How the BEST companies in America are WINNING with their advertising-Despite the Economy


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The current state of our economy – and what that means to us as Advertisers.

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  • Source: University of Michigan’s Survey of Consumers Report, February 19, 2010
  • UPDATE w/new 2010 report
  • Add rice krispies box or bowl of rice krispies
  • Note to presenter: 20,000 messages per day as of August 16, 2009 Istock 3688476 and 11534101Nothing about the 1970’s in this article: “The market research firm Yankelovich estimates that the average American living in a city 30 years ago saw up to 2,000 ad messages a day. Today, estimates range from 5,000 to 20,000 ad impressions a day. To hone in on a more accurate number, one would have to determine what exactly constitutes an ad in today's ambiguous media environment. Print, radio, TV and online pop-up and banner ads are easy to tally. But what about Internet search results, recommendations on Amazon, subtle product placements in film, music and TV, and, of course, spam? “
  • Note to presenter: There are 23,329 licensed television stations in the United States.Source: FCC, Media Bureau, 1997 to 2006 the number of magazine readers increased from 171.4 million to 184.1 million Source: 10-Year Magazine Readership Trend 1997-2006, Mediamark Research, Inc.In 1990 there were 10819 radio stations in the US. Today there are 14420.Source: FCC Radio Licenses, accessed August 23, 2010, www.fcc.gov January 2010 survey showed 206,741,990 sites active online from 0 in 1995, Source: Website 101, accessed August 23, 2010, Note to presenter: “Today” for magazines is as of April 2010, for web sites is as of February 2007, radio is as of December 2009, and TV it is September 2005.IT DOES NOT INCLUDE Internet RADIO STATIONS.
  • Change the picture on this one
  • Note: 2008 figures: average minutes were 4,384,000, cost per 30 seconds was $114,900, CP 1,000 homes was $26.22Started to go down in 2009 but we used because more current2010 figures are lower still so did not use: 5,248,000 viewing minutes, $103,600 cost per 30 second and $19.74 cost per 1,000 homes.
  • 2010 Super Bowl – 106.5 million viewers
  • : DoubleClick DART for Advertisers, a cross section of regions, January – December 2008,
  • Note to presenter: Print breakdown In millionsNewspapers: $23,434Magazines: $9,182Direct mail: $52,305Business papers: $2,664To see other types of advertising, see source.
  • Integrate audience numbers for end of 2010 going to 2011 (how many more readers you hit by using both media)
  • Up from 39% in 2009.-Visited a website to learn more about an advertised product or service – 37%-Used the search function online for more information about an ad in the paper – 26%-Bought something at an Internet website – 10%
  • Up from 39% in 2009.-Visited a website to learn more about an advertised product or service – 37%-Used the search function online for more information about an ad in the paper – 26%-Bought something at an Internet website – 10%
  • Change lead-in
  • Pull this or portray it as timeless research
  • Note to MSS: We looked into this and found some stories, but we didn’t find anything that was easily recognizable or had a big wow without a lot of explanation that would drag this down. We think the better way to go would be to put one of your own success stories about this in here. DK ; terrific panel. Dk – see if can find specific companiesAre there a couple of example companies that we can refer to and drop into the script?
  • Note to MSS: Please provide the figures you want here. Scott Miraldi- dimensionalize bullet point three, remove percentages and look at another number (total dollars etc.)
  • Note to MSS: Please provide the figures you want here. Scott Miraldi- dimensionalize bullet point three, remove percentages and look at another number (total dollars etc.)
  • MSS says they will consider what logos to use and do themselves.-> CW Suggestion: Please add Fifth Third Bank or TIAA-CREF (as banking/finance is a growth category for MSS and both are among our larger accounts at MSS); on this list, I would replace CIT with Fifth Third Bank (or TIAA-CREF). Bill Aiello- The Borders Books logo should be replaced – it’s been quite awhile since they have been relevant or ran through us. Windstream is a great example of our ability to execute preprints (along with ROP) in C and D markets. The strength of MSS data allows this client to buy newspapers above and beyond local dailies Randy – we need to make a bunch of changes to this logo page so we’ll do it on our end.
