants to reward its loyal customers for choosing affordable family entertainment all year round. • Miami • Ft. Lauderdale • Next, we will feature “Rain Checks” for free rentals in April. This program would provide loyal consumers with a free DVD rental to save for a rainy day. New Mexico • Albuquerque • Our advertising will end with a bang during late July to early August. We will feature “Escape the Heat” specials that provide incentives for our SVC to get out of the high temperatures of the Western and Southern summers and stay Arizona cool inside watching a DVD as a family. • Phoenix Rationale: Redbox will target these key 12 cities throughout the campaign because they have strong Hispanic markets and overall Hispanic population. Additionally, Redbox kiosks are most likely to be readily available in locations throughout urban areas and September October January April July their surrounding suburbs. 2011 2012 Launch Halloween Introduce Rewards Program Rain Checks Escape the Heat Hispanic Heritage Month Thriller Push and Redbox Deluxe App Promotion Specials14
  9. 9. MEDIA OBJECTIVES & STRATEGIES we Timing Weeks within the Month Creative Brief Advertising will not vary by week except in the following instances: • Launch in first week of September Role of Advertising are • Sustain heavy advertising throughout October The advertising creative must generate awareness that Redbox • Increased advertising in the first week in January will generate attention for the launch of the Redbox is family-focused, and convince Hispanic heads-of-households Rewards Program and the Redbox Deluxe Mobile Application. that Redbox is the most affordable, convenient and enjoyable • Third week in July will start “Escape the Heat” promotions home entertainment for the whole family. Days within the Week Creative Big Idea: “We are where you are” where • Redbox will emphasize Internet advertising Monday through Friday because our SVC is highly likely to be on • Emphasize convenience the Internet at work as well as at home on these days.9 • Promote affordability • The most Redbox rentals occur on Friday nights, and new releases are stocked on Tuesdays.6 Therefore we will target customers during the week to remind them of new releases and steer them toward Redbox for • Center on family values their weekend movie night rentals. • Redbox will push special family-focused advertising on Saturdays as a form of family entertainment. Key Message you Redbox is the DVD rental service that recognizes and best aligns Hours within the Day9 with Hispanics’ lifestyle, helping them achieve family moments • Our SVC is most likely to use the Internet between 9 a.m. and 4 p.m. both at work and at home and togetherness that they highly value. • During the week, our SVC is highly likely to be on the Internet at home between 7 and 11 p.m. On weekends, Tone Internet use is high throughout the day at home, from 9 a.m. to 7 p.m. • Our target is also likely to be on the Internet from 6 to 7 a.m. but Internet activity during those hours rarely Happy, uplifting, joyful, family-focused, togetherness, loving, leads to a purchasing decision. Therefore, we plan to push our online advertising heavily throughout the affectionate, caring, memorable are workday from 9 a.m. to 4 p.m. This coincides well with current Redbox transaction trends that show most DVDs are rented between 4 and 9 p.m.10 Manner • Our SVC is likely to be “on the go” or shopping from 4 to 7 p.m., so we will increase out-of-home and mobile Ads depict happy families enjoying their time together, bright advertising during these hours. colors, light-hearted background music, people smiling and laughing Staying Competitive • Netflix has strong “gifting” campaigns during the Holiday Season. Redbox should be actively promoting their DVD rental service during this time as well, given that this is a time where families generally spend a lot of time together. During this time, we will emphasize the convenience and affordable value of Redbox’s rental service and the brand’s family-centered values. • Additionally, we will offer loyal customers chances to get free DVD rentals and new consumers a chance to get cheaper rates on rentals, as it is the Season of Giving.16
