El Futuro De Los Medios Masivos


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Unos breves tipos sobre el futuro de los medios en Mèxico entre la "tradiciòn" de las marcas y la revoluciòn de la interactividad

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El Futuro De Los Medios Masivos

  1. 1. Media characteristics A general overview of Europe and the U.S.: what can be applied here in Mexico?
  2. 2. What is the Media? The “media”: The umbrella term that includes all types of print and electronic communication (TV, radio, newspapers, magazines, outdoor, mail, etc.)
  3. 3. Initial perspective Myth: media’s only job is to expose the message Not true: media is used by all types of MC messages Not true: media also must add value for their clients Myth: media = advertising
  4. 4. Different Media Classifications +
  5. 5. Mass Vs. Niche Media Mass Media Vehicles reaching “the masses” (large, diverse audiences) Mass Media Vehicles reaching “the masses” (large, diverse audiences) Niche Media Vehicles focusing on a defined group who share a characteristic
  6. 6. <ul><li>During the 1960s, mass media advertising accounted for more than 2/3 of the total MC budget for many companies. Over time, however, management began demanding more accountability on MC budgets. The result has been a budget shift to other MC functions, particularly sales promotion, whose results are more easily measured than advertising, and to public relations, whose costs are considerably lower than advertising. </li></ul>
  7. 7. Different Types of Media Addressable Media: Carry messages to identifiable customers or prospects Interactive Media: Allow both companies and customers to send and receive messages
  8. 8. More Personal/Addressable Media are Generally More Intrusive
  9. 9. TV
  10. 10. About Mexican consumer <ul><li>In Mexico a Tv set is tuned for approximately 8 ¼ hours per day </li></ul><ul><ul><li>Range from MTY to PUE </li></ul></ul><ul><li>However this does not mean exposure: 4 ½ hours per day </li></ul><ul><ul><li>Local peculiarities </li></ul></ul>
  11. 11. About Mexican consumer <ul><li>What about National Open TV? </li></ul><ul><ul><li>Chihuahua has a higher rate of closed TV penetration than open TV </li></ul></ul><ul><ul><li>In NL Local TV is a all a case…MEO </li></ul></ul><ul><ul><li>In AGS, JAL there is a strong preference for local news… </li></ul></ul><ul><ul><li>In YUC local channel SIPSE is the leader, however press is the most relevant media… </li></ul></ul><ul><ul><li>Radio has a stronger penetration in the South of Mexico than TV… </li></ul></ul>
  12. 12. Did you know that? <ul><li>Morning news…more people get them from TV than any other media…Radio is on the second place… </li></ul><ul><li>More TV is watched in winter time…and that some periods are almost dead… </li></ul><ul><li>Time spent watching TV is also spent on doing some other activities (eating, reading, etc.) </li></ul><ul><li>A good % of adults are multitasking while watching TV (navigating, listening to music, etc.) </li></ul><ul><li>Saturday night TV has fewer viewers but they are more engaged.. </li></ul>
  13. 13. TV (tendencies) <ul><li>Friends on NBC </li></ul><ul><li>Appointment TV: is it still so important? </li></ul><ul><ul><li>What about cable?  </li></ul></ul><ul><ul><li>There are so many way to enjoy yourself… </li></ul></ul><ul><li>US and Europe: are the traditional sit coms tired? Yes but… </li></ul><ul><ul><li>Just think at shows such as 24 or Prison Break (FOX) </li></ul></ul><ul><ul><li>Where and how do you think people watch sit coms? </li></ul></ul><ul><ul><li>Do you know Survivor? This has allowed CBS to have a larger audience than NBC for the first time in years…what does that imply? </li></ul></ul><ul><ul><ul><li>Think: what was the outcome of the “series de Televisa”? </li></ul></ul></ul>
  14. 14. TV <ul><li>Reality Shows are becoming the top-rated TV Shows in the US: </li></ul><ul><ul><li>American Idol in the US…. </li></ul></ul><ul><ul><li>And here in Mexico La Academia … </li></ul></ul><ul><li>Marketers look at the program's relevance to the audience: do they lean back or towards as they are watching it? </li></ul><ul><ul><li>People remember ads when: </li></ul></ul><ul><ul><ul><li>They watch purposefully: school, job, training or simply to remain part of their social network </li></ul></ul></ul>
  15. 15. TV This was not that great success (so far)….but DVR (Digital Video Recorder)…. Do you know what are they for? Currently they are just in the 8% of US House= Holds; by 2009 it is expected 49% will have it. In Mexico it has just arrived with many limitations What will that imply???