  • How the BEST companies in America are WINNING with their advertising-Despite the Economy

    1. 1. How the BEST companies inAmerica are WINNING with theiradvertising –Despite the Economy…
    2. 2. Areas covered• The current state of our economy – and what that means to us as Advertisers• An in depth look at the common problems that advertisers are facing – and what the smartest ones are doing about them• An assessment of today’s key advertising vehicles, what’s working, and what’s not• Initial reactions to Digital – how is this performing?• Exploring proven mediums for reaching your ideal clients
    3. 3. Consumers are watching their spending U.S. Consumer Spending 14-day rolling average 90 80 70 60 50 40Source: Gallup Daily,
    4. 4. Unemployment is up Unemployment 16,000 14,000 12,000 Thousands 10,000 8,000 6,000 4,000 1999 2001 2003 2005 2007 2009 2011Source: Aug 5th 2011
    5. 5. Consumer confidence is low • Consumers’ assessments of their own financial situation have remained quite dismal despite the expectation of improvement in the overall economy • Just 20% of all households reported their finances had improved in early March 2011, barely above the sixty year low of 16% recorded in November 2009 • In August 2011 consumers became increasingly convinced that a renewed recession was likely to occur.Source: University of Michigan’s Survey of Consumers Report, March, 25 2011 & August 26, 2011
    6. 6. Index of consumer confidence U.S. consumer confidence average since 1978 120 110 100 Index value (1066=100) 90 80 70 60 50 40 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2011Source: University of Michigan’s Survey of Consumers Report, August 26, 2011
    7. 7. Who is shopping? • Our economic recovery has largely left out the have-nots • Households that earn less than $50,000 have been extremely downbeat • Affluent households have been an important element in getting the economy back on its feet • Just 18% of households earn more than $100,000 a year, but account for one-third of all household spendingSource: June, 2011: USA Today, Recovery helps affluent families while cash-strapped suffer 7
    8. 8. It is tempting for companies to cut back on marketing when sales go down… • Multiple studies show that companies who increase their recession marketing efforts experience higher sales during and for years after as compared to those who don’t • Lets look at some data…Source: "How Advertising in Recession Periods Affects Sales," American Business Press, Inc., 1979 , Facts on the valueof marketing during an economic downturn/recession;,:4. Kijewski, Dr. Valerie.
    9. 9. Maintained marketing spend through 1974-1975 recession • Companies during the 1974-75 recession who did not cut marketing budgets experienced higher sales and net income during those two years and the two years following than companies that made cuts during the same time periodSource: ABP/Meldrum & Fewsmith study, 1979
    10. 10. Maintained or increased marketing budget through the 1981 – 1982 recession • 600 U.S. companies were analyzed during the 1981- 82 recession and the three years following • Companies that maintained or increased their advertising expenditures enjoyed a 256% growth by 1985Source: CARR Report, Aug 13 2001
    11. 11. Where is American Express Investing MOST? • As American Express’s profits continue to surge… • They continue to invest hugely into Advertising/Marketing • Quote: “Marketing and promotion expenses rose 60% in 2010 to drive customer acquisition, new products and brand advertising” – Kenneth Chenault • Chairman and CEO American ExpressSource: American Express 2010 Annual Report:
    12. 12. Consumers feel advertising is a sign of stability• 48% of adults believe lack Advertising in down economy of advertising during a keeps company top of mind recession indicates the business must be struggling• 86% of executives agree advertising in a down economy keeps a company 86% at the front of the audience’s mind Executive pollSource: Http://; omenVenture_03_24_09.pdf; look-fat/l;Yankelovich/Harris Study 2008
    13. 13. So, it makes sense to continue toadvertise – but there still is a huge issue to deal with:
    14. 14. The commercial noise today is almost deafening • In the 1970s, consumers were exposed to about 500 ads per day • Today, the average consumer receives up to 30,000 commercial messages each day • And since consumers have a lot more media options, your audience is much harder to reach • This is called fragmentation, and it’s affecting every business in the worldSource: QRS: “Don’t Interrupt Your Consumer; Engage Them.” 2011. Washington Post, "Skip Past the Ads, But Youre Still Being Sold." 2009;
