Transcript Understanding today’s Media Mix Landscape

Minnesota Coming Together: 2010 MNA/MFPA Convention
Understanding today’s
Media Mix Landscape
Presented by:
Tom Yunt
The Media Mix
The Media Landscape is Changing!
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• The Media Industry is attempting
to move from monologue to
dialogue.”
Mike Wagner
White Rabbit Group
Des Moines, IA
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• “We have moved from the Ford to
the Starbucks economic model.”
Mark J. Penn
Author
microtrends
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• Analysts forecast declining
traditional media company
revenue, market share, and profit
margins…
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• And continued and aggressive
market share competition and
erosion form on-line media, as
well as new and emerging
interactive technologies…
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Good examples…
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• The internet exceeded radio in
its share of global advertising
spending in 2008!
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• It is predicted that the internet
will overtake magazine
advertising in its share of global
advertising spending in 2010!
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• Private equity and investment firm
Veronis Suhler Stevenson
(VSS) predicts the US Internet
will capture $61.98 billion and
become the top ad medium in
2011!!!
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Largest percentage gains in 2007
advertising spending:
• Satellite Radio 12%
• Mobile 100%
• Video Game Advertising 90%
• Cinema Advertising 15%
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• Branded EntertainmentProduct Placement 35%
• Custom Publishing 14%
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In 1998 Newspapers had 32.4%
of advertising market share…
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By 2007, Newspaper advertising
market share had declined to
20.4%!
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According to Nielsen, the
biggest American Advertising
declines in 2007 by category
were…
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• Network Radio…down 8.5%
• Local Newspapers…down 8%
• National Newspapers…down
5.9%
• B2B Magazines…down 5.7%
• Local Magazines…down 5.2%
• Sunday Supplements…down 4.7%
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• Where does that leave
Newspapers and Traditional
Media?
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Opportunity!
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If…
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• WE work harder, smarter,
understand our business and that
of our customers, place our
customer in the priority position,
know our competitors and their
role in the media mix and accept
the new media landscape!
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Keep in Mind…
The customer BUYS three (3) things:
1. Their Rep (YOU!)
2. An Idea (Spec Ads/Concepts)
3. Results
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Newspapers…
The Media Mix: Newspapers
Strengths:
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Local, local, local
Good level of market coverage
Baby Boomer’s media choice!$!$!$!$
Readership!
Coffee Table Effect…Pass Along Readers
Media “purchased” by consumers
Portable/Flexible
Foundation of most local media mix
The Media Mix: Newspapers
Weaknesses:
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Declining readership and circulation
Difficulty in reaching younger demos
Difficult media to purchase
Inconsistent reproduction quality
Heavily dependent upon Automotive,
Real Estate and Employment
Advertising!
• Short life span
The Media Mix
Shoppers…
The Media Mix: Shoppers
Strengths:
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Total market coverage/distribution
FREE!
Shopper denotes use of product!
Cost effective
Classified Advertising
Small, limited budget Advertisers
Coupons
Fast Food Advertisers!
The Media Mix: Shoppers
Weaknesses:
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Free…uninvited into the household!
Ineffective to mid-to-upper demos
Often times, it’s to the “recycling bin”
Frequency…once a week
Dependent upon small-to-medium size
advertisers!
• Inability to select/target audience
• Image
The Media Mix
Network Television…
The Media Mix: Network TV
Strengths:
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Dynamic, attention-getting media!
Sight-Sound-Motion
Good at demonstrating product
Baby Boomer Media Choice!
Intrusive
Mass Coverage…like Newspapers!
Considered “sexy” by media buyers and
advertising agencies
The Media Mix: Network TV
Weaknesses:
• Production costs, lead time
• “Now you see it, now you don’t!”
• Inconsistent production
quality…national versus locally produced
spots!
• Channel Surfing!
• Fragmented by Cable Television
• Network television viewing in decline,
attempting to re-invent itself!
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Cable Television…
The Media Mix: Cable TV
Strengths:
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Growing audience!
Local and regional advertisers
Ability to target viewers (i.e. ESPN)
High frequency to specific targeted
audience
• Affordability compared to local affiliate
network television
• Similar to buying radio advertising
The Media Mix: Cable TV
Weaknesses:
• FRAGMENTATION!
• Ever increasing number of cable channel
options
• Production quality
• Channel surfing
• Limited local “avails”
• “Now you see it, now you don’t.”
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Terrestrial Radio…
The Media Mix: Radio
Strengths:
• Radio reaches almost everyone every
week
• “Targeted” medium
• Intrusive and local
• Production costs are low, lead times are
short
• Excels as a promotional media
• Sound!
The Media Mix: Radio
Weaknesses:
• Not a visual medium
• Difficult to measure radio advertising
effectiveness!
• Considered an entertainment medium
• “Station surfing”
• Inability to target geographically
• Fragmentation!
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Outdoor…
The Media Mix: Outdoor
Strengths:
• Digital Billboards the New Rage
• Outdoor advertising renaissance
underway
• Broad audience reach
• Superior graphic capability
• Creative Revolution
• Geographic targeting and flexibility
• Tremendous “directional” medium
The Media Mix: Outdoor
Weaknesses:
• Short exposure time…you just drove
past the ad message at 70 mph!
• Limited message capability…seven (7)
words or less!
• Affected by weather and environment
conditions
• Low recall
• Outdoor moratoriums – Local law and
ordinances commonplace
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Magazines…
The Media Mix: Magazines
Strengths:
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Growing younger audience readership!
Gen X – Y – Millennial
Targeted to lifestyle/interests
Pass along readership
Coffee table effect
High quality reproduction/color images
Portability
The Media Mix: Magazines
Weaknesses:
• Lengthy lead time, requires professional
graphic design to be effective
• Static media
• Ad clutter
• Fragmentation of magazine
industry/readers
• Typically, cost prohibitive to small and
medium size advertisers
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The Internet…
The Media Mix: Internet
Strengths:
• It’s THE New Media
• It’s a lifestyle and cultural phenomena in
itself!
• Younger demos…Gen X – Y – Millennials
PLUS Baby Boomers and Older
• Most everyone is curious, if not a web
user or consumer
• Search!
• e-Commerce: It’s the NEW Shopping Mall
The Media Mix: Internet
Social Networking!!!
The Media Mix: Internet
Weaknesses:
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How do WE monetize the web?
Fragmentation on steroids!
High speed Internet access
Privacy/Security
Web consumers highly dislike Internet
Advertising!
• Declining click-through rates
• Standardization and Measurability
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Questions???
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Thank You!