Big media companies have traditionally relied on advertising revenue models but are struggling to capture shifting revenues to online and mobile advertising. Their control over distribution channels and use of regulations to limit competition allowed them to profit from scarce advertising space. However, new technologies are offering audiences more freedom of choice, empowering smaller content creators and challenging the business models of big media companies. To thrive in this new environment, media companies must focus more on exploring new opportunities rather than defending outdated models.
Mass communication involves messages distributed through mass media that can reach large, anonymous audiences. Mass media includes newspapers, magazines, television, radio, and the internet. Gatekeepers control the flow of information by selecting which stories to publish or broadcast. Mass communication can be described as a system where media companies supply content to satisfy audience demand in three markets: the consumer market for information, the advertising market, and the marketplace of ideas. Demand and supply interact in complex ways between these groups to determine what information and ideas are available.
The document introduces The Conversation Loop marketing platform, which was developed by Hakuhodo and Direct Partners to help brands adapt to a major communications shift where consumers now control brand messaging through social media. The platform uses a four-step process of listening to, learning from, analyzing, and engaging consumers based on data collected across various sources. It is presented as a solution to address both the threats and opportunities created by this shift, such as erosion of trust in advertising and a new wealth of consumer data, to help brands more profitably relate to consumers. The document provides an overview of the platform and its benefits through a case study and marketing audit approach.
IPA Advanced Exam_Response to Module 1_Thomas MouquotThomas Mouquot
The document discusses how the mobile landscape has changed media and advertising. It notes that consumers now expect instant access to information on their mobile devices. Advertisers must adapt to this mobile-first behavior by improving measurement and targeting across channels, and providing engaging content in photo and video formats. Agencies have developed new mobile-specific offerings, and use programmatic technology and data to target individuals. The rise of the Internet of Things will further change advertising by connecting more devices and providing more data points for analysis and targeting.
This document discusses the convergence of media, entertainment and technology. It covers several topics including:
1) How consumer electronics are becoming indispensable parts of everyday life and consumers are demanding more functions in single devices.
2) Examples of device convergence like mobile phones that have cameras, music players, and more.
3) Changes in how consumers access and interact with content through new media like increased control and participation.
4) Trends in various markets like music, cameras, TV, and gaming that show convergence across devices.
5) Challenges and opportunities that convergence presents for different players like content providers, device manufacturers, and network operators.
media economics are the economic policies and practices of media companies and disciplines including journalism and the news industry, film production, entertainment programs, print, broadcast, mobile communications, Internet, advertising and public relations.
Advertising and media are converging. The results will disrupt how companies must deploy their marketing efforts. Marketers, and their agency partners must converge their media efforts by combining social, corporate content, and advertising reach --or risk connecting with the fleeting customer.
Owned and earned media are vital to campaigns, helping to amplify and spread brand messages through the complex paths consumers follow across devices, screens and media. Advertising, or ‘paid’ media, has traditionally led marketing initiatives both online and off-. But advertising no longer works as effectively as it once did unless bolstered by additional marketing channels.
While consumers distinguish less and less between these channels, marketers remain specialized in one medium at the expense of the others. Rather than allow campaigns to be driven by paid media, marketers must now develop scale and expertise in owned and earned media to drive effectiveness, cultivate creative ideas, assess customer needs, cultivate influencers, develop reach, achieve authenticity and cut through clutter.
”The Converged Media Imperative,” a new research report co-authored by Altimeter Group Analysts Rebecca Lieb and Jeremiah Owyang, explores today's media landscape, and provides a success checklist and actionable recommendations for converged media deployment.
This document provides an overview of advertising, including definitions, characteristics, types, roles, functions, key players, evolution, issues, laws, and ethics. Advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. It aims to design persuasive communication through mass media to promote brands, products, and services. The document also outlines the characteristics of effective advertising, different types of advertising, and the roles advertising plays in marketing, communication, the economy, and society.
Discuss the issues raised by media ownership in the production and exchange o...Keith Day
The document discusses issues related to media ownership in the newspaper industry. It notes that falling newspaper sales are forcing companies to reconsider their business models as audiences increasingly access news online. While large media conglomerates own multiple platforms, this concentration of power and influence raises concerns. The traditional newspaper model is flawed as audiences now demand instant, online news access. For newspapers to survive, they must adapt to new media and provide customized content and services audiences want.
Mass communication involves messages distributed through mass media that can reach large, anonymous audiences. Mass media includes newspapers, magazines, television, radio, and the internet. Gatekeepers control the flow of information by selecting which stories to publish or broadcast. Mass communication can be described as a system where media companies supply content to satisfy audience demand in three markets: the consumer market for information, the advertising market, and the marketplace of ideas. Demand and supply interact in complex ways between these groups to determine what information and ideas are available.
The document introduces The Conversation Loop marketing platform, which was developed by Hakuhodo and Direct Partners to help brands adapt to a major communications shift where consumers now control brand messaging through social media. The platform uses a four-step process of listening to, learning from, analyzing, and engaging consumers based on data collected across various sources. It is presented as a solution to address both the threats and opportunities created by this shift, such as erosion of trust in advertising and a new wealth of consumer data, to help brands more profitably relate to consumers. The document provides an overview of the platform and its benefits through a case study and marketing audit approach.
IPA Advanced Exam_Response to Module 1_Thomas MouquotThomas Mouquot
The document discusses how the mobile landscape has changed media and advertising. It notes that consumers now expect instant access to information on their mobile devices. Advertisers must adapt to this mobile-first behavior by improving measurement and targeting across channels, and providing engaging content in photo and video formats. Agencies have developed new mobile-specific offerings, and use programmatic technology and data to target individuals. The rise of the Internet of Things will further change advertising by connecting more devices and providing more data points for analysis and targeting.
This document discusses the convergence of media, entertainment and technology. It covers several topics including:
1) How consumer electronics are becoming indispensable parts of everyday life and consumers are demanding more functions in single devices.
2) Examples of device convergence like mobile phones that have cameras, music players, and more.
3) Changes in how consumers access and interact with content through new media like increased control and participation.
4) Trends in various markets like music, cameras, TV, and gaming that show convergence across devices.
5) Challenges and opportunities that convergence presents for different players like content providers, device manufacturers, and network operators.
media economics are the economic policies and practices of media companies and disciplines including journalism and the news industry, film production, entertainment programs, print, broadcast, mobile communications, Internet, advertising and public relations.
Advertising and media are converging. The results will disrupt how companies must deploy their marketing efforts. Marketers, and their agency partners must converge their media efforts by combining social, corporate content, and advertising reach --or risk connecting with the fleeting customer.
Owned and earned media are vital to campaigns, helping to amplify and spread brand messages through the complex paths consumers follow across devices, screens and media. Advertising, or ‘paid’ media, has traditionally led marketing initiatives both online and off-. But advertising no longer works as effectively as it once did unless bolstered by additional marketing channels.
While consumers distinguish less and less between these channels, marketers remain specialized in one medium at the expense of the others. Rather than allow campaigns to be driven by paid media, marketers must now develop scale and expertise in owned and earned media to drive effectiveness, cultivate creative ideas, assess customer needs, cultivate influencers, develop reach, achieve authenticity and cut through clutter.