    15. 15. The number of media vehicles has increased dramatically Consumer magazines are up 52% since 1998. The number of web sites has skyrocketed by 6,381% since 1997. 75% more AM/FM radio stations exist than in 1990. New online radio stations go live every minute. There are 300% more television stations than in 1999.Source: Arbitron Infin; The Influentials ; Keller & Berry; /sizeofweb.html;;; Source: American Society ofMagazine Editors. “Number of Magazine Titles: A Magazine for Everyone” (database accessed 5/24/2010), ite Dial 2010: Digital Platforms and the Future ofRadio,
    16. 16. Cutting a path to your customer• With all these advertising messages, it’s a challenge to reach your customers• Almost every form of media is experiencing challenges with consumer engagement
    17. 17. Viewing habits and costs over 30 years: a cost per thousand home increase of 499% Households Cost per Cost per Viewing 30 Seconds 1000 Homes Average Minutes 1980 15,240,000 $57,900 $3.79 1990 12,540,000 $122,200 $9.74 2000 6,134,000 $82,300 $13.42 2005 6,043,000 $129,300 $21.45 2009 4,562,000 $103,700 $22.70 2010 5,248,000 $103,600 $19.74Source: Nielsen Media Research, February EachYear,
    18. 18. Television advertising costs are UP while viewership is DOWN • The average TV audience in 2009 was 54% smaller than 1965, yet average cost of advertising increased 426% • 78% of advertisers say TV advertising has become less effectiveSource:;Television Bureau of Advertising, 2009, TV Costs and CPM Trends.
    19. 19. But . . . more people are paying attention to events • In 2011 there were 111 million people watching the Super Bowl which is a 30% 9,000 increase from 2005 8,000 7,000 • 22 million people watched the 6,000 5,000 Royal Wedding of Prince 4,000 William and Kate 3,000 2,000 Middleton, around 8 million 1,000 more than the Prince Charles 0 and Lady Diana Spencer wedding • 6 million more people tuned in to view President Obama’s Jobs Speech than his address on LibyaSource:, Nielsen 2011;, Nielsen 2011;
    20. 20. Fans want to be part of events in real-time • A strong reason companies want to be related to live events and advertise during these events: • “Appointment TV”… people want to watch these events in real time • DVR’s have little impact on people who are watching these events in real time • But we all know that advertising during marquis events is the most costly form of advertising a company can do.Source: Media Post News, July24, 2007, Source: ESSSynovate OOH survey 2005 20
    21. 21. Direct Mail is tougher than ever • The average American receives 560 pieces of direct mail each year • 44% goes in the garbage unopened • 97% to 99% of recipients never respondSource: Proven Ways To Increase Sales And Boost Direct Mail Response Rates, August 2009, Articlesbase, by AndreaRatajczak; and Direct Mail Statistics You Can Use, By Andrew Michaels | Article Abstract,, February 2010.
    22. 22. News Audience Trends Audience Percentage Change from 2009-2010Source: State of the News Media 2011:
    23. 23. Average click rates on ads for most websites are on the decline Percentage of people who click on • Time on the Internet is Internet banners on average increasing, but people 1.20% just aren’t clicking on 1.00% 1.00% the ads 0.80% • “I think it’s interesting (that) in the digital 0.60% age, a number of 0.40% 0.40% people are Less than 0.20% connecting, but not 0.02% necessarily connected” 0.00% - Mary Beth West, CMO Kraft 1997 2001 Today FoodsSource: Source: ZSmart Business, Imedia Connection, 2010
    24. 24. A lot of people talk about digital advertising • Spending on digital surpassed newspapers for the first time in 2010 • But … as a stand alone advertising vehicle digital still does not have proven ROI • “The problem with metrics is that we have too many of them. And many of them don’t prove anything” – Greg Satell, Digital TontoSource: Internet Ad Revenues Rebound to Record High in 2010. (Mis)Measurement of Marketing : January 2011.
    25. 25. Step back and take a look at one company’s case study • 2009 – Company pulled all National TV Advertising to move to digital • Hoped to catch attention of home buyers • Didn’t see results and ended up changing overall ad spend • “We thought it was time to clarify what we are and what consumers feel about us. So it was time to go back into the consumer space with all media“ – Beverly Thorne, Chief Marketing Officer, Century 21Source: Advertising Age, March 28, 2011:
    26. 26. We all agree that it’s important to know how to get the HIGHEST return on your advertising dollars. But what is research showing us?