  10. 10. MEDIA OBJECTIVES & STRATEGIES Flowchart Budget Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Total Online Advertising $14,117,724 $12,560,454 $12,075,246 $14,516,298 $20,578,218 $11,994,948 $11,994,948 $18,319,374 $11,994,948 $11,994,948 $15,561,558 $13,071,714 $168,780,378 Online Advertising Streaming Audio: $690,887 $690,887 $544,336 $544,336 $2,470,446 Pandora Streaming Audio: Search Engine Marketing/ Landing Pages $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000 Pandora Search Engine $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000 Optimization Search Engine Marketing Mobile Advertising $1,200,000 $1,200,000 Location Based Free Free Free Free Free Free Free Free Free Free Free Free Free Promotion Landing Pages Mobile App $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $100,000 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000 Search Engine Facebook, Non Paid Optimization Twitter, Non Paid $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000 $1,950 $1,950 $1,950 $1,950 $1,950 $9,750 Mobile Advertising Facebook, Paid Twitter, Paid $60,000 $60,000 $60,000 $60,000 $60,000 $300,000 Mobile Promotion Digital Out of Home $3,600,000 $3,600,000 $7,200,000 TOTAL Media Budget $18,995,174 $16,928,791 $12,090,746 $14,531,798 $21,359,055 $12,022,948 $12,022,948 $18,953,660 $12,022,948 $12,022,948 $16,195,844 $13,099,714 $180,246,574 Location Based Advertising Location Based Promotion 1% 4% 1% Mobile App Facebook, Non Paid 0% 0% Twitter, Non Paid Facebook, Paid Twitter, Paid Digital Out of Home 94%18
  11. 11. ONLINE ADVERTISING Data Analysis: Simmons Choices 3 Data Analysis: Quantcast Quantcast December (2010) - COMPOSITION Quantcast December (2010) - Simmons Choices 3 (2008) - REACH Simmons Choices 3 (2008) - COMPOSITION Top Advertised Websites, Amongst (Target) REACH Top Websites Visited in Last 30 Days, Amongst Top Websites Visited in Last 30 Days, Amongst Rank Website Name Composition % Comp. Index Top Advertised Websites, Amongst (Target) (Target) 1 11 8024 (Target) Rank Website Reach Index Rank Website Name Reach 2 mercadolibre. 6 4068 Rank Website Name Reach % Name 1 11.4574 1 95 1 25.7075 62.75 2 11.32 3 6 4029 2 84 2 21.9075 82.5 3 10.8325 4 6 4003 3 71 3 17.42 128.25 4 9.61 5 5 3506 4 63 4 14.48 96.25 5 9.435 6 5 3276 5 56 5 14.395 59 6 9.3575 7 5 3190 6 53 6 11.885 67.75 7 9.2825 8 4 2894 7 43 7 10.625 88 8 8.9575 9 4 2825 8 40 8 9.5925 56.5 9 8.8525 10 3 2454 9 40 9 9.2575 94.25 10 8.685 11 3 2390 10 34 10 9.0725 86.25 11 8.6375 11 7.9175 75.75 12 3 2236 11 32 12 8.0625 12 7.775 89.75 13 3 2214 12 31 13 7.7725 13 7.7675 185.5 14 3 90.5 13 28 14 7.725 14 6.855 90.5 15 3 2104 14 27 15 7.6075 15 6.0675 76.25 15 27 Quantcast Data Analysis: Simmons Data Analysis: Within the Quantcast media planner, we defined our SVC as Hispanics, ages 18-34, with a household income of $0- We used Simmons Data to find the top websites for Hispanics ages 18-34, with low household incomes, who have 30K, and has children ages 0-17. Within these parameters, the above sites are most visited by our target market. Of rented a DVD in the past year and have children. Using Simmons data, we found the top sites for our target market these sites, YouTube, Google, Yahoo, MSN, Ask and Myspace will best reach a large portion of our SVC. Additionally, are Google sites, Yahoo, Myspace, YouTube and Mapquest. Though those five sites are the highest for our SVC by the top sites for our SVC by composition are all sites in Spanish. Of those listed, we suggest only advertising on Univision. reach, we suggest only buying advertisements in the top four. Mapquest ultimately did not appeal to us because of Univision is the only site that appears in the top ten web properties among Hispanic users that prefer Spanish that conflicting research on how well it would reach our target audience. Other sites that stand out to us in this segment differs from those who prefer English.1 Univision will help to reach a portion of our target market that English sites may are eBay, MSN, Amazon and Ask; research from Ad Age’s Hispanic Fact Pack confirmed that these are strong ways to miss. Our research also shows that our SVC is bi-cultural, feeling equally comfortable speaking Spanish and English.1 reach our SVC. Research looking only at sites’ user composition found YouTube, Yahoo, Myspace and MSN in the top Therefore, it is not necessary to reach our SVC only through Spanish sites; research showed Spanish sites to have no 15 websites. Given this overlap with total reach of our target market, we believe these are sites that would be most increased value over English sites.1,20 We do not suggest advertising on more of these Spanish sites because of low beneficial for our advertisements. reach and that the language is not particularly important to our SVC.20