”The Converged Media Imperative,” a new research report co-authored by Altimeter Group Analysts Rebecca Lieb and Jeremiah Owyang, explores today's media landscape, and provides a success checklist and actionable recommendations for converged media deployment.
This document provides an overview of advertising, including definitions, characteristics, types, roles, functions, key players, evolution, issues, laws, and ethics. Advertising is defined as any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. It aims to design persuasive communication through mass media to promote brands, products, and services. The document also outlines the characteristics of effective advertising, different types of advertising, and the roles advertising plays in marketing, communication, the economy, and society.
Discuss the issues raised by media ownership in the production and exchange o...Keith Day
The document discusses issues related to media ownership in the newspaper industry. It notes that falling newspaper sales are forcing companies to reconsider their business models as audiences increasingly access news online. While large media conglomerates own multiple platforms, this concentration of power and influence raises concerns. The traditional newspaper model is flawed as audiences now demand instant, online news access. For newspapers to survive, they must adapt to new media and provide customized content and services audiences want.
Tapping into current trends in PublicRelationsBolaji Okusaga
This document discusses how small businesses can tap into current trends in public relations. It outlines how public relations has shifted from mass media messaging to more targeted "you media". The proliferation of new media platforms has empowered stakeholders to become more involved in the communication process. Rather than a one-size-fits-all approach, small businesses need to engage stakeholders through personalized messaging on various new media channels to build relationships.
The document discusses business models and strategies for social and web media. It outlines several objectives: examining reasons for media financial recession; proposing models for sustainable competitive advantage through micropayments, new advertising approaches, and innovative distribution; and exploring new economic strategies like long tail economics, tipping points, crowd-sourcing, and mesh company strategies. The document also reviews relevant literature and outlines an agenda covering topics like the increasing influence of social media and decreasing influence of old media.
Lynotech aims to transform user data from premium publishers into knowledge through advanced processing to enhance its value. This will help publishers design strategies based on user insights, create higher-value targeted ads, and capture more market value by reducing intermediaries. Interviews found local publishers could target local advertisers better, while national publishers face competition. Quick action is needed but privacy and proprietary data are priorities. Strategies suggest positioning Lynotech as an audience tool initially to avoid resistance, and rapidly adding publishers to establish standardization. Customer surveys found interest from two potential customers representing the small premium publisher market.
Social Media Whitepaper Web Supplier 11 09Mark Moreno
The document defines the social media opportunity for foodservice suppliers. It notes that while social media is a clear opportunity for consumer-facing businesses, the opportunity is more refined for suppliers and must be focused on specific audiences like chefs or independent restaurant owners. It discusses how suppliers can use social media to gain consumer insights and target communications to specific business-to-business groups. The document also provides guidance on empowering employees in social media while establishing clear guidelines.
Medicine Avenue 2 The History of Medical Advertising from 1990 - 2008. Chapter - Digital Communications Emerge; written by Tim Pantello (Tribal DDB Worldwide) and Mark Bard (President of Manhattan Research)
This document discusses concentration of media ownership and its effects. It notes that progressively fewer individuals or organizations control increasing shares of mass media. Large media conglomerates dominate globally and a small number control most media within nations. Media mergers allow companies to buy other companies for more power and profits, concentrating ownership further. This concentration can negatively impact competition, diversity of viewpoints, and net neutrality. Deregulation has increased consolidation by removing barriers, though critics argue this reduces the quality and diversity of information provided to the public.
Emotions reader the marketing of emotions in advertisingguest0e39643
This document discusses a shift in advertising from rational appeals to consumers' emotions. It argues that advertising has moved from promoting products' functional features through rational arguments, to attempting to evoke sentimental experiences and emotions through more interactive and sensory-stimulating media. Specifically, it claims that advertisers now aim to customize marketing messages and target consumers' private experiences with brands in order to make brand relationships more ambiguous and difficult to scrutinize publicly. The document analyzes how this shift allows advertisers to expand what they can offer corporate clients and reduce accountability.
The broadcast industry continues evolve. As a result the vendors serving this dynamic industry are also expanding their capabilities to include professional services. This white paper highlights the market trends and challenges facing broadcast vendors.
Building a Connected Brand: How Brands Become Publishers in a Real-Time Marke...iCrossing
Brands, media, and audiences used to have distinct roles in the marketing relationship. Today those roles overlap, creating new opportunities and expectations. People are now their own publishers of opinions, experiences, and preferences. They share those sentiments with each other in social spaces. Media properties are now playing host to serious conversations, with readers functioning as active contributors to the story. Brands are realizing that audiences are demanding more of them than simply shouting about their products and services — they are now expected to share back. As these forces blur together, the roles and expectations for brands, media and audiences will continue to change. Find out more at http://www.icrossing.com
Prepping for the New Age of Information Services, Media and EntertainmentCognizant
As digital media begins to dominate all segments of the IME industry, organizations will need to restructure their revenue and distribution methods, as well as their global strategies and organizational models.
This document discusses social media and its impact. It touches on how social media has enabled conversation on a global scale. It also notes that principles of journalism remain important despite the social media revolution and changing ways people receive news and information. Statistics are presented on smartphone usage trends, showing increasing adoption rates across age groups.
Is the SEC banning social networking? (No.)Kenny Smith
Thin overview slides used for the "Is the SEC banning Social Networking?" presentation at the Tweeting on the Sidelines session of the Broadcast Education Association, Las Vegas, NV, April, 16, 2010.
This document provides guidance on writing effective headlines for various media. It discusses the goals and tips for newspaper headlines, including using active voice, questions seldom working, and not repeating the lead. For online headlines, it emphasizes using keywords that people would search for and writing headlines that are clear, concise and tell as much of the story as possible in 68 characters or less to generate clicks. It also notes the importance of search engine optimization factors for online headlines.
The document discusses emerging trends in technology and media consumption. It notes that content is becoming more of a service, experience, and product. Technology is changing how stories are told by enabling more immersive experiences across multiple formats and delivery methods. Consumption is shifting towards being more mobile with digital goods, while the environments people experience media in are trending smaller from large communal spaces to individual and small group settings.
Developing stories that stick -- @kennysmith in conjunction with @vergepipe_m...Kenny Smith
Integrating Social Media into your overall mix puts content at the forefront. Creating content that resonates and connects with donors and alumni has to be planned, interactive and meaningful. You have to think like a reporter, Public Relations pro, AND a marketer in order to develop a personality that is authentic, yet consistent with the institution’s goals. This session will guide you through cultivating better stories from prospects and donors and using those to expand your network.
We're using it more and more. Here are some tips on how we can start to make sure we're using the right, legitimate stuff.
A presentation prepared for the Alabama Press Association Winter Conference, 2015.
This document discusses social media practices and provides resources for the class "Social Media Practices JMC 201" taught by Kenny Smith in spring 2011. It includes Kenny Smith's website, Twitter, and LinkedIn profiles as well as links to articles about topics like the Rathergate scandal, earthquakes in China and Egypt, and maintaining principles of journalism in public relations and advertising. It also discusses understanding audiences, engaging through curation, and identifying influencers on social media.
why do some teams perform and others fail? Team effectiveness research has highlighted key actions you can take to enhance team performance. While many are obvious, they are uncommon, so the canvas makes them actionable.