  16. 16. TV (tendencies) <ul><li>What will users will be fair likelier to watch lively? </li></ul><ul><ul><li>Live sports </li></ul></ul><ul><ul><li>Events TV such as The Academy Award, Super Bowl, Grammy’s, Sports </li></ul></ul><ul><ul><li>Useful stuff such as News, Weather Broadcast… </li></ul></ul><ul><ul><li>(think also at Video-on-demand from cable </li></ul></ul><ul><ul><li>Companies like Sky Premiere….) </li></ul></ul>
  17. 17. TV (tendencies) <ul><li>Consumer generated ads….You Tube </li></ul><ul><ul><li>Do you know Chuck Norris and Mr Huckabee? </li></ul></ul><ul><li>Viral marketing might be a good option…but the worst nightmare… </li></ul><ul><ul><li>Jet Blue, Mastercard connected successfully with internet savvy young people </li></ul></ul><ul><ul><li>… but CHEVY (Tahoe) was a total disaster </li></ul></ul><ul><ul><ul><li>The environmentalist people attacked them.. </li></ul></ul></ul>
  18. 18. TV (tendencies) <ul><li>Do you know Al Gore’s Current TV ? </li></ul><ul><ul><li>It’s the only network based entirely around viewer-created content… </li></ul></ul><ul><ul><li>It’s not only “journalism”, it’s also advertising… </li></ul></ul><ul><ul><li>Consumer-generated advertising to be exploited by brands to reach inexpensively internet oriented consumers through a viral campaign (You Tube, Blogs, Mails, etc.) </li></ul></ul><ul><ul><ul><li>Some success stories: Mastercard, Sony, Converse, Jet Blue… </li></ul></ul></ul><ul><ul><ul><li>However things can go awry…Chevrolet Tahoe </li></ul></ul></ul>
  19. 19. TV <ul><li>Ratings : 1 rating point represents 1 % of the total households in Mexico with a TV. On cable TV, anything over 1.5-2% is something to get really excited about; on open TV the tops shows earn between 15 and 25% with peaks up to 33-34% </li></ul><ul><li>Share : This is measured in the % of television sets tuned into a show. So, if Lopez Doriga gets a 56% share, then 56% of households watching TV at 10,30 PM on a given Monday were tuned in Televisa. </li></ul>
  20. 20. <ul><li>What is the difference between rating and sharing? </li></ul><ul><ul><li>Target 19-49 </li></ul></ul><ul><ul><li>Target P 4+ </li></ul></ul><ul><ul><li>What does a 2.7% share in 19-49 means? </li></ul></ul><ul><li>CPM (cost per thousand): ad rates </li></ul><ul><li>Rating: ad rated </li></ul><ul><li>GRP: gross rating points </li></ul>
  21. 21. <ul><li>Shortcomings: </li></ul><ul><ul><li>How many viewers are really watching from the household where the set is on? Is anybody really watching? </li></ul></ul><ul><ul><li>Is really effective this metrics? </li></ul></ul><ul><ul><li>Furthermore, IBOPE only measures MEX, GDL, MTY: what about other cities? Are they really watching you? </li></ul></ul><ul><ul><li>Local TV in Mexico can’t tell they have a x% rating  appreciations can only be based on qualitative bases or personal appreciations…. </li></ul></ul>
  22. 22. <ul><li>Shortcomings: </li></ul><ul><ul><li>Do you know the case of the anchor women (naked) in Primetime Live in Cleveland?? </li></ul></ul>