    27. 27. While doing your planning, know that print and the Internet work well together • Time after time, marketers have proven that even when Internet advertising is appropriate, print is the “push” that complements the web’s “pull.” • A print piece not only drives additional traffic to the website, it increases the amount that people spend when they arrive.Source: Deliver magazine, July 2010
    28. 28. Newspapers are driving online traffic 2004 • 47.8 million unique visitors 2010 • 83.7 millions unique visitors 2011 • 110.8 million unique visitors *through Q2 of 2011 • Newspaper websites continue to grow rapidly, reaching 110.8 million unique visitors in the 2nd quarter of 2011, a 57% increase from 2004. • “As the industry continues to expand its digital portfolio, readers are visiting newspaper websites in record numbers for in-depth news and information as well as hyper-local information.” -John F. Sturm, CEO & President, Newspaper Association of AmericaSource: 2011: Newspaper Websites Post… 2010 - “Newspaper web Traffic in Top Markets Leaps To An All-Time High.”, Newspaper Association of America. Newspaper websites Custom Chart. . “record visitor numbers,” July 24, 2007, Newspaper National Network.
    29. 29. Newspapers drive online action • Online direction has become a substantial response category for newspaper ads. • Consumer actions from print newspaper advertising: – 47% of readers made a purchase online or visited a website to learn more about that product/service. – 26% searched online for more information after reading a newspaper.Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA
    30. 30. Print and digital come together with mobile devices • 52.6% of people who own a mobile device (tablet, iPad, e- reader, Smartphone, etc) read the daily electronic newspaper • 77.4% of the same individuals also read the daily print newspaper • 55.3% of people who own a tablet or e-reader like to look at advertising and/or feel that brands that are advertised are better in quality than brands that do not • 73.5% of people who made a purchase online in the last 30 days own a tablet device or e-reader and read the daily newspaperSource: Scarborough USA+ 2011 Release 1; Gfk MRI Spring 2011
    31. 31. Newspapers Create a Halo Effect • 73% of readers visited Web Percent of consumers sites, used online search, or acting on print ads made an online purchase in following up on advertising 80 they saw in a newspaper in the previous month. 60 • In 2009 the number was 39% but 40 in less than two years people have become much more 20 engaged in the online research and taking action based on 0 seeing advertisements in the paper. 2011 2009 • That’s a 94% increase in two years!Source: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA
    32. 32. There’s one medium you can use to take fulladvantage of your media budget:
    33. 33. Know your audience • If the ultimate goal is to connect with your buyers in ways that create meaningful and long-lasting relationships, the first thing you need to understand is who your target markets are…not “what,” but “who.” • What are the psychographics…their motivations, self-definition, peer influences, opinions • And more importantly, WHERE do you know they are looking?Source: Kim Skildum-Reid, 2010 “Last Generation Sponsorships” 33
    34. 34. We all need media that reaches our audience • Would you like to advertise in a medium that reaches more than 50% of U.S. adults every day?Source: Clark, Martire & Bartolomeo, Inc. Survey October 2007,, MRI 2009, : “Scarborough: Most Americans Still Read Newspapers” 11/18/2009) 34
    35. 35. Reach customers who can afford your products • Would you like to advertise in a medium that reaches 57% of the population with incomes over $75,000?Source: Newspaper Association of America, Daily Newspaper Section Readership Report, 2008. 35
    36. 36. Pinpoint specific local audiences across the country • Look for a media vehicle that reaches the majority of homes... • A medium that enables you to reach people both locally and across the countrySource: Newspaper Advertising - Advantages & Disadvantages, by Mike Brassi, 36
    37. 37. Reach your audience when they are receptive • Look for a media where your ad can be examined at leisure without limited exposure • Where your audience can take their timeSource: Newspaper Advertising - Advantages & Disadvantages, by Mike Brassil 37
    38. 38. People take their time reading the paper • Time spent reading Sunday print paper – Over 60 minutes: 45% – 30 to 60 minutes: 32% • Time spent reading daily print paper – Over 30 minutes: 45% – 16 to 30 minutes: 34%Source: Newspaper Association of America,
    39. 39. Survey respondents who read newspaper preprints account for 87% of all adults Regularly check Sunday inserts from store categories Grocery or food stores 80% Question: Department stores 69 Please tell me if Discount stores 63 you regularly Drug stores 53 check Sunday inserts from any Home electronics stores 49 stores from the Home building centers 43 following general Office supply stores 39 categories. Computer stores 38 Home furnishings stores 33 Sporting goods stores 33 Base = Adults who ever Appliance stores 25 read or look at newspapers advertising inserts Cell phone stores 11 (87% of sample)Source: How America Uses Advertising 2009 Prepared by MORI Research and NAA