Tapping into current trends in PublicRelationsBolaji Okusaga
This document discusses how small businesses can tap into current trends in public relations. It outlines how public relations has shifted from mass media messaging to more targeted "you media". The proliferation of new media platforms has empowered stakeholders to become more involved in the communication process. Rather than a one-size-fits-all approach, small businesses need to engage stakeholders through personalized messaging on various new media channels to build relationships.
The document discusses business models and strategies for social and web media. It outlines several objectives: examining reasons for media financial recession; proposing models for sustainable competitive advantage through micropayments, new advertising approaches, and innovative distribution; and exploring new economic strategies like long tail economics, tipping points, crowd-sourcing, and mesh company strategies. The document also reviews relevant literature and outlines an agenda covering topics like the increasing influence of social media and decreasing influence of old media.
Lynotech aims to transform user data from premium publishers into knowledge through advanced processing to enhance its value. This will help publishers design strategies based on user insights, create higher-value targeted ads, and capture more market value by reducing intermediaries. Interviews found local publishers could target local advertisers better, while national publishers face competition. Quick action is needed but privacy and proprietary data are priorities. Strategies suggest positioning Lynotech as an audience tool initially to avoid resistance, and rapidly adding publishers to establish standardization. Customer surveys found interest from two potential customers representing the small premium publisher market.
Social Media Whitepaper Web Supplier 11 09Mark Moreno
The document defines the social media opportunity for foodservice suppliers. It notes that while social media is a clear opportunity for consumer-facing businesses, the opportunity is more refined for suppliers and must be focused on specific audiences like chefs or independent restaurant owners. It discusses how suppliers can use social media to gain consumer insights and target communications to specific business-to-business groups. The document also provides guidance on empowering employees in social media while establishing clear guidelines.
Medicine Avenue 2 The History of Medical Advertising from 1990 - 2008. Chapter - Digital Communications Emerge; written by Tim Pantello (Tribal DDB Worldwide) and Mark Bard (President of Manhattan Research)
This document discusses concentration of media ownership and its effects. It notes that progressively fewer individuals or organizations control increasing shares of mass media. Large media conglomerates dominate globally and a small number control most media within nations. Media mergers allow companies to buy other companies for more power and profits, concentrating ownership further. This concentration can negatively impact competition, diversity of viewpoints, and net neutrality. Deregulation has increased consolidation by removing barriers, though critics argue this reduces the quality and diversity of information provided to the public.
Emotions reader the marketing of emotions in advertisingguest0e39643
This document discusses a shift in advertising from rational appeals to consumers' emotions. It argues that advertising has moved from promoting products' functional features through rational arguments, to attempting to evoke sentimental experiences and emotions through more interactive and sensory-stimulating media. Specifically, it claims that advertisers now aim to customize marketing messages and target consumers' private experiences with brands in order to make brand relationships more ambiguous and difficult to scrutinize publicly. The document analyzes how this shift allows advertisers to expand what they can offer corporate clients and reduce accountability.
The broadcast industry continues evolve. As a result the vendors serving this dynamic industry are also expanding their capabilities to include professional services. This white paper highlights the market trends and challenges facing broadcast vendors.
Building a Connected Brand: How Brands Become Publishers in a Real-Time Marke...iCrossing
Brands, media, and audiences used to have distinct roles in the marketing relationship. Today those roles overlap, creating new opportunities and expectations. People are now their own publishers of opinions, experiences, and preferences. They share those sentiments with each other in social spaces. Media properties are now playing host to serious conversations, with readers functioning as active contributors to the story. Brands are realizing that audiences are demanding more of them than simply shouting about their products and services — they are now expected to share back. As these forces blur together, the roles and expectations for brands, media and audiences will continue to change. Find out more at http://www.icrossing.com
Prepping for the New Age of Information Services, Media and EntertainmentCognizant
As digital media begins to dominate all segments of the IME industry, organizations will need to restructure their revenue and distribution methods, as well as their global strategies and organizational models.
This document discusses social media and its impact. It touches on how social media has enabled conversation on a global scale. It also notes that principles of journalism remain important despite the social media revolution and changing ways people receive news and information. Statistics are presented on smartphone usage trends, showing increasing adoption rates across age groups.
Is the SEC banning social networking? (No.)Kenny Smith
Thin overview slides used for the "Is the SEC banning Social Networking?" presentation at the Tweeting on the Sidelines session of the Broadcast Education Association, Las Vegas, NV, April, 16, 2010.
This document provides guidance on writing effective headlines for various media. It discusses the goals and tips for newspaper headlines, including using active voice, questions seldom working, and not repeating the lead. For online headlines, it emphasizes using keywords that people would search for and writing headlines that are clear, concise and tell as much of the story as possible in 68 characters or less to generate clicks. It also notes the importance of search engine optimization factors for online headlines.
The document discusses emerging trends in technology and media consumption. It notes that content is becoming more of a service, experience, and product. Technology is changing how stories are told by enabling more immersive experiences across multiple formats and delivery methods. Consumption is shifting towards being more mobile with digital goods, while the environments people experience media in are trending smaller from large communal spaces to individual and small group settings.
Developing stories that stick -- @kennysmith in conjunction with @vergepipe_m...Kenny Smith
Integrating Social Media into your overall mix puts content at the forefront. Creating content that resonates and connects with donors and alumni has to be planned, interactive and meaningful. You have to think like a reporter, Public Relations pro, AND a marketer in order to develop a personality that is authentic, yet consistent with the institution’s goals. This session will guide you through cultivating better stories from prospects and donors and using those to expand your network.
We're using it more and more. Here are some tips on how we can start to make sure we're using the right, legitimate stuff.
A presentation prepared for the Alabama Press Association Winter Conference, 2015.
This document discusses social media practices and provides resources for the class "Social Media Practices JMC 201" taught by Kenny Smith in spring 2011. It includes Kenny Smith's website, Twitter, and LinkedIn profiles as well as links to articles about topics like the Rathergate scandal, earthquakes in China and Egypt, and maintaining principles of journalism in public relations and advertising. It also discusses understanding audiences, engaging through curation, and identifying influencers on social media.
why do some teams perform and others fail? Team effectiveness research has highlighted key actions you can take to enhance team performance. While many are obvious, they are uncommon, so the canvas makes them actionable.
How to Identify Successful Content Strategiesfcrehan
A short presentation on how Forrester can help define a successful digital content strategy. Whether you are a Brand or Media, Telco or Retail company, the Forrester Content Strategy could be for you.
Screen media is a fast-growing new advertising sector that combines elements of television, digital media, and point-of-sale advertising. The Screen Media India conference in Mumbai will provide an opportunity for organizations in India to learn how they can benefit from this new medium. Screen media is expected to be widely adopted by retailers and other businesses to enhance customer experiences. It will also be used in government, transportation, and other sectors in India. The conference will allow participants to learn about best practices and opportunities in the growing Indian screen media market.