  23. 23. <ul><li>Reach versus frequency strategy </li></ul><ul><ul><li>Rubén Mendoza versus Peña Nieto </li></ul></ul><ul><li>Pro’s and Con’s </li></ul><ul><li>In the future, ENGAGEMENT will be the relevant metrics… </li></ul><ul><li>Ratings are overrated (Quote: David Verklin) </li></ul>
  24. 24. TV Contents <ul><li>Do you know the American Family Association and the Methodist Rev. Donald Wildmon? (U.S.) </li></ul><ul><li>With that kind of intimidation from these kind of movements, marketers (and networks) must pay a lot of attention… </li></ul><ul><ul><li>Desperate Housewives (they did not care to…) </li></ul></ul><ul><ul><li>Nip/Tuck (sex) </li></ul></ul><ul><ul><li>Survivor and GM (race issue) </li></ul></ul><ul><ul><li>On defensive…P&G (that’s interesting) </li></ul></ul>
  25. 25. TV Contents <ul><li>What does this example teach us? </li></ul><ul><ul><li>Reluctance to take risks: contents will standardize and will avoid being controversial </li></ul></ul><ul><ul><li>Pay attention at where you advertise… </li></ul></ul><ul><ul><li>… and cash dividends…. </li></ul></ul><ul><ul><li>… and get them happy with you… </li></ul></ul><ul><ul><li>… however, don’t let them press you </li></ul></ul><ul><ul><ul><li>Eg. Disney and The Chronicles of Narnia </li></ul></ul></ul><ul><ul><li>Advocacy Groups will definitely become an issue very soon in Mexico as well </li></ul></ul>
  26. 26. TV CONTENTS <ul><li>However… </li></ul><ul><li>Superbowl is still super </li></ul><ul><li>América – Chivas is still super… </li></ul><ul><li>Live sports and event programming will </li></ul><ul><li>remain part of our culture…just be smart </li></ul><ul><li>when you negotiate them!! </li></ul>
  27. 27. Content branding: Product Placement <ul><li>Connect your brand with story, actor, talent: it is Brand Integration </li></ul><ul><li>Investment in the USA in 2006: 6 BLN $ (+65%): </li></ul><ul><ul><li>8,303 product placement in the Top 10 Movies </li></ul></ul><ul><ul><li>Product placement on 7 out of 10 reality shows </li></ul></ul>
  28. 28. <ul><li>Product placement, if well done, foster: </li></ul><ul><ul><li>Brand visibility </li></ul></ul><ul><ul><li>Reinforce attributes through associations </li></ul></ul><ul><ul><li>Connect the Brand to well known talents </li></ul></ul>
  29. 29. <ul><li>Product Placement might be: </li></ul><ul><ul><li>No integrated / no expressed </li></ul></ul><ul><ul><li>Integrated / expressed </li></ul></ul><ul><ul><li>Integrated / used </li></ul></ul><ul><ul><li>Embedded </li></ul></ul><ul><ul><li>Rules: </li></ul></ul><ul><ul><li>More integrated  more effective </li></ul></ul><ul><ul><li>Right vehicles  influence context: manage the conflict advertisers vs producer </li></ul></ul><ul><ul><li>TRUST is the base of product placements in brand </li></ul></ul><ul><ul><li>Look for deeper, emotional, subconscious level </li></ul></ul>
