Marketing Breakfast March Doc

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These are the bullet points from my presentation to The Marketing Institute Breakfast march 10th which was powerpointless so they are just notes !!

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Marketing Breakfast March Doc

  1. 1. Marketing Institute of Ireland BreakfastMarch 10th 2010 <br />Dave Hammond Sales and Marketing Director 4fm <br />
  2. 2. Introduction set out the stall<br />Thanks to Marketing Institute<br />Traditional Media in the Digital Era / Convergence Issue<br />Helicopter View <br />Brief setting of the stage Dave Hammond Media since 1980s <br />Launched 98fm / Re- launched Radio Ireland into Today FM / Helsinki Launch among others and more recently Irelands first multi city 4fm 94.9fm <br /> Launched Fm Radio station in the middle of recession and in the middle of significant digital revolution <br />The likely impact of the significant changes that are emerging <br />The relevance of change to media companies / marketing people<br />Don’t see it as a battle of US v Them – give reasons<br />See it a market shift all companies need to respond to !<br />Especially through the impact of technology high levels of change <br /> It’s much more likely that media consumption stays high but consumed very differently <br />Try make a distinction of digital revolution versus the recession !!<br />Not a 4fm presentation but a view about the place of traditional media in the digital revolution <br />
  3. 3. KPMG Research findings<br />KPMG research of Top 100 Marketing directors (US)<br />Two significant challenges /issues <br />1. Marketing budgets in decline<br />2. The disruption of digital revolution particularly mobile<br />
  4. 4. Mobile Significance<br />Mobile Broadband<br />Mobile SmartPhones Apps<br />Mobile Advertising Admob ¾ Bn sale Google<br />Mobile Social Networking<br />M Commerce Africa / Asia<br />Mobile disruption Nokia / Apple /Google<br />Mobile Music Radio Apps / Spotify / Pandora R Apps<br />Impact of apps on various sectors and services<br />Mobile convergence -Telemedia Company <br />
  5. 5. Mobile consumer habits <br />50 times more online searches according to Google Head of Mobile with I-phone<br />Mantra -<br />19m handsets in India in one month<br />Average Indian growth 15m per month <br />Google has become one of the biggest media companies and it’s impact is wide varied fast and significant<br />Google Mantra- Think Mobile First !<br />
  6. 6. Mobile First – why- networked society<br />Evidence Overwhelming !<br />I- phone Mums / I-pad expectations<br />Personal medium and always within a few feet reach and evidence that people go home of they forget their mobile for work !<br />Apps / Sky remote / Sky News 1m apps<br />Android / Apps / Google Handsets / Nokia<br />Moving to a networked society !!!<br />
  7. 7. Social Networking<br />Statistics are widespread<br />Twitter /Facebook aim to become broadcast channels<br />Google Buzz or perhaps even a purchase of twitter possible<br />Key point is the building of a networked market!<br />
  8. 8. Social Networking<br />Facebook – 20m dollars from Super Bowl by Pepsi to social media<br />Twitter – How best to monetize<br />You tube – 100m USA users–how best to monetize and make profits<br />YouTube Ireland – 1m hits for guy who fell in the snow !<br />Google Buzz Possible purchase Twitter<br />There will be success and failures <br />All want to monetize !!!<br /> Radio is one model that in some ways they want to emulate.... Feels free , pay with attention Radio model !!<br />
  9. 9. How monetize <br />TV / Radio entertainment – warm hearts of audience – water-cooler moments<br />Newspapers – Engage the Minds of the reader <br />Google – Tech people with business processes and fixing business problems<br />Google adopted an ad model<br />Many trying to follow – key question how monetize in digital era ?<br />
  10. 10. What does all this mean ?<br />Broadcast one to many - many to many<br />Moving from EGO system to ECOsystem<br />From control to networked<br />O3B<br />Challenge for all companies old and new<br />Build trust / relevance / <br />What role can the media company play in the new networked society<br />Traditional Media and New media will co exist at different levels and with new challenges and opportunities<br />The speed and level of impact from giants more keenly felt in Ireland (everywhere) than ever before<br />Iphone / Buzz / Facebook/ Twitter <br />Previously what NYT / Radio in US UK slowly impact Irish market – much more immediate now<br />Traditional Media not only ones impacted – think Garmin Tom Tom<br />
  11. 11. Impact of Networked Society <br />Media Future with significant choice creates different levels of importance <br />Importance of Filter<br />Curators<br />Editors<br />Program Directors<br />Rather than simply expect decline -media companies will play a significant role in helping serve the menu for end users<br />
