Real Insights
Navigating the media world with
  consumer centric research

            Dirk Engel
        Universal McCann

      ESOMAR Conference
          „WM3 2008“
    June 4th 2007, Budapest
The media world is changing…
              High               Unlimited number
              reach              of media




Passive                                     Acitve
media consumption                           media usage

      80‘s                90‘s                 00‘s


              Limited            Low
              number of          reach
              media
                           3
A certain feeling of insecurity in marketing

    Is our repertoire of
  communications able to
      face upcoming
        challenges?




                               What is the best way to
                               use research findings to
                                improve marketing &
                                  media planning?
                           4
Consumer centric research…

                                                          My
             ABC1                                       Feelings      My
                                        My
  Male                Teenager                                     Attitudes
                                      Brands
  30-59

                                       My                               My Needs
                                      Media

           Product                                      Kunde
  Female             Housewifes            My                        My
   20-49                              Day in the Life              Thoughts



                                                 Consumer
     Traditional Approach
                                               Centric Approach



                                  5
…leads to new approach in media planning
        Yesterday                            Today

           Target                   Target segmentation


                                                                 Consumer
                                conflicts   chances    ideas
                                                                  Insights


                                   Communication strategy



    TV, radio, press etc.         Mass media, online, events,
                                  sales promotion, PR, mobile,
                                   dialouge marketing, CRM,
                                      sponsorship, viral etc.


      Media plans                Communication plans

                            6
What we need from media research today

 • Data about usage of traditional and recently emerged media
 • Information on how target audiences react to below the line
   communication channels
 • Understanding of how people use media in their daily life
 • Insights into how consumers interact and communicate with each
   other
 • Variables, which are able to link findings from effectiveness
   research to robust survey data
 • …and last but not least: An idea of what the near future will bring to
   the fields of consumer behaviour and media usage




                                   7
New kind of research is needed


Traditional media studies                     Real insight studies
• Huge sample size                       • Mulit media point of view, 360°
• Accurate measurement of reach &        • Qualitative information
  frequency for one medium
                                         • Linked to models of effectiveness
• „Currency“, gold standard                research & psychology
• Base for intra media selection         • Interesting stories, not only figures
• But…                                   • Input for strategic communication
                                           planning
   • …no multi-media point of view
                                         • Addition to syndicated research
   • …not consumer centric
   • …not flexible




                                     8
360° view on media usage



         Consumer



     Situation


       Activities


          Media


            Mood




                     9
…needs new studies



        Consumer



    Situation


      Activities


         Media


           Mood




            A study for navigating today‘s media world
                               10
Media in Mind™

• First international wave of Media in
  Mind™ in 1997
• Recent wave in Germany: June 2007
• Sample = 1,600 interviews
• German adults, 14 to 64 years
• Study design: Universal McCann
• Fieldwork: TNS Infratest


    – Discussion of methodological issues:
        ~ please see the paper!


                                  11
The questionnaire

•40 page questionnaire
covering…
  • Media usage
  • Internet & computer
  • Mobility
  • Shopping
  • Consumption
  • Attitudes, values
  • Leisure
  • FutureView (by TNS Infratest)



                                    12
The diary

•7-day-diary
  • Whole week: Monday to Sunday
  • Half hour intervals
  • Database of 11,200 days
  • Careful quality control guarantees
    complete & robust data




                                         13
Information measures
 Diary

       Mood                     Day of the week                   Activities




                                Questionniare:
       Attention                Demographics                         Place
 (high, medium, low)                                           (home, work, OOH)
                                Leisure, Lifestyle
                                 Consumption
                                    Attitudes



 Media: TV, radio, magazines,                                  Company
     Newspapers, internet,                           (alone, with others, with kids)
 video/DVD, PC, books, music

                                        14
Input for strategy & marketing communications
 • Which is the best mix of ad media?
 • Which are the most effective time periods and days for advertising?
 • Which other communication channels are appropriate?
 • Which media are best to stimulate short-term sales because of
   reaching the target audience close to the purchase?
 • What information sources are valued the most and used for purchasing
   products?
 • How do activities like computer and video gaming affect the time
   budget of specific target audiences?
 • Which media, topics, products will become more relevant in the
   future’? (Based on research agency tests).