  31. 31. <ul><li>“ Engagement will be critical in the 21st Century: it will replace soon the GRP” </li></ul><ul><li>How to position your brand? </li></ul><ul><li>Differentiation should evolve to: </li></ul><ul><ul><li>Correspondance </li></ul></ul><ul><ul><li>Alignment </li></ul></ul><ul><ul><li>Beneficial environments </li></ul></ul><ul><ul><li>Valued experiences </li></ul></ul>
  32. 32. <ul><li>In product placement tradicional media metrics aren’t effective: </li></ul><ul><ul><li>Eg. We don’t know how frequency really works </li></ul></ul>
  33. 33. <ul><li>5 golden rules for Product Placement: </li></ul><ul><ul><li>Put it in a Quality Show </li></ul></ul><ul><ul><li>It must be relevant </li></ul></ul><ul><ul><li>It must engage </li></ul></ul><ul><ul><ul><li>Work better in News and Sports </li></ul></ul></ul><ul><ul><li>It must involve: consumer will want to buy what he sees </li></ul></ul><ul><ul><li>It must capture attention </li></ul></ul><ul><ul><ul><li>Works better at the start of the program </li></ul></ul></ul>
  34. 34. <ul><li>Product placement versus Spots (source: AC Nielsen): </li></ul><ul><ul><li>Less brand recognition (40% vs 47%) </li></ul></ul><ul><ul><li>More brand feeling (58% vs 53%) </li></ul></ul><ul><ul><li>More purchase interest (38% vs 36%) </li></ul></ul><ul><ul><li>Consider associating Product Placement with </li></ul></ul><ul><ul><li>traditional spots: it boosts this indicators </li></ul></ul><ul><ul><li>(57.5%, 59%, 45% respectively) </li></ul></ul>
  35. 35. <ul><li>Brand familiarity is the key driver </li></ul><ul><li>Integrated Promos (advs on future shows) is an excellent way: it must give valuable information about the show in order to work…Be carefull! </li></ul><ul><li>Eg: E! Ent. (tickers), VH1, FOX,… </li></ul>
  36. 36. <ul><li>Procuct Placement: </li></ul><ul><ul><li>Build brand awareness / familiarity </li></ul></ul><ul><ul><li>Brand association </li></ul></ul><ul><ul><li>Sales </li></ul></ul><ul><ul><li>Good to launch a new product if there is already and established brand </li></ul></ul><ul><ul><li>Spread word-to-mouth </li></ul></ul>
  37. 37. <ul><li>Be aware of: </li></ul><ul><ul><li>Target carefully </li></ul></ul><ul><ul><li>Ensure integration verbally and visually </li></ul></ul><ul><ul><li>Be relevant </li></ul></ul><ul><ul><li>Respect creative nuances </li></ul></ul><ul><ul><li>Integrate with other brand characteristics </li></ul></ul><ul><ul><li>Evaluate with an established metrics </li></ul></ul><ul><ul><li>Rules must be clear </li></ul></ul>
  38. 38. <ul><li>Some good examples…. </li></ul><ul><ul><li>Nokia in Mexico </li></ul></ul><ul><ul><li>Domino’s Pizza in Mexico </li></ul></ul><ul><li>And some horrible examples… </li></ul><ul><ul><li>As much as you like… </li></ul></ul><ul><li>Where can you see brand / product placement? </li></ul><ul><ul><li>Movies </li></ul></ul><ul><ul><li>Series </li></ul></ul><ul><ul><li>Reality shows </li></ul></ul><ul><ul><li>Live Events but also… </li></ul></ul><ul><ul><li>Video Games </li></ul></ul><ul><ul><li>Theater </li></ul></ul><ul><ul><li>Books </li></ul></ul><ul><ul><li>Songs…etc. etc. etc. etc. </li></ul></ul>
  39. 39. NEWSPAPERS What will the future give them?