  12. 12. ONLINE ADVERTISING Other sites our SVC is likely to visit The Role of Online Advertising Based on TV networks with highest Hispanic viewership1 Top 10 Web properties among Hispanic users1 Online advertising plays a huge role in the marketing mix to reach Redbox’s target consumer. Hispanics are extremely • Telemundo • Fox Interactive Media active online and we want to advertise where their attention is.22 Hispanics research information online about • Fox • EBay products before purchasing them; 61 percent of Hispanics made a purchase in-store after seeing online ads while • TeleFutura • Apple researching products.17,22 Brands cannot target Hispanics simply by having a presence online. Instead, they must make • ABC • Facebook digital marketing efforts that are culturally relevant and engage in • CBS • Amazon conversations with them online.21 • NBC • CW Hispanic Social Networking Site Usage1 Social media and search will also play significant roles in our • MyNetworkTV • Tagged marketing mix. Hispanic consumers spend a significant amount • Azteca America • Facebook of time online. Of this time spent online, 39 percent is devoted to social networking.21 Our online advertising will strongly focus on social networking sites to These are other websites to reach our target market that are not listed in Simmons or Quantcast data. The first list includes actively engage in areas where our SVC is spending an abundance television websites with the highest network viewership of Hispanics overall1. Because Hispanics are avid viewers of these of time. Social networking sites offer the vital opportunity for Redbox different TV networks, we believe they are also likely to visit their websites to explore schedules and get more information to engage with our SVC directly and form authentic relationships about their favorite shows. The next set includes sites that Hispanics overall visit the most. with them, something the demographic strongly values.21 As supported in above and in previous sections, eBay and Amazon consistently appear as high reach sites and high Search is also very important when marketing Redbox to our target composition for our specific demographic targets. This is why we suggest advertising on these sites in particular. Tagged audience because the site with the overall highest reach and and Facebook are top social networking sites in the Hispanic community. We suggest advertising on both social networks composition for our SVC is Google. The Google Hispanic Marketing because of the different nature of each site. Facebook emphasizes keeping in touch with people you already know, Forum found that 93 percent of US Hispanics use Google as their whereas Tagged is used for meeting new people. Through our research, we have found that Latino culture emphasizes primary search engine17. family, friends and the group over the individual. As a demographic, Hispanics are high users of social media because networking sites allow them to tap into these core values and satisfy their desire for community.21 53 percent of Hispanics use search engines to gather information on products/shopping.22 Using paid and organic search marketing methods, we can proactively guarantee Redbox will appear where Hispanics are searching online and help lead them to purchase.22
  13. 13. ONLINE ADVERTISING 60% of Hispanic audiences view digital marketing campaigns as worthwhile, compared to 42% of non-Hispanics31 Online Banner Ads Demographic Targeting • Hispanics are significantly more receptive to an online banner ad that is automatically tailored to their interests than We are targeting our advertisements to be placed on websites that have a high reach to individuals in our SVC with the following characteristics: non-Hispanics23 • We will target our rich media banner ads specifically to Hispanic attitudes and values like family, togetherness and • Hispanic enjoyment. • Ages 18-34 • Household income <$30,000 Social Networking Sites & Online Video • Has children Hispanics are social media shoppers22 Geographic Targeting • 64% of Hispanics visit video sharing websites We will target our SVC by the top cities we found to • 94% of US Hispanics who watch online video visit YouTube have the strongest Hispanic markets: • 41% of Hispanics watching video leads to a purchase online • Los Angeles, CA • San Francisco, CA Mobile Ads • San Jose, CA • Sacramento, CA Mobile will play a large role in Redbox’s marketing mix because an overwhelming percentage of Hispanic consumers • Houston, TX actively use mobile devices for researching future purchases.22 • Dallas, TX • Hispanics are 32% more likely to have a smart phone than the general population • Austin, TX • 93% of US Hispanics use a mobile phone regularly • San Antonio, TX • 78% of Hispanics have used a mobile search engine to research something seen on TV • Miami, FL • Hispanics are more receptive to mobile coupons and shopping offers than non-Hispanics23 • Ft. Lauderdale, FL • Albuquerque, NM Timing • Phoenix, AZ • Our digital advertising efforts will maintain consistent throughout the year because our SVC is constantly online. Behavioral Targeting • In the months where we have heavier pushes towards Redbox, there will be an increased amount of advertising. We will also target our online ads based on the behaviors of our SVC. Our research shows that Hispanics are These months are September, for the campaign’s launch, October for our Halloween Thriller Special, January for extremely active online. Hispanics research information on possible purchases online before they buy them and the commencement of the Redbox Rewards Program, April for our rainy day special and July for our “Escape the 61 percent of Hispanics make a purchase in-store after seeing online ads while researching products.17 Heat” push. This consumer behavior directly aligns with renting from Redbox. We want to reach our consumers online where they research purchases knowing that they are highly likely to follow through with an in-store purchase. Therefore, our online ads will appear on popular search engines like Yahoo, MSN and Google that our SVC frequently uses to research purchases (from top 10 sites we chose based on Simmons and Quantcast).24