                                 15
How consumers cope with information overload?
•Consumers are not overwhelmed by the today’s media output, they developed
mechanisms to deal with it.
   • Three examples:

   • On psychological level
                = Selective attention management

   • On sociological level
                = Division of labor in information processing

   • Strategy for marketing communication
                = Finding the best moment to deliver relevant messages


                                      16
The importance of attention management

                         “Viewer attention to what is on
                         the screen has a direct bearing on
                         commercial perception and
                         communication. The real TV
                         value issue is attention and not
                         zapping or liking.”




                         How can we measure
                             attention?

     Erwin Ephron


                    17
Laboratory vs. real life




                           18
Time spend on media in minutes
German adults 14 – 64 years, n = 1.600

   350
                                                 319 min.   328 min.
            304 min.
   300
                                 255 min.
   250


   200


   150


   100


    50


     0

         Adults 14-64            14-29 y         30-49y     50-64y
            years

                                            19
Share of media on total time spend on media
   German adults 14 – 64 years, n = 1.600

     TV           Radio             Internet               Newspapers               Magazines


Adults 14-64 years                    42 %                           33 %           15 %      8 % 2%




             14-29 y                  44 %                           27 %           23 %          5 % 2%




              30-49y                 40 %                            35 %            16 %         7 % 1%




              50-64y                   45 %                            33 %         9%      11 %     3%




                       0%     10%     20%     30%        40%   50%     60%    70%   80%     90%      100%




                                                    20
TV viewing & attention
Average day, German adults 14 to 64 years

    TV with low Attention       …with medium Attention         …with high Attention
     100%


      80%


      60%


      40%


      20%


       0%
            07:00   09:00   11:00   13:00   15:00   17:00   19:00   21:00   23:00   01:00



                                            21
Time spend on media with high attention
  German adults 14 – 64 years, n = 1.600

350
                                                     319 min.             328 min.
      304 min.
300
                              255 min.
250


200


150


                 81 min.                                                             93 min.
100                                        73 min.              79 min.

 50


  0

       Adults 14-64                14-29 y               30-49y               50-64y
          years
                                                22
Internet usage & attention
Average day, German adults 14 to 64 years

    Internet with low Attention      …with medium Attention           …with high Attention

      100%


      80%


      60%


      40%


      20%


       0%
             07:00   09:00   11:00   13:00   15:00   17:00    19:00    21:00   23:00    01:00



                                             23
Share of Attention – Shift from TV to internet
   German adults 14 – 64 years, n = 1.600

     TV           Radio             Internet                Newspapers                Magazines


Adults 14-64 years                    43 %                      9%            32 %            14 %      2%




             14-29 y                 38 %                 7%                  44 %                 8%   3%




              30-49y                  42 %                      8%            34 %            13 %      2%




              50-64y                    46 %                     12 %         19 %          20 %        3%




                       0%     10%     20%      30%        40%    50%    60%     70%   80%     90%       100%




                                                     24
2-Step-Flow of communication yesterday & today

  30‘s - 50‘s     60‘s - 80‘s        Today

    MEDIA           MEDIA       M1   M2   M3   M4




                      25
Giving advice for specific product categories
    German adults 14 – 64 years, n = 1.600
                                                                                          Female
                                                                  19%
               Don't give any advice                                                      Male
                                                                       21%


                                                                                                      46%
                        Food, cooking
                                                                       21%

                                                                                          37%
     Entertainment, music, books
                                                                               30%

                                                                                     34%
                 Travelling, vacation
                                                                                   32%

                                                           11%
Computer-Hardware und -Software
                                                                                           38%