  40. 40. Newspapers <ul><li>Did you know that? </li></ul><ul><ul><li>Many readers are engaged in other activities while reading </li></ul></ul><ul><ul><li>More newspapers are read on Sunday and Monday </li></ul></ul><ul><ul><li>Local section are the most read… </li></ul></ul><ul><ul><li>Local peculiarities are extremely important here… </li></ul></ul>
  41. 41. Newspapers <ul><li>Strengths </li></ul><ul><ul><li>Reader education and income (not always) </li></ul></ul><ul><ul><li>Tangible </li></ul></ul><ul><ul><li>Reader loyalty </li></ul></ul><ul><ul><li>Short lead time </li></ul></ul><ul><ul><li>Low production cost </li></ul></ul><ul><ul><li>High one-time reach </li></ul></ul><ul><ul><li>Good to give long and detailed explanations </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Poor reproduction </li></ul></ul><ul><ul><li>Readership is declining </li></ul></ul><ul><ul><li>Media wast </li></ul></ul><ul><ul><li>Cluttering </li></ul></ul>
  42. 42. <ul><li>3 ways of advertising: </li></ul><ul><ul><li>Classified </li></ul></ul><ul><ul><li>Display </li></ul></ul><ul><ul><li>Inserts </li></ul></ul><ul><ul><ul><li>Publireportajes </li></ul></ul></ul><ul><ul><ul><li>Encartes </li></ul></ul></ul>
  43. 43. <ul><li>Why is the circulation of the main newspapers in the US is declining? </li></ul><ul><ul><li>Citizen journalism </li></ul></ul><ul><ul><li>Craiglist (mercadolibre.com) </li></ul></ul><ul><ul><li>Time lag between news happening and people reading it </li></ul></ul><ul><ul><ul><li> sense of community and is being lost </li></ul></ul></ul><ul><ul><li>Free Press is also to blame </li></ul></ul><ul><ul><ul><li>There are 100 new free big city dailies nowadays… </li></ul></ul></ul>
  44. 44. <ul><li>METRO INTERNATIONAL </li></ul><ul><ul><li>18.5 millions free dailies </li></ul></ul><ul><ul><li>In 21 countries… </li></ul></ul><ul><ul><li>In 17 languages </li></ul></ul><ul><ul><li>And in 83 major cities </li></ul></ul><ul><ul><li>What about their operation costs? </li></ul></ul><ul><ul><ul><li>A traditional Paper: 340 newsroom people, an ad page can cost as much as 17,000 USD (The Baltimore Sun) </li></ul></ul></ul><ul><ul><ul><li>A free paper…20 newsroom people, an ad can cost as much as 2,400 USD ( The Baltimore Examiner) </li></ul></ul></ul><ul><ul><ul><li>Assignment: find out the same data between REFORMA and METRO MEXICO DF </li></ul></ul></ul>
  45. 45. <ul><li>METRO INTERNATIONAL </li></ul><ul><ul><li>These are magnet for younger readers: 74% of METRO readers are < 49 años….news-lite style </li></ul></ul><ul><ul><li>People can get news anywhere…the perceived value of traditional newspapers is eroding </li></ul></ul>
  46. 46. <ul><li>Did you know that? </li></ul><ul><ul><li>Newspapers have 2 tier pricing </li></ul></ul><ul><ul><li>The most successful newspapers will be the local and community specificity based: just think at some examples here in Mexico </li></ul></ul><ul><ul><li>Newspapers are going online…however this is only 5% of their total revenues in the US </li></ul></ul>
  47. 47. <ul><li>Philip Meyer “ The Vanishing Paper ” </li></ul><ul><ul><li>Newspapers in 10-12 years will look radically different than today </li></ul></ul><ul><ul><ul><li>They may be delivered electronically through a scroll down system on your PDA or cell phone </li></ul></ul></ul><ul><ul><ul><li>A lot will simply disappear </li></ul></ul></ul><ul><ul><ul><li>The survivors will be a very premium exclusive product or they will go ultralocal </li></ul></ul></ul><ul><ul><ul><li>They will be fully interactive… </li></ul></ul></ul><ul><ul><ul><li>¿Is he dreaming? ¿Has he drunk? ¿Or he is visionary? </li></ul></ul></ul>
  48. 48. Outdoors Why do they pray for traffic jams?