  14. 14. ONLINE ADVERTISING Family Focused Banner Ad Online Sites • Our main online ad concept focuses on our Based on overall research and data, we suggest placing advertisements on: overall creative idea: family entertainment. • YouTube • The ad shows a mother and child shopping in a • Yahoo grocery store, then introduces our slogan, “We • MySpace Are Where You Are” • eBay • Then Redbox’s convenience is carried through • MSN showing the mother renting a DVD right outside • Amazon the store she was already shopping at. • Google (Display Network) • Finally, the ad closes on a Hispanic family enjoy- • Ask ing a movie together at home. • Tagged • This simple flash ad positions Redbox as a great • Univision convenient option for family entertainment. We suggest the top ten sites above because they represent a thorough mix of high reach sites as well as high site composition for our SVC, as demonstrated by the Simmons and Quantcast data above. We also suggest Tagged Redbox Deluxe Banner Ad because of additional market research on Hispanic social networking behavior. • Another online ad promotes the newly devel- oped Redbox Deluxe Mobile App. • The ad states different uses of the mobile app such as quickly reserving DVDs and managing Online Advertising Cost Analysis rewards points. • It goes on to emphasize the new interactive • Online advertising media buy based off the given suggestions would cost a total of: $136,229,748 gaming features of the mobile app that allow • With additional purchase of advertising on Pandora, the total Online advertising cost are $138,700,194 customers to play trivia games while they watch. • Finally the ad shows a visual of the mobile app’s simple, easy-to-navigate display. • This online banner ad is key to our campaign integration. By promoting the mobile app online where our SVC spends a lot of time researching products and participating in social media, we will drive consumers to download the app. This will in turn encourage customers to rent more DVDs in order to use the mobile app effectively.26
  15. 15. STREAMING VIDEO & AUDIO Suggested Pandora Ad Formats Streaming Video on Hulu Banner Display Ads Hulu is an attractive opportunity for advertising online. • Formats: 300 x 250, 160 x 600 • Our SVC’s age group aligns with the Hulu’s highest group of audience: ages 18-3424 • We suggest that Redbox try banner display ads because Hispanics are highly receptive to online banner ads4. • Hulu’s demographic is made up of a less affluent audience, like our SVC24 Audio and Companion Display Ad • Offers a variety of rich media advertising options, which our SVC is highly receptive to23 • Hispanics are more receptive than the average population to all digital advertising, as long as it is targeted to them. In this case, we would suggest Redbox place audio and companion display ads with Pandora.22,23 Role of Hulu in our total online advertising plan • While Hulu would be an effective way to reach our target audience, we advise against Redbox advertising there because iPhone Banner Display Ad of the conflicting nature of the sites’ content. Hulu and Redbox are direct competitors for user’s attention: both companies • Redbox should place iPhone Banner Display ads with Pandora because Hispanics are very active on their mobile want viewers to use their service to be entertained via movies. devices and are more likely than the average population to have a smart phone. Additionally, these ads can be • Redbox commercials will promote movie-watching behavior, but it is too simple for a Hulu user to stay on Hulu’s site and just targeted by age, gender and location, which can benefit Redbox’s advertising efforts.22,23 watch a movie there, instead of renting a DVD through Redbox. • Hulu allows advertisers to integrate content into the ad buy, going way beyond a simple banner unit. Pandora’s Competitive Edge in Advertising • These formats are great for click through rates and message recall, but would all together not motivate users to use Redbox instead of continuing to watch content on Hulu. • Pandora ads will be less invasive than other online media ads. The consumer is already listening to Pandora so the advertiser has their attention without having