                                                       10%
    Personal finance, investments
                                                                   20%

                                             0   5    10     15   20     25   30     35    40    45     50
                                                 26
Preferred source of information about cars
      German adults 14 – 64 years, n = 1.600
60                                                               Opinion Leader

            51%
                                                                 Advice giver Cars
50
                             47%               46%
                                                                 42%
                                        39%                                   40%
40
                      37%

     31%
30
                                                                       25%


20
                                                           19%
           1st                          1st
                                                                                          11%
10
                                                                                     7%


0


     Magazines        Word of           Internet          Newspapers         TV      Radio
                      Mouth
                                                     27
What the future will bring…
                          2-Step-Flow
                           Tomorrow

      M1   M2   M3   M4 M1   M2    M3   M4   M1     M2   M3   M4



                       Digital Content Management




                                  28
Situations are individual… and predictable!




                       29
Mood in everyday life
Average day, German adults 14 to 64 years

stressed        pleased         relaxed     cheerful       bored       melancholic         tired

 100%


  80%


  60%


  40%


  20%


   0%
        05:00   07:00   09:00     11:00   13:00    15:00   17:00   19:00   21:00   23:00   01:00

                                              30
Finding the Point of Relevance

•P.O.R. = Point of Relevance

  • When the target audience is in the right situation to have an
    open ear for our advertising message.

  • It is not a place (like the Point of Sale), it is a situation.



        The best time for a message is during or close to the
         specific POR., and the most appropriate media are
              those used during or close to the POR.



                                 31
Point of Relevance for Headache OTC brand
Target audience:
People who suffers frequently on headaches
     TV viewing                   Mood: Stress                        Listening to radio
   50%


   40%                                   POR
   30%


   20%


   10%


   0%
         05:00   07:00   09:00   11:00   13:00        15:00   17:00   19:00   21:00   23:00


                                                 32
P.O.R.: Finding the right moment for TV ads
Average weekday, German adults 14 to 64 years

Watching TV and being…

                                  …happy                   ...tired
   60%

   50%

   40%

   30%

   20%

    10%

    0%
      12:00     14:00     16:00     18:00       20:00   22:00    00:00

                                      33
Real Insights

•We have learned some lessons from qualitative and
ethnographic media research, so we know that people…
  • …do not think about media,
  • …they think about content, activities, routines,
                                                          !
    needs and gratifications.


So our research is consumer centric research, exploring
how media usage is part of the daily life of consumers,
finding out how media are represented in their minds




                                    34
For more details please see the conference paper




                          35
dirk.engel@umww.com

     Dirk Engel                                       Tel.:    + 49 - (0)69 – 79 404 - 110
     Head of Research
     Universal McCann Knowledge