Screen media is a fast-growing new advertising sector that combines elements of television, digital media, and point-of-sale advertising. The Screen Media India conference in Mumbai will provide an opportunity for organizations in India to learn how they can benefit from this new medium. Screen media is expected to be widely adopted by retailers and other businesses to enhance customer experiences. It will also be used in government, transportation, and other sectors. The conference will allow participants to learn about best practices and opportunities in India's developing screen media market.
Digital Media for Governments: Reaching Audiences in an Age of Fragmentation ...GroupM Worldwide
Digital media has fragmented audiences across many channels, making it difficult for governments to reach mass audiences with their messages. However, digital media also provides solutions through techniques like audience buying, which uses people's online behaviors to precisely target them. Governments can now reach specific audiences more efficiently and cost-effectively than traditional media, while also improving the effectiveness of their communications. Audience buying allows governments to engage citizens with important information at the right time and place to influence decisions and achieve policy goals.
Finding Your Place in the New World of Communications, Media and EntertainmentCognizant
With the dramatic changes in the communications, media and entertainment industry, distribution models are forcing these companies to participate in network platforms, where they can contribute differentiated value and generate meaningful returns.
Brands and engaging in the art of conversation finalhessiej.com
The document discusses the evolution of social media and its impact on marketing. It notes that with the rise of Web 2.0, consumers now have more control over media consumption and are participating in conversations rather than just passively receiving information. This has required brands to adapt their marketing strategies to focus more on engagement over interruption and to join conversations rather than just push messages. The document provides statistics on social media usage and outlines how Isobar can help brands navigate the complex social media landscape.
The document discusses the changing communications landscape and what agencies must do to succeed. Specifically:
- The marketing world has become more dynamic with new technologies and empowered consumers. Agencies must constantly adapt to remain relevant.
- Only the best agencies will survive as brands gain new capabilities. To thrive, agencies need tools to monitor real-time conversations, control broad communication channels, and efficiently produce quality content.
- Key factors for agency success include having measurement tools, owning publication relationships, and developing a newsroom or freelancer model to produce large volumes of responsive content.
This document discusses strategies for effective multimedia advertising campaigns. It notes that with increased media fragmentation, using multiple channels is necessary to reach all parts of a target audience. There are benefits to multimedia campaigns, such as extending reach, creating synergistic media multiplier effects, communicating richer messages, and sustaining campaign impact over time. The document provides examples and analysis demonstrating how TV combined with print, online, radio, or outdoor advertising can significantly increase awareness, consideration, and purchase intent among consumers compared to single channel campaigns. It distinguishes between two forms of multimedia effects: "magnify," using multiple channels simultaneously to surround consumers with integrated messaging, and "resonate," using cheaper media to prolong the impact of more expensive initial advertising.
Who owns what in the UK Media (circa 2013)? Murdoch, Desmond, the BBC - what is the impact of their ownership of multiple brands and outlets?
Also a brief look at the history behind this focusing on the late 1980s (Wapping, ITV franchises, etc)
Lecture 1 introduction, key themes and outlineJohnMillsonline
This document provides an introduction to a module on marketing principles for media businesses. It discusses how the media landscape has fragmented across offline, broadcast, and online platforms. Marketers must understand concepts like market segmentation, demographics, and branding across multiple platforms. The module will examine how marketing establishes effectiveness for media organizations in an online environment. It will combine theory and case studies to provide insights into current media and marketing practices. Key questions for the module include how publishers exist in a multiplatform world and the impact of convergence on traditional and new media. The document emphasizes that media marketers must navigate constant disruption in fragmented markets.
Into the Mainstream: Influencer Marketing in Societyrun_frictionless
TAKUMI surveyed over 3,500 consumers, marketers, and influencers across the UK, US, and Germany to uncover the latest trends in the sector. The report ‘Into the mainstream: Influencer marketing in society’, uncovered divided opinions on what consumers want to see and what brands are willing to engage with influencers on.
https://runfrictionless.com/b2b-white-paper-service/
1) Journalism is growing closer to marketing as media firms rely more on the marketplace and advertising revenue makes up 60-80% of total revenue for many outlets.
2) There are tensions between the market theory of news production, which prioritizes factors like advertiser interests, and the journalistic theory, which prioritizes newsworthiness and audience importance.
3) As news becomes more of a commodity, journalistic integrity can be compromised by the need to maximize profits, leading to potential issues like bias towards advertisers.
The document discusses how changes in technology have led to changes in how people consume media. A new mobile-social-media universe is on the rise, while traditional big media struggles. It notes that old media will not die but will shrink, and new and old media will become equal. It explores how these changes impact media experiences, consumer behavior, and the effect on marketing campaigns. People now decide individually when, where, and how they consume media using various platforms.
This document provides a summary of discussions from the New Media Academic Summit on how digital media is changing organizational communications strategies. Key points include:
- Digital media has dispersed authority from traditional media to new open platforms and peer networks, requiring organizations to engage stakeholders across multiple channels.
- Organizations need to go beyond paid and earned media to also embrace "engagement media" like social networks to directly engage with audiences.
- Public relations now has an opportunity to guide overall communications strategy and ensure messaging is distributed effectively through various owned, paid, and earned digital channels.
- The new approach is called "public engagement" - advancing shared interests through interdependent relationships across channels in this era of continuous partial attention from
Chapter17In This Chapter, We Will Address the Fo.docxmccormicknadine86
Ch
ap
ter
17
In This Chapter, We Will Address
the Following Questions
1. What is the role of marketing communications?
2. How do marketing communications work?
3. What are the major steps in developing effective communications?
4. What is the communications mix, and how should it be set?
5. What is an integrated marketing communications program?
Ocean Spray has revitalized its brand
through extensive new product develop-
ment and a thoroughly integrated modern
marketing communications program.
PART 7 Communicating Value
Chapter 17 | Designing and Managing Integrated Marketing Communications
Chapter 18 | Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations
Chapter 19 | Managing Personal Communications: Direct and Interactive Marketing, Word of Mouth, and Personal Selling
Modern marketing calls for more than developing a good product, pricing it
attractively, and making it accessible. Companies must also communicate with their present and
potential stakeholders and the general public. For most marketers, therefore, the question is not
whether to communicate but rather what to say, how and when to say it, to whom, and how often.
Consumers can turn to hundreds of cable and satellite TV channels, thousands of magazines and
newspapers, and millions of Internet pages. They are taking a more active role in deciding what
communications they want to receive as well as how they want to communicate to others about
the products and services they use. To effectively reach and influence target markets, holistic
marketers are creatively employing multiple forms of communications. Ocean Spray—an agricultural
cooperative of cranberry growers—has used a variety of communication vehicles to turn its sales
fortunes around.