to fight for it. • Consumers are more receptive to advertising messages because they choose to use Streaming Audio on Pandora the site, knowing that they will be served advertisements in exchange for free access to Pandora’s radio stations. Rationale for buying • Pandora has been found to have a high impact on urban and ethnic audiences, • 64 percent of Pandora are between ages 18 and 3425. Also, 31 percent of Pandora’s which is beneficial to our client because we are trying to attract a Hispanic audience users have an average household income of less than 35K25. Although only 12 percent of to Redbox. Pandora’s current users are Hispanic, they have a high index number of 143, which suggests • The interactive nature of content and advertising on Pandora’s platform increases consumer satisfaction with advertising2 that Hispanics are more likely to use Pandora than the average consumer26. Therefore • Advertisements on Pandora are not cluttered by a huge amount of other advertisements supporting our advice to advertise with Pandora. or information. This allows an advertisement’s message to stand out and have high • According to lecture, demand for online radio is expected to grow. Also, total web hours impact.2 Additionally, listeners cannot opt out of ads or fast-forward them, so they are spent on Pandora are growing1. more likely to listen to them in their entirety to get to the next song. • More than half of all Pandora usage comes from mobile1. This is a significant fact for our SVC because Hispanics are extremely active on mobile devices and would enjoy using Total Cost: Advertising on Pandora audio streaming on their mobile phones22. Reach/Month CPM Reach/1000 October January April July Total Banner Display Ads 20935982 $7 20,935.98 $146,551.87 $146,551.87 $293,103.75 Audio & Display 20935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.06 iPhone Mobile Display 20935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.06 Total $690,887.41 $690,887.41 $544,335.53 $544,335.53 $2,470,445.8828
  16. 16. SEARCH ENGINE MARKETING 93% of US Hispanics use Google as their primary search engine17 Role of SEM Google Adwords Ad Groups for Redbox • Family Movie Night: Relating to affordable family entertainment • Search engine marketing allows Redbox advertisements to appear on search results relevant to • Movie lovers: Relating to new releases and genres of movies the DVD rental service’s core offerings. The AdWords platform will help us achieve the strategic • Cheap, affordable convenient: Basis of Redbox offerings for DVD/Blu-Ray rentals objectives in our media plan because we can use search advertisements to reach our SVC through • Redbox Deluxe Mobile app: Informing people of ways to enhance their movie watching experience geographical targeting with timing schemes consistent with the hours that our research proved our with the new Redbox app target audience would be online. We split our Google Adwords Campaign into four distinct ad groups to best target ads to the searchers they are most • Search engine marketing is an important aspect of a media plan for Redbox because our SVC relevant to. Each ad group has specific advertisements and ad copy tailored to what the consumer is most likely searching obtains most of their information from search. Research from the Google US Hispanic Marketing for and interested in. Forum found that 93 percent of US Hispanics use Google as their primary search engine. Therefore, we are confident that by placing search advertisements using Google AdWords, our target audience is more likely to notice our ads and act on them. Google Adwords Campaign Tactics • The Google AdWords platform only places advertisements on search results if they are relevant to the content being searched. Thus, in our media plan this is an effective tool because our advertising To make sure our keywords best matched what consumers search for, we included common misspellings and money is being spent on placements that directly relate to what the consumer is looking for. variations of Redbox such as “Red box” and “Red-box.” Additionally, the Google AdWords platform is based on a “pay per click” basis, so we are only charged for advertisements that an individual clicks on. This allows us to gain awareness for Redbox Negative keywords: products without paying, as many individuals see and recognize the ads in the “paid” portion • “Buy”: Redbox does not allow individuals to buy the DVDs or blu-rays of Google’s search results, yet do not click on them. These impressions are likely to lead to more • “Stream”: Redbox does not currently have streaming options engagement with the brand; research found that having a search engine marketing campaign • “Pirated”: Redbox does not want to attract attention from individuals who pirate films, as that risks their films increases direct traffic and organic traffic