                    Universal McCann GmbH, Speicherstraße 57-59, D 60327 Frankfurt

                                http://www.universalmccann.de


                       www.dirkengel.org
36
www.dirkengel.org

Real Insights

  • 1.
    Real Insights Navigating themedia world with consumer centric research Dirk Engel Universal McCann ESOMAR Conference „WM3 2008“ June 4th 2007, Budapest
  • 3.
    The media worldis changing… High Unlimited number reach of media Passive Acitve media consumption media usage 80‘s 90‘s 00‘s Limited Low number of reach media 3
  • 4.
    A certain feelingof insecurity in marketing Is our repertoire of communications able to face upcoming challenges? What is the best way to use research findings to improve marketing & media planning? 4
  • 5.
    Consumer centric research… My ABC1 Feelings My My Male Teenager Attitudes Brands 30-59 My My Needs Media Product Kunde Female Housewifes My My 20-49 Day in the Life Thoughts Consumer Traditional Approach Centric Approach 5
  • 6.
    …leads to newapproach in media planning Yesterday Today Target Target segmentation Consumer conflicts chances ideas Insights Communication strategy TV, radio, press etc. Mass media, online, events, sales promotion, PR, mobile, dialouge marketing, CRM, sponsorship, viral etc. Media plans Communication plans 6
  • 7.
    What we needfrom media research today • Data about usage of traditional and recently emerged media • Information on how target audiences react to below the line communication channels • Understanding of how people use media in their daily life • Insights into how consumers interact and communicate with each other • Variables, which are able to link findings from effectiveness research to robust survey data • …and last but not least: An idea of what the near future will bring to the fields of consumer behaviour and media usage 7
  • 8.
    New kind ofresearch is needed Traditional media studies Real insight studies • Huge sample size • Mulit media point of view, 360° • Accurate measurement of reach & • Qualitative information frequency for one medium • Linked to models of effectiveness • „Currency“, gold standard research & psychology • Base for intra media selection • Interesting stories, not only figures • But… • Input for strategic communication planning • …no multi-media point of view • Addition to syndicated research • …not consumer centric • …not flexible 8
  • 9.
    360° view onmedia usage Consumer Situation Activities Media Mood 9
  • 10.
    …needs new studies Consumer Situation Activities Media Mood A study for navigating today‘s media world 10
  • 11.
    Media in Mind™ •First international wave of Media in Mind™ in 1997 • Recent wave in Germany: June 2007 • Sample = 1,600 interviews • German adults, 14 to 64 years • Study design: Universal McCann • Fieldwork: TNS Infratest – Discussion of methodological issues: ~ please see the paper! 11
  • 12.
    The questionnaire •40 pagequestionnaire covering… • Media usage • Internet & computer • Mobility • Shopping • Consumption • Attitudes, values • Leisure • FutureView (by TNS Infratest) 12
  • 13.
    The diary •7-day-diary • Whole week: Monday to Sunday • Half hour intervals • Database of 11,200 days • Careful quality control guarantees complete & robust data 13
  • 14.
    Information measures Diary Mood Day of the week Activities Questionniare: Attention Demographics Place (high, medium, low) (home, work, OOH) Leisure, Lifestyle Consumption Attitudes Media: TV, radio, magazines, Company Newspapers, internet, (alone, with others, with kids) video/DVD, PC, books, music 14
  • 15.
    Input for strategy& marketing communications • Which is the best mix of ad media? • Which are the most effective time periods and days for advertising? • Which other communication channels are appropriate? • Which media are best to stimulate short-term sales because of reaching the target audience close to the purchase? • What information sources are valued the most and used for purchasing products? • How do activities like computer and video gaming affect the time budget of specific target audiences? • Which media, topics, products will become more relevant in the future’? (Based on research agency tests). 15
  • 16.
    How consumers copewith information overload? •Consumers are not overwhelmed by the today’s media output, they developed mechanisms to deal with it. • Three examples: • On psychological level = Selective attention management • On sociological level = Division of labor in information processing • Strategy for marketing communication = Finding the best moment to deliver relevant messages 16