Facing stiff competition, a number of adverse consumer trends, and nearly a decade of
declining sales, Ocean Spray COO Ken Romanzi and Arnold Worldwide decided to
“reintroduce the cranberry to America” as the “surprisingly versatile little fruit that
supplies modern-day benefits,” through a true 360-degree campaign that used all
facets of marketing communications to reach consumers in a variety of settings. The
intent was to support the full range of products—cranberry sauce, fruit juices, and dried cranberries
in different forms—and leverage the fact that the brand was born in the cranberry bogs and
remained there still. The agency decided to tell an authentic, honest, and perhaps surprising story
dubbed “Straight from the Bog.” The campaign was designed to also reinforce two key brand bene-
fits—that Ocean Spray products tasted good and were good for you. PR played a crucial role.
Miniature bogs were brought to Manhattan and featured on an NBC Today morning segment.
A “Bogs across America Tour” brought the experience to Los Angeles,
Chicago, and even London. Television and print advertising featured
two growers (depicted by actors) standing waist-deep in a bog and
talking ...
Altimeter: The Converged Media ImperativeApril Digital
The document summarizes key findings from a report on how brands must integrate paid, owned, and earned media, which are converging due to changes in consumer behavior and media consumption. It finds that while the integration of different media types is important, the marketing ecosystem remains fragmented. Brands organize themselves into silos that prevent converged strategies. Agencies also specialize in individual media channels rather than integrating them. Successful converged media will require better internal collaboration within brands and between brands and their agency partners.
The document summarizes key findings from a report on how brands must integrate paid, owned, and earned media, which are converging due to changes in consumer behavior and media consumption. It finds that while the integration of different media types is important, the marketing ecosystem remains fragmented. Brands organize themselves into silos that prevent converged strategies. Agencies also specialize in individual media channels rather than integrating them. Overall, the convergence of media is still immature, but brands that bring together paid, owned, and earned media will have advantages over those that do not.
Price is not a number - the secrets of pricingNevo Hadas
This document discusses strategic pricing concepts and strategies. It covers determining optimal price based on perceived customer value rather than just costs. Pricing strategies discussed include value pricing for new products, using price to signal quality, and pricing segmentation to capture different customer values. Behavioral pricing concepts like framing, anchoring, and default bias are also covered, along with pricing power, testing price, and considering lifetime customer value.
My slides from the VAS Africacom conference. The call was for people building any form of value added service to be more focused on the users requirements, especially as the power of operators is decreasing.
design in the digital economy - the billion rand featureNevo Hadas
The digital economy has more to do with people and less to do with technology. This talk I gave at the IT Web digital economy conference discussed the impact of design thinking, CX, UX and behavioural psychology on business models. The key point is that unless you change users behaviour, your business model and business plan are nothing but powerpoint and excel.
Mobile payments & the billion rand featureNevo Hadas
Mobile Payments are starting to make a significant impact with consumers. While the benefits are clear, a larger question is how they effect user behaviour and how these changes impact the industries supporting mobile payments. This research looks at the industry using design thinking and UX methodologies to uncover impacts of change on the restaurant industry.
the opportunity for small businesses to take advantage of the growth of internet connectivity in south africa is creating a revolution. the presentation provides stats and hints as to how to achieve online success as a SME
Traditional media utilises the concept of journalists and editors (sub editors etc) to stratify the organization and delineate control. however, very often these titles carry a lot of baggage with them that may inhibit working in a "new" media environment where collation or production of experiences is more relevant.
1. Traditional big media businesses are struggling in the new advertising landscape due to technological changes that have disrupted their business models.
2. The internet has eroded barriers to entry and increased competition by allowing anyone to become a media company and reach audiences directly.
3. Online advertising enables more targeted and data-driven advertising, reducing waste and increasing effectiveness compared to traditional media models.
The document discusses economic value pricing, which is based on pricing a product at or below a competitor's price plus the additional value it provides to customers. It notes some reasons for pricing below a product's economic value, including uncertainty over benefits, newness, temporary discounts, and large purchases. The document also discusses using economic value pricing to evaluate if a product or advertising is priced correctly, estimating price elasticities, ways to improve pricing analysis, pricing along a demand curve to different customer groups, product and customer-based segmentation models, and threats to pricing power like substitution.
I dont want to buy what you have to sellNevo Hadas
This document discusses opportunities in the digital publishing market and outlines some next steps. It analyzes revenue models for traditional advertising, platforms, content, and audience data. It also provides a high-level view of the online advertising technology ecosystem and examines how to optimize audience value. Finally, it notes the importance of people, culture, and budgets, and acknowledges that strategies must evolve with changing market conditions.
Radio 3.0 radio and digital in the developing worldNevo Hadas
1) Radio is facing challenges from new digital platforms but can adapt by becoming "Radio 3.0" and embracing the internet and mobile.
2) Radio still has growth potential in Africa by targeting the expanding middle class and increased connectivity.
3) To succeed, radio must know its audience deeply through research, use multiple platforms to engage listeners longer, and position itself as supporting new media instead of competing directly.
This is a copy of the presentation i gave in Cape Town. the presentation is a Microsoft advertising presentation that shows the impact of rich media and that measuring only clickthroughs doesnt show the entire picture.
1. Starving at
the feast.
WHY BIG MEDIA COMPANIES ARE FAILING TO CAPTURE THE SHIFT IN
ADVERTISING REVENUES.
by Nevo Hadas
HEAD OF MEDIA CONVERGENCE, KAGISO MEDIA
2. Never before has so much media been seeing traditional media companies fail,
consumed and created, by so many. We even while their industry booms. The
are entering a media boom. question of “what business are you in” is
ever more relevant to media businesses
This boom, however, requires a significant
today, as items that held value in the past
shift in media business models to fit the
rapidly become commoditized and price
new paradigms of production and
points are threatened by the concept of
consumption. As with other historical
“free”.
technological shifts, we are moving away
from an economy of “scarcity” of media to One of the impacted business models is
an economy of plenty. However, we are advertising supported media. Most media
businesses since the 1940’s have based
their income model on the availability of
advertising revenue. Like media
consumption, advertising revenue will also
boom; but how this takes form may
change.
We are seeing the rapid growth in online,
and soon, mobile advertising. New
freemium models for content purchases
and cost per click advertising are
redefining how advertisers and consumers
perceive value. Big media businesses,
which for a long time have utilized control
to impact markets, are now threatened by
the freedom of choice that new
technologies offer their audience.
But is it possible that new technology,
rather than spelling the end of media, can
bring about a new era? New advertising
models that are beneficial to advertiser,
consumer and media owner will be
possible. Greater variety and choice will
demand higher quality content, benefitting
the entire value chain from producers to
consumers of content. To thrive, the
media industry needs to spend more
time looking at new opportunities and
less defending models of the past.
3. but is often more visible in this
History of media in industry due to the influence that
three paragraphs. media holds. We have termed these
businesses “Big Media” and they
The concept of “mass media” as we control much of today’s traditional
know it is relatively new. The first media structures.
newspaper was published in England
in 1620 but only became “mass” The economics of Big
media around the 1830’s. Radio
began in the 1920’s and TV in the Media.