  49. 49. Outdoors <ul><li>Pro’s </li></ul><ul><ul><li>Localized </li></ul></ul><ul><ul><li>Frequency buildr </li></ul></ul><ul><ul><li>It is not on demand: you have to see it </li></ul></ul><ul><li>Con’s </li></ul><ul><ul><li>Low attention </li></ul></ul><ul><ul><li>Very short exposure time </li></ul></ul><ul><ul><li>Visual contamination: they may get lost </li></ul></ul><ul><ul><li>Zoning restrictions </li></ul></ul>
  50. 50. <ul><li>They may be fixed… </li></ul><ul><li>… but they are more and more becoming electronic billboards that change static messages dozens of times a day… </li></ul><ul><ul><li>They will ultimately replace the billboards (US Outdoor Advs. Association) </li></ul></ul>
  51. 51. <ul><li>What does it change for a consumer? Almost nothing </li></ul><ul><li>What does it change for a marketer? </li></ul><ul><li>Almost everything: </li></ul><ul><ul><li>Flexibility: you can target specific area by day part or day of the week or message… </li></ul></ul><ul><ul><li>You buy time instead of space </li></ul></ul><ul><ul><li>Eg. Flat Panel TVs in Office Elevator: lunch time is prime time!! </li></ul></ul>
  52. 52. <ul><li>So what does outdoor mean today? </li></ul><ul><ul><li>More than 200 formats </li></ul></ul><ul><ul><ul><li>Ads on buses </li></ul></ul></ul><ul><ul><ul><li>Plaques atop taxis </li></ul></ul></ul><ul><ul><ul><li>Coasters in bars </li></ul></ul></ul><ul><ul><ul><li>Shopping carts </li></ul></ul></ul><ul><ul><ul><li>Airport signage </li></ul></ul></ul><ul><ul><ul><li>Street furniture </li></ul></ul></ul><ul><ul><ul><li>Etc. </li></ul></ul></ul>
  53. 53. <ul><li>What do they promote? </li></ul><ul><ul><li>70% are local business </li></ul></ul><ul><ul><li>It is growing very fast because of technological innovation, creativity,…in 2006 were more than 6% of total media investment in the US (2.3% in 2004), ¿in Mexico? Find out. </li></ul></ul><ul><ul><li>Good opportunity cost compared to TV </li></ul></ul><ul><ul><li>Can you measure its effectiveness? </li></ul></ul><ul><ul><ul><li>They have started to…Nielsen Outdoor, IBOPE, etc. </li></ul></ul></ul>
  54. 55. <ul><li>Does it work? </li></ul><ul><ul><li>An example: “Sharlene Wells, Miss America” stayed for over a month in all billboards all over town that were not sold… </li></ul></ul><ul><ul><li>What was the result? </li></ul></ul><ul><ul><li>Ask who is Miss America? </li></ul></ul><ul><ul><ul><li>After the campaign 12% of people were able to tell that unaided, </li></ul></ul></ul><ul><ul><ul><li>before a mere 1% </li></ul></ul></ul>
  55. 56. <ul><li>Furthermore it is becoming interactive… </li></ul><ul><ul><li>It can talk to you (via short wave radio link)… </li></ul></ul><ul><ul><li>Download data (Street Beam Devide) </li></ul></ul><ul><ul><li>Change messages as you stroll past (through motion detection…) </li></ul></ul><ul><ul><li>Please note: pray for traffic jams.. </li></ul></ul>
  56. 57. Magazines
  57. 58. <ul><li>Strength: </li></ul><ul><ul><li>Audience selectivity: possibility of segmentation </li></ul></ul><ul><ul><li>Expertise environment </li></ul></ul><ul><ul><li>High credibility </li></ul></ul><ul><ul><li>Loyal readers </li></ul></ul><ul><ul><li>High quality </li></ul></ul><ul><ul><li>Relative long life of ads. </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Long lead time </li></ul></ul><ul><ul><li>Long production time </li></ul></ul><ul><ul><li>Low mass reach (but check pass along rate) </li></ul></ul><ul><ul><li>Costly production </li></ul></ul><ul><ul><li>Low frequency (weekly, monthly, etc.) </li></ul></ul><ul><ul><li>Difficult to measure penetration </li></ul></ul>
  58. 59. <ul><li>2 kind of magazines: </li></ul><ul><ul><li>Restricted circulation </li></ul></ul><ul><ul><li>Free circulation </li></ul></ul>
  59. 60. Radio What about digital radio? Is the AM really dead?