  • 17.
    The importance ofattention management “Viewer attention to what is on the screen has a direct bearing on commercial perception and communication. The real TV value issue is attention and not zapping or liking.” How can we measure attention? Erwin Ephron 17
  • 18.
  • 19.
    Time spend onmedia in minutes German adults 14 – 64 years, n = 1.600 350 319 min. 328 min. 304 min. 300 255 min. 250 200 150 100 50 0 Adults 14-64 14-29 y 30-49y 50-64y years 19
  • 20.
    Share of mediaon total time spend on media German adults 14 – 64 years, n = 1.600 TV Radio Internet Newspapers Magazines Adults 14-64 years 42 % 33 % 15 % 8 % 2% 14-29 y 44 % 27 % 23 % 5 % 2% 30-49y 40 % 35 % 16 % 7 % 1% 50-64y 45 % 33 % 9% 11 % 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 20
  • 21.
    TV viewing &attention Average day, German adults 14 to 64 years TV with low Attention …with medium Attention …with high Attention 100% 80% 60% 40% 20% 0% 07:00 09:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00 01:00 21
  • 22.
    Time spend onmedia with high attention German adults 14 – 64 years, n = 1.600 350 319 min. 328 min. 304 min. 300 255 min. 250 200 150 81 min. 93 min. 100 73 min. 79 min. 50 0 Adults 14-64 14-29 y 30-49y 50-64y years 22
  • 23.
    Internet usage &attention Average day, German adults 14 to 64 years Internet with low Attention …with medium Attention …with high Attention 100% 80% 60% 40% 20% 0% 07:00 09:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00 01:00 23
  • 24.
    Share of Attention– Shift from TV to internet German adults 14 – 64 years, n = 1.600 TV Radio Internet Newspapers Magazines Adults 14-64 years 43 % 9% 32 % 14 % 2% 14-29 y 38 % 7% 44 % 8% 3% 30-49y 42 % 8% 34 % 13 % 2% 50-64y 46 % 12 % 19 % 20 % 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 24
  • 25.
    2-Step-Flow of communicationyesterday & today 30‘s - 50‘s 60‘s - 80‘s Today MEDIA MEDIA M1 M2 M3 M4 25
  • 26.
    Giving advice forspecific product categories German adults 14 – 64 years, n = 1.600 Female 19% Don't give any advice Male 21% 46% Food, cooking 21% 37% Entertainment, music, books 30% 34% Travelling, vacation 32% 11% Computer-Hardware und -Software 38% 10% Personal finance, investments 20% 0 5 10 15 20 25 30 35 40 45 50 26
  • 27.
    Preferred source ofinformation about cars German adults 14 – 64 years, n = 1.600 60 Opinion Leader 51% Advice giver Cars 50 47% 46% 42% 39% 40% 40 37% 31% 30 25% 20 19% 1st 1st 11% 10 7% 0 Magazines Word of Internet Newspapers TV Radio Mouth 27
  • 28.
    What the futurewill bring… 2-Step-Flow Tomorrow M1 M2 M3 M4 M1 M2 M3 M4 M1 M2 M3 M4 Digital Content Management 28
  • 29.
    Situations are individual…and predictable! 29
  • 30.
    Mood in everydaylife Average day, German adults 14 to 64 years stressed pleased relaxed cheerful bored melancholic tired 100% 80% 60% 40% 20% 0% 05:00 07:00 09:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00 01:00 30
  • 31.
    Finding the Pointof Relevance •P.O.R. = Point of Relevance • When the target audience is in the right situation to have an open ear for our advertising message. • It is not a place (like the Point of Sale), it is a situation. The best time for a message is during or close to the specific POR., and the most appropriate media are those used during or close to the POR. 31
  • 32.
    Point of Relevancefor Headache OTC brand Target audience: People who suffers frequently on headaches TV viewing Mood: Stress Listening to radio 50% 40% POR 30% 20% 10% 0% 05:00 07:00 09:00 11:00 13:00 15:00 17:00 19:00 21:00 23:00 32
  • 33.
    P.O.R.: Finding theright moment for TV ads Average weekday, German adults 14 to 64 years Watching TV and being… …happy ...tired 60% 50% 40% 30% 20% 10% 0% 12:00 14:00 16:00 18:00 20:00 22:00 00:00 33
  • 34.
    Real Insights •We havelearned some lessons from qualitative and ethnographic media research, so we know that people… • …do not think about media, • …they think about content, activities, routines, ! needs and gratifications. So our research is consumer centric research, exploring how media usage is part of the daily life of consumers, finding out how media are represented in their minds 34
  • 35.
    For more detailsplease see the conference paper 35
  • 36.
    dirk.engel@umww.com Dirk Engel Tel.: + 49 - (0)69 – 79 404 - 110 Head of Research Universal McCann Knowledge Universal McCann GmbH, Speicherstraße 57-59, D 60327 Frankfurt http://www.universalmccann.de www.dirkengel.org 36
  • 37.