to the site.33 being burned and copied in the future Competitive: • We conducted a variety of searches to see what search strategies Redbox’s competitors are using. This showed Costs us that it is important to include specific titles of new releases as keywords. For example, “Black Swan” is a The daily cost analysis of Redbox’ SEM marketing strategy is detailed in a chart in Appendix D. The popular new DVD release. When searching “Rent Black Swan” and similar variations, competitors such as Netflix average CPC for the suggested keywords is $0.85. With the estimated daily traffic, the average daily appear at the top of the paid search results. We suggest that Redbox buy keywords that relate to the specific cost per keyword is $124.65. With this suggested strategy, we realize our daily SEM budget of $100 will movies that are within the kiosk that month. Because this media plan is setting strategies for the year to come, max out very quickly because these keywords are expensive due to competitive demand. However, we did not include these specific film titles in our keyword list because it is impossible to tell when DVDs will enter/ we still suggest purchasing all of these keywords because it is essential for Redbox to appear on the leave the Redbox. first page of search results in such a competitive market because 60% of searchers click one of the first • Instead, we decided to build on this strategy and suggest that Redbox buy keywords related to movie genres. three organic search results.38 If Redbox fell off the first page, its targeted consumers could default to For example, if an individual is looking to rent a comedy they may search “comedy DVD rental.” Buying these a competitor instead. keywords ensures Redbox will appear on the paid search results. Netflix also uses this strategy, so we have included a specific list of movie genre related keywords to our list to make sure that Redbox has a role in this competitive space of DVD rentals.30
  17. 17. SEARCH ENGINE MARKETING Search Engine Marketing Advertisements SEM Marketing & Targeting To ensure that Redbox paid search ads are reaching the desired audience, we have chosen to geographically target the ads in cities where Redbox kiosks are readily     Redbox Rewards Program: available and the population is made up of strong Hispanic markets. Therefore, the 12 cities are:13,14 SEM Timing Rationale Time of Day • Based on Simmons Data, our SVC is most likely to use the Internet between 9 a.m. and 4 p.m. They are equally likely to be on the Internet during these hours at home and at work on weekdays. During the week, our SVC is highly likely Redbox Deluxe Mobile App or Movie Lovers: to be on the Internet at home between 7 and 11 p.m.     • On weekends, Internet use is high throughout the day at home, from 9 a.m. to 7 p.m. While our target is also likely to be on the Internet from 6 to 7 a.m., Simmons data shows that Internet activity during those hours rarely leads to a purchasing decision. • We plan to schedule our search advertisements heavily throughout the workday, from 9 a.m. to 4 p.m. This coincides well with current Redbox trends of rentals most often taking place between 4 and 9 p.m. (26).9, 10, 17 Time of Year/Seasonality General Target - Convenience for Families: • Search is a very important of how our SVC obtains information and learns about products they want to buy.27 We     feel that it is essential that a Google Adwords campaign runs all year round and that the ads stay current to reflect the various promotions and specials we are running throughout the media plan. For example, for our Halloween Thriller Special, the ad copy and keywords bought will include more information about scary movies, thrillers and Halloween entertainment. During these months, the amount spent per day will not change, instead a specific ad group (includes individual keywords and advertisement) will be added to the campaign to relate to current promotions and specials.32
  18. 18. SEARCH ENGINE MARKETING Landing Page – Redbox Rewards Program Landing Page – Redbox as a service • Highlights the points-system of the rewards program so users can see the value of joining the program • Benefits of using Redbox are clearly displayed in quick, easy-to-read bullet points • Has a registration form for easy, access to becoming a rewards program member • User can type in their email to receive a coupon for a free rental and to receive the Redbox newsletter • Provides an incentive to sign up: “Earn points towards free DVD rentals,” “Receive monthly deals and discounts” • A button to “look in the Redbox” and see a visual representation of what movies are currently in Redbox kiosks • “We are where you are” • Make the message of this page match up with our creative “big” idea. Show how Redbox kiosks are located in convenient places near where people run their everyday errands.34