  60. 61. <ul><li>Strengths: </li></ul><ul><ul><li>Audience selectivity: segmentation at its highest </li></ul></ul><ul><ul><li>Frequency builder </li></ul></ul><ul><ul><li>Low production cost </li></ul></ul><ul><ul><li>Short lead time </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>Background media  low attention (if any) </li></ul></ul><ul><ul><li>Low reach </li></ul></ul><ul><ul><li>Only sound… </li></ul></ul><ul><ul><li>Short lived message </li></ul></ul>
  61. 62. <ul><li>It is a very loyal media…local based, sense of belonging,… </li></ul><ul><li>Loyal audience </li></ul><ul><li>In some parts of Mexico they are the leading media (South East) </li></ul><ul><li>10, 20, 30 seconds format </li></ul><ul><li>On air promotions </li></ul><ul><li>Brand sponsoring </li></ul><ul><li>It’s only hearing but do not forget some success story used through radio…Sensorial Branding. </li></ul>
  62. 63. <ul><li>Some topics to think about: </li></ul><ul><ul><li>Is really radio that cheaper than TV?? Remember your target in terms of frequency and reach… </li></ul></ul><ul><ul><li>Radio metrics </li></ul></ul><ul><ul><li>Is AM really dead? </li></ul></ul><ul><ul><li>What about digital radio? </li></ul></ul><ul><ul><li>Why is decreasing time consumers are exposed to the Radio? Ipods, Cell Phones…new toys </li></ul></ul>
  63. 64. CINE
  64. 65. <ul><li>Strengths: </li></ul><ul><ul><li>Audience is captive </li></ul></ul><ul><ul><li>Long exposition to the message: 60 sec. </li></ul></ul><ul><ul><li>Spectacular, highly emotional </li></ul></ul><ul><ul><li>Can be complemented by brand messages in cups, seats, etc. </li></ul></ul><ul><li>Weaknesses: </li></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><li>Criteria of selling screen in cine </li></ul></ul><ul><ul><li>Limited audience </li></ul></ul><ul><ul><li>Dispersion </li></ul></ul>
  65. 66. Non traditional Media Something you have to look at…BTL is increasing is % of the total marketing investment
  66. 67. <ul><li>Marketing approach that reaches people in a very unconventional way – in the streets or some other unexpected places </li></ul><ul><ul><li>Often used in Guerrilla Marketing </li></ul></ul><ul><ul><li>Hard to measure impact, ….. </li></ul></ul>
  67. 68. Non-Traditional Media Event for MSN.com
  68. 69. Some future (or futuristic) tendencies A whole new game
  69. 70. <ul><li>Google: an efficient and automated way to sell ads that target consumers with what they actually really want to see…it dominates the US 12 BLN USD Advs Internet Market </li></ul><ul><ul><li>You only pay for the attention you really get…and you can measure it… </li></ul></ul>
  70. 71. <ul><li>Wikipedia, My Space: marketers are there. </li></ul><ul><li>And they tread very carefully so as not to mess up with these communities </li></ul><ul><li>Trying to build on Buzz Marketing as if it were consumer generated advs.: grassroots viral adoption of a brand / product in a community </li></ul>
  71. 72. <ul><li>Video Games: great for brand placement. Real ads are accepted: they give a sense of realism </li></ul><ul><ul><li>US ARMY </li></ul></ul><ul><ul><li>VOLVO </li></ul></ul><ul><ul><li>VISA </li></ul></ul><ul><ul><li>AXE </li></ul></ul><ul><ul><li>Just think: around the globe there are 100 MLN Play Stations2 and 40 MLN XBOX </li></ul></ul><ul><ul><li>Who plays? Not only young boys…and 96% of them remember and like the brands that are present </li></ul></ul><ul><ul><li>… furthermore, this unregulated world is great for testing new ideas… </li></ul></ul><ul><ul><li>Do you know SECOND LIFE? </li></ul></ul>