  12. 12. Music Industry decline ?<br />Music used by entertainment industry to build audience provide content and a context<br />Radio use music to set context <br />Apple used music successfully sell Ipod handsets<br />Moved to using Apps to sell I phones / Pads<br />Put Radio on the latest Nano ( to sell handsets )<br />I tunes in a lubricant - but not enough to fix music industry<br />Newspapers will look to see lessons of how to monetize<br />NY Times – More important to get the sub model right rather than fast<br />NYT 20% cost of providing journalism and 80% distribution being examined<br />Radio a model that feels like free to audience but they pay with attention and many tech initiatives are following - Gmail<br />
  13. 13. Google<br />Largest media company in the world<br />6bn - ¼ profit – projections for 5 or ten fold increases in decade ahead<br />O3B – initiative for to get the other 3 billion people on the planet connected with sattelite<br />Monetize the business with a model similar to radio – free / freemium / feels like free<br />Essentially moving from one to many – many to many<br />The share network means its not really online offline anymore but its also a challenge for established business to re-establish themselves <br />NYT 20% of entire cost base on content creation<br />
  14. 14. Where to from here<br />Watch the developments of many of the new media players monetize and watch for free or ‘freemium’ or feel like free....the radio model is very robust....other follow<br />Different for print – NYT – Get right rather than fast ----20% producing content- digital imminent<br />Record industry was initially anti- radio too as they felt that people wouldn’t buy records if they could hear them free- opposite proved to be the case !!<br />
  15. 15. Not Old V New – Socially Networked society role of media<br />Peter Mc Partlin –Carat Strategic Director Great insight<br />Digital Media is not replacing its complimenting<br />Irish traditional media holding up very well<br />TV – Youtube 100m – possibly developing movie rental ? <br />Netflix –subscriber base of 12.3m 48% watching online movie ?<br />US TV events up in viewers average 15% alongside social media usage <br /> Radio –robust / puts a context / monetized / listeners like what they get- some challenges<br />Telecoms / Ad Groups / Media Companies<br />Social Media to beat email Video and possibly search <br />TeleMedia ----future to engage in the networked society<br />Speed of change will continue and accelerate especially mobile <br />
  16. 16. Professor MIT <br />Professor Jenkins MIT Gerdleonhard<br />‘It is important to focus on emerging cultural practices rather than on the emerging technologies’ <br />Convergence Culture -when old and new media collide- amazon<br />‘new media will not replace old media but there will be a ‘convergence culture’<br />
  17. 17. What Emerging Cultural Practices ?<br />Key emerging cultural practice is society moving towards the always connected Shared network <br />This has profound implications for client /marketing and media companies both traditional and digital – how monetize opportunities<br />Obviously different degrees of impact and different levels of threat <br />
  18. 18. Peter Mc Parlin Carat<br />Traditional Media in Ireland <br />TV<br />Radio <br />Newspapers ( still unit shifting)<br />
  19. 19. Impact of change is significant !<br />ASK The Music Industry – a great example of how not to respond and move with the times..<br />EMI didn’t like the radio model from way way back ‘why will people buy records if they can hear them on radio ?<br />Music 2.0 / I-tunes / €15 CD’s and barrier to entry <br />ASK The New York Times – so important we get it right rather than just get it quick !<br />ASK Garmin and Tom-Tom<br />ASK Nokia<br />ASK Microsoft <br />ASK Any business that relied on classifieds ?<br />Look at the biggest brands in the world---Google not Coke – a company that did not build their business using extensive using above the line media advertising- so yet another groundbreaking claim for a company that has become one of the biggest media players in just over a decade<br />
  20. 20. Linking the launch of old media todays market<br />Launching traditional Radio in this landscape<br />Important that we have a strong business model – radio is monetized<br />Important we understand and recognise the significant changes in consumer behaviour <br />Get attention / Build trust / Relevant <br />Not just content creation it is also about context and radio is well placed to do that <br />
  21. 21. New paradigm<br />Mobile is a significant disruptive force<br />The dust may not settle as previously the case<br />Mobile shared networked audiences need to be engaged differently to build business in the years ahead <br />Significant challenges for all media old and new <br />Significant opportunities as media consumption is healthy but old rules no longer apply !<br />It is not an Us V them it is a competitive market for all players and 4fm and all media companies will work hard to meet the challenges ahead<br />Success and failures for old and new media companies<br />When strong winds of change are blowing some people build shelters while others build Windmills<br />Thank you take any questions ?<br />
  22. 22. Quote<br />‘when the strong winds of change are blowing some people build shelters while others build windmills ‘ <br />

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