    40. 40. People read on-page advertising as they browse • As a matter of routine, 8 in 10 newspaper readers scan on-page ads as they page through the newspaper • Two-thirds (63%) of newspaper readers say they usually read advertising as they page through the newspaper • Scanning becomes reading when they come across something that is relevant to them in a substantive way, or has interesting creative content, or bothSource: How America Shops & Spends 2011 Prepared by Frank N. Magid Associates and NAA
    41. 41. Associated Context can be very effective• You can tie your ad to the content on the page• Health, sports, travel, beauty are all possibilities• Positive associations trigger better response rates and recall ability among consumers
    42. 42. Integrated marketing across media amplifies your message• A comprehensive marketing plan ensures your target audience receives the same message from a variety of media• It brings together a whole range of channels into one, blended campaign, all sharing a consistent message 42
    43. 43. Summary of Findings:• The best companies of our time continue to advertise, regardless of the economy• To break through fragmentation and manage your budget, you need to use the vehicles that reach your ideal client• Unproven advertising vehicles need time to prove themselves and when used right, prove to complement traditional media• The right advertising in the right medium is key to building successful campaigns• As digital continues to grow, smart companies are using traditional vehicles to increase impact, create more traffic, and strategically grow their business
    44. 44. Who is Mediaspace?• Mediaspace Solutions is a privately-held company headquartered in Wilton, CT. We also have offices located nationwide in Chicago, Los Angeles, Minneapolis and New England and New York City.• With expert service and custom- built technology systems, we help national and regional advertisers maximize their print and interactive advertising budgets.• We have an experienced and sophisticated management team focused on serving you and negotiating the best possible rates and placements. 44
    45. 45. We help companies keep their eye on the ball • 75% of companies who outsource important functions to other companies “significantly outperform their peers on three key business metrics:” – Reduced administrative expenses – Increased growth in return on assets – Higher growth in earnings before interest and taxes • No one knows your business better than you. But by focusing on your core strengths and your customers, you have time and resources to stay on top of your customers’ needs 45Source: Business impact of outsourcing—a fact-based analysis, IBM Global Services, 2006 [ABA2 100]
    46. 46. American Express Success Study• Newspaper programs used in past for AMEX proved ineffective at producing desired results and they needed a change – They called Mediaspace• We implemented a new approach using newspapers and delivered more highly visible, guaranteed ad placements – where their clients were reading• We also saved them $300,000/drop• A year later, they raised their newspaper spend by 1,000%; within 18 months, over 1,500% - and are now well into an 8 figure spend• Clearly, this change in strategy is working
    47. 47. Jessica Birk says it best…“As the leader in accountable mediasolutions, ID Media looks forpartners like Mediaspace Solutionsthat can save our clients likeAmerican Express over 85% off ontheir media while finding ways toprovide added value, exceptionalpositioning, and improved ROI”Jessica BirkSenior Vice President of ID Media
    48. 48. U.S. Census Success Study• This critically important newspaper plan in 2010 required both deep analysis and deep discounts to achieve their required results• They needed to reach everybody – in large and small markets, with a tight budget• Plan recommendations involved both large and small market newspapers, often with comprehensive ZIP analysis• Newspapers contributed to their overall success – 72% response vs. 64% in previous campaign• Newspapers proved to STILL be their key vehicle for success!
    49. 49. Let our Total Solutions Team work for your success• When clients work with us they are assigned an entire Total Solutions Team – Account development – Ad operations – Finance• You will receive regular and clear reports on your advertising activity• You can call anyone on your team directly for any answers you need• We provide customized solutions for YOUR business
    50. 50. Just a few of our other clients
    51. 51. For those of you who want a copy of these slides: send an email to
    52. 52. Best PricingBest Placement Best Targets Best ServiceGUARANTEED!