  72. 73. <ul><li>Online search: 62% of searchers do not go beyond the 1st page, 90% do not go beyond the 2nd page </li></ul><ul><ul><li>A good way: make simple organic search results in the unpaid section…Think very well the words you may use… </li></ul></ul><ul><ul><li>This is how Aubuchon in Nebraska beated SEARS as an hardware store!!! … </li></ul></ul>
  73. 74. <ul><li>Experiential and Event Marketing : consumers want to feel and touch a product, in an entartaining way </li></ul><ul><li>Works better for food, beverages, PC, cell phones, cars. </li></ul><ul><li>LEGOLAND, MAXIM </li></ul><ul><li>As old as sampling: go where and when people are most open…Neutrogena </li></ul>
  74. 75. <ul><li>Cell Phone: 4 BLN by 2010. Portable interactivity. 89% of major US brands plan to market via mobile phones by 2008 (Airwide solutions). Why? </li></ul><ul><ul><li>Consumers are very willing to trade free air time with listening to ads (eg. VIRGIN….response rate was 4-10% versus 1% direct marketing) </li></ul></ul><ul><ul><li>New technology will just increase that…Google, Microsoft, Yahoo! are all present on cell phones… </li></ul></ul>
  75. 76. <ul><li>Blogs : brands are behind them and you do not even notice that! </li></ul><ul><ul><li>More than 100 new blogs per minute about everything </li></ul></ul><ul><ul><li>90% fail in a month; only 55% survive more than 3 months </li></ul></ul><ul><ul><li>For marketers is a big opportunity: talk to people when they are really listening and interested </li></ul></ul><ul><ul><li>Blog advertising, section in corporate sites…some companies are looking for dialogue (Fedex, Diageo) </li></ul></ul><ul><ul><li>Some other brands pays bloggers to post positive comments around the blogosphere: be aware of the damage to the brand. They will see you! (Dr. Pepper in 2003) </li></ul></ul><ul><ul><li>How much does it cost advertsing there? AUDI promoted A3 on 286 blogs for 3 months: 50,000 USD. BUDGET RENT-A-CAR. </li></ul></ul><ul><ul><li>Pay attention: anyone can destroy a brand in the blogosphere!! </li></ul></ul>
  76. 77. <ul><li>Sport Marketing: a whole new game </li></ul><ul><ul><li>Golf </li></ul></ul><ul><ul><li>Football </li></ul></ul><ul><ul><li>Bull Riding (!!!) </li></ul></ul><ul><ul><li>… . </li></ul></ul>
  77. 78. <ul><li>A conclusion: </li></ul><ul><li>If you want to know about the media in the future look at what the sex industry is up to today </li></ul><ul><li>TV will remain a mere King, not yet an Emperor: most of it will be on demand </li></ul><ul><li>By 2010 traditional ads will have lost 2/3 of its effectivity compared to 1990 (Mc Kinsey) </li></ul>
  78. 79. <ul><li>We are moving to the age of RELEVANCE </li></ul><ul><li>People don’t hate ads, they hate interruptions </li></ul><ul><li>Experiental marketing </li></ul><ul><li>Less TV, more online, centrality of corporate Web. It will reflect the ethnic makeup and cultural mosaic in the US. </li></ul><ul><li>More interactive elements </li></ul><ul><li>Harder negotiation on TV: the first or the last ads on the pod. More Brand Placement </li></ul><ul><li>Hyperlocalism and personalization </li></ul><ul><li>A lot more options: just think, cable, digital radio, tematic networks, etc. </li></ul><ul><li>Blogs & C-…smaller but more valuable audiences </li></ul>