1940’s. All in all, the entire industry is
less than 200 years old and was It is important to understand that, due
made possible by the industrial to its political influence and power,
revolution and the printing press. mass media is highly regulated. Big
Media have used this to their
Each of the technological innovations advantage by limiting competitors,
that followed -- the printing press, thus limiting the number of media
radio, television -- led to a boom that options available to audience. Limited
made not only new platforms but all competition and large audience
of the previous ones more valuable. numbers inevitably equal high levels
Why? Because new technology of profitability due to high prices.
unleashes a large amount of benefit to
society and the economy as a whole. Media markets that have rapidly
It is hard to imagine the consumer deregulated have dramatically
driven economic boom that started in reduced profitability for the key media
the 1950’s without the advertising that players in them, even though the
promoted it. It can be construed that market overall has grown.
a strong symbiosis exists between
advertising, the consumption choices The music and film industries are
people make and thus overall different, however, as their position is
economic stimulus. not regulated. That said, they have
used copyright law and distribution
As there are tremendous advantages agreements as protective tools to
to scale, the media industry has control the distribution of media.1
rapidly become controlled by
conglomerates, many of them The most critical tools used by mass
invested in a variety of media. This is media to protect their market power
not a phenomenon unique to media, are:
1It was the record industry that first fought against copyright in the law courts as they saw it
hurting the then emerging record and gramophone market.
3
4. Distribution Frequencies and distribution economies to reach
markets.
Imperfect information The selection of data for buyer decision making.
Scarcity There is a limited quantity of advertising space and
ways to reach an audience.
Distribution is power. audience or consumer to engage with
content is through the media
Big Media has control of the airwaves company and their selection. As Big
(or cable) via their broadcast licenses. Media is about mass consumption,
Print, music and the movies have the decision for what is “good” and
scale and physical distribution to do “bad” is often made to fit the lowest
the same for them. common denominator.
Control of distribution provides This makes it very hard for small
significant market power as you can content providers to get into the
limit access. The ability to grant or system and develop an audience as
deny access has always been a they have no cost efficient way to
strategic position as far back as access the market. The high cost of
Leonidas at Thermopylai2. It provides alternative access to audience
significant leverage on resources ensures that no competitors can
applied and thus profit. In other easily enter the marketplace, thus
words, if you want to reach 6 million further maintaining the limited number
people in a specific market segment of competitors and the concentration
and I control access to those people, I of audience with big media.
am in a strong negotiating position. If
I have a small competitor set, my Big Media uses its size to engender
position is protected as, assuming trust via their own marketing. By
sufficient demand in the marketplace, being pervasive in a way only scale
it is in none of my competitors’ allows, they promote their businesses
interests to significantly undercut and content offering at no cost, which
prices. is a significant strategic advantage
over all other industries. The bigger
Control of distribution also equals your audience is, or the more limited
control of what reaches the audience. the selection of media in that
The distribution channels are tightly category, the more powerful that tool
held and thus the only way for the becomes and the harder it is for new
entrants to gain a substantial footprint
in the market.
2Known in popular culture via the movie “300”. Leonidas held the Thermopylai pass to stop the
Persian advance into Greece.
4
5. campaigns tremendously. Thus, they
Imperfect information. know that advertising works, but
cannot specifically say what
The other key component for advertising works best.
advertising supported media is the
paucity of measurement available in For example, in the newspaper
traditional media. Most research is business at the moment (Dec 2009)
based on a small subset of audience Rupert Murdoch is publicly blaming
which is then extrapolated out to the internet and search for the demise
provide a view of the whole market. of print newspapers. However, if we
It’s a well known fact that the unpack the business model for
measurement tools for traditional newspapers we see that it
media are considered to be imperfect, consciously utilises wastage and
but as long as everybody is imperfect imperfect information to capture a
we accept that the big picture is higher return from advertisers.
generally correct.
Newspapers are sold on readership. A
This means that, as an advertiser, you reader is a multiple of the circulation
cannot be certain as to how your of the newspaper (the number of
advertising is performing without a newspapers printed and sold or
number of complex measurements in handed out). Let us assume that 3
your fulfillment mechanisms. Most people on average read a newspaper
advertisers do not do this as that and that a newspaper has around 100
would push up the cost of the pages including inserts. Each page
5
6. represents the opportunity to sell enough” for the majority. This also
some advertising. That means that for relates to music albums.
each copy sold we are assuming a
potential of 300 page views. We don’t Although it is rare for somebody to
know, however, if the reader actually love all the songs of a band’s album,
reads all the pages. They may just be the record industry’s multi-song
interested in the business section or album format is based on the delivery
just in sports. All the newspaper mechanism, i.e. an album, rather than
business has to sell, however, is an the actual value of the songs. The
estimate. We therefore have a same can be said for pay TV channel
business model based on imperfect bouquets and for most forms of
information. bundled pay broadcasting.
As with all imperfect systems, Big
Media behaves in ways that are either
Scarcity.
inconvenient to its audience or even
dishonest to “cheat” the Where there is a physical limit to
measurement of their audience. advertising air-time on television,
Whether it is “bulking”3 by print radio and print space, there will be
publications, or the repetition of a upward pressure on the price of
radio station name and frequency advertising. Similarly in a world where
every 10 minutes 4 , both aim to create there are a limited number of options
higher measurement scores and thus to reach an audience, the more
increase revenue without providing audience you reach, the higher your
the advertiser with even a vaguely price climbs. The less advertising
accurate sense of the extent and space is available, the greater your
nature of engagement with their fee per spot. The key pricing game for
specific advertisement. media companies is managing the
yield per advertising spot versus the
Effectively, imperfect information number of spots that can be sold,
mixed with power of distribution while still maintaining audience
rewards mediocrity of content. interest. It is thus a “marginal value”
Content doesn’t have to be “the best” analysis where value is defined by
for any specific member of your audience size due to their interest in
audience, it just needs to be “good the programming and the most
advertising breaks they are willing to
bear before switching channels.
3 Bulking pertains to giving away free copies of publications and reporting it as added circulation
to drive up readership and thus reach. This in turn increases the price of advertising space.
4With per track pricing now available via iTunes and so many other online music sellers, it can be
seen that most blockbuster artists do not sell albums, but rather that individual “hit” songs. This
has impacted label revenues dramatically even though a greater volume of purchases is being
generated.
6
7. Record labels such as EMI are in
The scarcity of content is also bankruptcy, newspaper revenues in
relevant. By controlling the content the US have tumbled from $60 Billion
flow, you consolidate audiences on a to $37 Billion and amid flat advertising
smaller number of platforms. This growth, internet advertising has
increases efficiency and profitability. It overtaken television as the largest
therefore isn’t in the media owners’ advertising medium while radio
interests to have too much choice, as revenues and profitability are down
creating high quality content is significantly in developed markets.
expensive.
While all of these changes are not
driven by the emergence of the
Is the impact of the Internet, it has dramatically shifted the
internet the end of Big speed with which these changes are
happening.
Media?
The challenge for Big Media is that
From the late 90’s the online media the internet reverses the key elements
tsunami has been coming in. The that provide their market power and
cliché that major technology shifts fundamentally changes price
always take longer to arrive then structures.
anticipated but their impact is always
more severe than imagined, seems to
be coming true in the media space.
7
8. Distribution From control to anarchy.
Imperfect information From lack of data to in-depth data.
Scarcity From limited ad space and audience to unlimited
ad space and audience.
From limited content to unlimited content.
Second, audiences can utilize more
Distribution. media with no switching costs,
increasing the diverse amount of
The internet fundamentally changes media they consume and making it
government’s ability to regulate media excessively hard for media companies
and thus the ability of a small number to be a viable way to reach an
of companies to access to audience. The increasing use by
consumers. Whether content is free, individuals of multiple media means
“freemium”, or behind a dedicated that the same person could be
pay wall, it can be delivered cheaper, targeted across a variety of platforms,
faster and without a license. reducing the power any single
platform has to demand premium
We have moved from the limitations advertising based on scarcity. All this
imposed by lack of frequency or the creates new advertising models and
cost of a subscription to a pay technologies which will be discussed
service, to unlimited quantities of at a later in this eBook.
content, available through multiple
providers and from anywhere in the The loss of distribution power is
world. effectively the loss of Big Media’s
monopoly. There are limitless new
This loss of control over distribution entrants, significantly large numbers
impacts the business model of competitors, increasing numbers of
fundamentally. ways for advertisers to reach
audiences and dramatic impacts on
First, the cost of entry drops enabling both price, and how media is sold.
almost anybody to provide media to
an audience. In fact, the shift from
scarcity to plenty presents a new
problem for consumers: they have to Imperfect information.
sift through all of the content available
to discover what they feel is useful. The move from imperfect information
“Search”, provided by companies like towards perfect information will
Google and Microsoft, is therefore a dramatically change the price of
critical tool in selection of media, advertising and have a significant
effectively becoming its own impact on the benefit to advertisers.
advertising medium.
8
9. Traditional advertising pricing models planners will prefer simple
are based on a measure of measurability over broad targeting,
“wastage”5. The selling of media is and this will shift media spend
based on targeting an audience using towards a medium or model where
rough reach measures and broad Return on Investment is simpler to
media. measure.
Further, the difficulty of measuring
efficacy limits how refined an
Perfect information.
advertisement can be to target
specific consumers. The old adage, “I Living in a world of scarcity is
know half of my advertising works, I something that we are all familiar and
just don’t know which half,” rings comfortable with. Though many New
true. Age types would disagree, scarcity is
common in the physical world. The
The new models, though not internet, however, has developed to
foolproof, offer far greater enable a “wealth” of information at
measurability of advertising success, our fingertips. Though not limitless, it
making it easier to monitor both reach is generally abundant.
and interaction. With measurability
comes the ability to understand the The cause for the abundance of
efficacy of advertising mediums and media the ease of adding and
executions and deploy advertising accessing information. Where before,
spend more effectively. Bob the Butterfly Collector couldn’t
afford to publish a weekly magazine
The change in the level of information and the editors of the local
available to advertisers will have a newspaper didn’t give him a Butterfly
significant impact on price. It can be Beat column, now he can reach an
expected that over time the price per audience. And for thousands of other
interaction will increase and wastage butterfly enthusiasts this is a real
will decrease. Advertisers will be benefit.
willing to pay more per interaction (or
person reached) than they are today. This same story is repeated literally
millions of times, from bloggers to
So, we may see an effect where even specialist publications. The net result
though advertisers are spending less is that media no longer serves the
overall on advertising, they are paying “mass market” only, it starts to serve
more per advert. The biggest threat those at the edges. “The long tail.”
this transition poses to traditional The interesting thing about the long
media is that CFO’s and media tail is that every person is part of a
long tail for something.
5 Wastage identifies the target audience reached that is not core or interested in the offering.
9
10. Now these butterfly enthusiasts are will have very little competitive
not only into butterflies. They fit into differentiation as broad tools of reach
other target markets too. They buy and frequency.
cars, go on holidays and have mobile
phones. Reaching them through
Butterfly Beat is as viable an option
The declining cost of
as it is via the New York Times. If the advertising.
message is crafted, in fact, it may well
be more effective on Butterfly Beat. The increasing number of media
providers and methods in which the
The abundance of media choices audience can be reached will force a
creates another price shift for decline in the price of advertising as
advertising. The easier it is to reach we know it today. Alternative forms of
your audience through a variety of reach will devalue even traditional
suppliers, the less market power each advertising models. This will create a
supplier has, and the lower the price significant challenge for media
they can charge. The fact that you as owners unless new models in which
an individual in a target market value can be unlocked are found.
consume 10 different media providers
by the time you finish your morning
coffee at work gives the advertiser the Relevance over reach.
option to choose how to reach you.
Although each medium may have As already discussed, mass media
different benefits and qualities an advertising is currently sold based on
advertiser may wish to employ, they a reach model that incorporates high
10
11. levels of wastage. It reaches not only context, i.e. the purchase of a search
the target market, but segments that keyword.
are not in the market. The advertiser,
of course, pays for all of them. Search-based context allows the
advertiser to be where the consumer
From an economic standpoint this is is without having to guess which
inefficient and advertisers have been media they might be consuming. This
looking to find a way to fine tune the is relevance driven by demonstrable
targeting of audiences to reach key consumer demand rather than
markets more effectively. relevance driven by media supply. It
provides the insight that people who
Ideally, providing an advert only to are in the market for a car may not
relevant consumers in the market necessarily be reading car magazines.
would optimize the spend. Relevance
however, is based on a number of The relevance model increases the
factors including propensity to buy value of the audience for both
and timing, e.g. you may have advertiser and media owner. The
propensity to buy, but won’t not for more an advertiser can target an
the next few years. Currently, audience, the lower the wastage and
relevance is achieved through the higher the success rate, thus the
context, i.e. placing adverts for cars in more they are willing to invest. Their
car magazines. return on investment increases even if
New advertising models, such as they are paying more per interaction
search advertising, have allowed because they have stripped out the
advertisers to purchase relevance cost of wastage.
without needing to buy a specific
11
12. By contrast, traditional media owners
Demand versus supply are caught in an old paradigm where
based pricing. they generate content and have
limited audience that comes to them
The Google pricing model has done for that specific content. This means
away with the rate card to enable that a certain minimum amount needs
keyword auctions. The advertiser sets to be charged for the efforts to be
the price of what a keyword typed profitable. Letting advertisers select
into a search engine is worth, and as price would be difficult as there is an
many advertisers compete for the insufficient audience size to do this
same keyword (seeing it to be highly effectively.
relevant), the value of the keyword
increases as there is still a finite However, in the face of a changing
audience typing that keyword into market paradigm and such attractive
Google. pricing models, it is critical for media
to differentiate its pricing and provide
By helping smaller publishers (as value to advertisers or face immense
small as a single blog) to solve the pricing model pressures which will
problem of selling their sites by make it a struggle to succeed.
providing a self-service system,
Google has given itself the Targeting.
opportunity to rapidly expand its
audience. The business is built on the Demographic information is already a
basis that advertisers will pay for key value driver for advertisers as it
results (there will be a “cost per click”) makes it possible to target a specific
and will not be concerned which market. Demographic targeting is
media provided them the results. This currently done using broad research
means that, through their network of tools and extrapolation of findings
publishers placing Google advertising across the total market.
spots on their websites, Google can
efficiently sell media. With the ability to target advertising
on an individual basis (i.e. deliver x
And so, their search engine model is banner to y target audience and z
leveraged with a network model banners to w audience) advertisers
providing almost limitless inventory can enhance their messaging to be
space at no cost. In this way, it’s not more persuasive and effective, thus
an issue whether one site is achieving more with their ad spend.
successful or not. Google can This capability is far more effective
therefore have a success-based than traditional broadcasting, where
model and auction-based pricing the same message is delivered to the
because they can deliver a large array entire audience.
of advertisements to make even a Beyond demographic targeting,
0.02% clickthough rate highly behavioral targeting allows
profitable. advertisers to deliver messages to
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13. customers whose actions and
interests are aligned with the target The changes in how advertising is
market. Behavioral targeting is priced will mean that, by controlling
gathered by viewing the individual’s the amount of reach they are willing to
journey across a site or even across target, smaller advertisers will now
the internet to discern their interests have access to the advertising
and potential buying patterns. opportunities previously only available
to bigger advertisers.
Behavioral learning can be across a
network of properties and media In simple terms, if I can only afford to
owners and not just one site, allowing reach 1000 potential customers this
an advertiser to reach an month, I can purchase advertising
unduplicated6 audience more exposure equal to that. Even if the
effectively. price per quality interaction is high,
the overall price I am paying will be
This means that the new value for far more effective than the price I
media owners is not just would have had to pay in the old
understanding the behavior of media paradigm. The timing and
individuals, but in helping advertisers potential cash flow is also more
use this understanding to more favorable as I am more closely
effectively target advertising. aligning my revenue stream with my
advertising costs.
Segmentation drives This ability to purchase smaller
revenue growth. chunks of advertising was not
possible with the traditional broadcast
If you’re able to make advertising or print media, where one had to pay
more relevant, targeting smaller for the total audience, whether they
segments of the overall audience will were relevant or not. The type of
increase. The sum of the segmented advertising could be changed -- you
audiences is likely to be worth more could advertise in the classifieds or
than the unsegmented, or bulk, on the opinion pages of a newspaper
audience currently being sold. -- or the timing could be adjusted,
but the impact and quality of your
Smaller audiences can be sold at a advertising would inevitably be
higher yield than the current bulk compromised in ways you could only
advertising deals. guess at without detailed reporting.
So, lower prices and more segmented
The shift to a bigger sales methods should increase overall
market. demand for advertising as the value of
the audience would be defined both
6 Duplication of audience refers to reaching the same person through a variety of media, thus
spending more than is needed. Unduplicated means that you have reached the person with the
targeted frequency (number of times) and not more than that.
13
14. by its reach and by targeting factors. The convenience and simplicity
This can be seen in the wide range of argument would show that the trend
advertisers that Google and its would be towards the simpler option.
competitors attract. With more than 2 Consequently, advertising networks
million customers, their client base are becoming more powerful.
ranges from Fortune 500 companies Networks place advertising across a
to neighbourhood yoga instructors. variety of platforms, allowing the
advertiser to reach a targeted
audience more easily, all through an
The change in how automated interface.
advertising is sold.
Advertising networks could displace a
Selling segmented markets and a large volume of sales both from a
larger base of advertisers will require media sales force and media buyers,
new models for advertising sales both of whom require a higher
transactions. Improved systems to transaction cost. Many large
enable higher volumes of more advertisers have already taken media
complex transactions with a lower buying in-house as these tools
revenue per transaction will need to continue to demystify the media
become a core capability of media purchasing process. Smaller
houses. Self-service, realtime, advertisers who interact only with an
automated systems are already part advertising network will completely
of the backbone of the online circumvent much of the value chain
advertising. Traditional media will created by today’s media industry.
have to match these standards. Advertising networks at the moment
operate as an unsold inventory
The challenge for most media owners channel, buying up available stock at
is that they don’t provide enough the last minute (“unsold inventory”)
access to specific markets. E.g. and using that to deliver advertising
would I, as a small business, want to for its clients at a low cost. The move
place my advertising with 10 different away from unsold inventory solutions
media owners and negotiate for the to include premium sales has already
best price at each one? Or would I begun with Google’s DoubleClick’s Ad
prefer to work with a single provider Exchange program and smarter
that can purchase the advertising targeting of site visitors. It is a critical
space for me across a variety of development as digital media buyers
media owners and still achieve my will not want to access multiple
objectives? systems to procure advertising. They
will standardize on a small number of
systems and those may control the
bulk of advertising spend.
14
15. The strategic requirements for media media is purchased on GRP’s7 rather
houses may end up being to expose than the quality of the audience by
data and simplify integration points, media planners. The ROI structure of
rather than building and owning their ad networks creates a further threat
own advertising networks. The ability as low quality audiences can easily be
to provide and receive information offset by price, thus creating a
from multiple ad networks, numbers-based purchase that erodes
dynamically select optimal price and all brand value.
run the advert will become a critical
part of the value chain. What this signifies is a potential shift
in market power, away from media
In a world filled with higher levels of owners towards advertising networks.
targeting, the advertising networks As these networks have reach
gain significant power. Advertisers will through their networks of media
be more interested in Return on owners, they have a better ability to
Investment in an audience and less direct advertising spend than the
worried about where the audience is media owner directly, especially for
originated. This will dramatically the smaller advertiser. A large number
reduce the power that media brands of small, targeted media platforms,
have to command a premium along with advertising messages
advertising rates based on the quality tailored to fit, will be a proposition
of their audience. This has already hard to beat.
happened in traditional media, where
7 Gross Rating Point – a measure of reach and frequency to reach a target market.
15
17. The battlefields of the future.
While segmentation provides hope for a more profitable future, the route to
customers is getting ever more complex for media owners.
Reducing media buying to a function of reach or frequency within a broad target
market is a growing risk. With higher levels of automation the ability of sales
forces to influence sales will reduce, further limiting revenue optimization
opportunities. Media houses have to review their channel strategies, develop the
capacity to serve the emerging broad-base advertising market and strengthen
relationships with key purchasers that live outside automated systems.
Behavioral targeting will favour either mass media platforms like Facebook,
where large audience numbers aggregate but reveal profound insights into
personal preferences and behaviours, or sites that hyper-serve defined niches.
It’s premature to predict which system will be the winner in the new media
world. Behavioural targeting? Aggregation? Google? Facebook?
It is, in fact, likely that there will be a number of systems which will succeed in
providing better media experiences for both advertisers and users. They are
certain, however, to have one thing in common:
Data.
To survive -- and to thrive -- Big Media must develop the ability to analyse and
segment markets, along with the ability to share the information in a meaningful
way with advertisers. Reviewing existing content and product strategies is a key
component to creating the depth of inventory needed to compete.
The change from supply to demand side pricing will drive a growing reliance on
strong yield management software. Decisions regarding which advert to run
based on the highest possible price received from different ad networks will be a
key factor in optimizing profitability.
Already, there are Big Media players who are adjusting their perspective and are
succeeding. Many, however, have their heads in the sand. Perhaps the question
most worth asking is:
Where do you stand?
Nevo Hadas
nevo@kagisomedia.co.za
17