Transcript Slide 1

EuroMedia Trends 2005
Marketers’ Perspective
from 14 European Countries
1
Study background
BACKGROUND
• The media landscape is changing fast
and becoming highly fragmented
• Consumers’ media consumption habits
have entered a new era with the
introduction of new communication
technologies leading to more connection
opportunities
QUESTIONS
• Does the allocation of marketers’ media
budgets reflect these new media and
message consumption patterns?
• Which media do marketers perceive as
being the most effective at meeting
different marketing objectives?
• What is the role of different media in
integrated marketing campaigns?
2
EuroMedia Trends 2005 - European study of
marketers conducted by Millward Brown on:
TRENDS
• Marketing and media decisionmaking
• Media and marketing spending
PERCEPTION
FORECASTING
• Marketing and media effectiveness
‘
• Marketing/media trends in Europe
(with a focus on Western Europe)
3
A robust multi country and cross industry study on
trends, and perceived media effectiveness
COUNTRIES
SAMPLE
INDUSTRIES
Europe
Western
Central Eastern
Germany, France,
Croatia, Czech Rep.,
Italy, Spain, Portugal,
Hungary, Greece,
UK
Poland, Romania,
Russia, Turkey
704 interviews with
marketing decision makers
in key industries
Automotive, Beauty/Toiletries,
Entertainment, Financial Services,
Food/Beverage, Media, Pharmaceutical,
Retail, Travel/Transportation, Telecom,
Technology
4
Main findings
BUDGET
MEDIA
• Biggest budget cuts are expected in leading W
countries. Many big spenders are cautious,
while CE marketers are more optimistic about
their budget growth expectations
• In Europe, marketers favor traditional media
channels to achieve diverse marketing
objectives, while in the US “trial and repeat”
has already switched to online
• European marketers seem to focus more on
short term sales building,
risking sacrificing
'
longer term brand equity building
• Online marketing in Europe is becoming more
popular (mostly in new customer acquisition
and by offering measurable ROI) but is still at
a level below the US (c.f. penetration issues)
IMC
• In W integrated marketing campaigns are less
widespread than in CE
7
About Those Budgets…
8
Only around 1/3 of the Italian decision makers
are optimistic about growing their budgets in
2005, in line with the rest of W.
CE marketers are most optimistic.
Increase expected
for 2005
CE
 58%
EU
 40%
W
 37%
Biggest spenders in Western
Europe are comparatively the
least optimistic – the picture
is more consistent in CE
 ITALY: 30%
From other studies conducted in the US we know that there,
optimism amongst marketers is above the European average.
QE3. How does your total 2005 marketing/media budget compare to the budget for 2004?
9
‘Most positive’ markets going into 2005: RO and
RU. ‘Least optimistic’: DE and FR
% marketers plan increase
80
70
Romania
Russia
58
57
57
54
CE Average
Czech
Croatia
Greece
Hungary
Turkey
Poland
Spain
UK
EU Average
Portugal
W Average
Germany
France
Italy
52
50
46
46
43
40
39
37
32
32
30
% marketers plan decrease
Russia
0
Spain
2
Romania
4
Poland
6
Turkey
6
CE Average
7
Italy
9
Greece
12
EU Average
13
W Average
14
Croatia
14
Hungary
14
Portugal
14
UK
14
Czech
16
France
18
Germany
18
QE3. How does your total 2005 marketing/media budget compare to the budget for 2004?
11
Marketers grow spending on media linked to
short term sales building
Of all media that increased in 2004, Magazines
are getting the biggest increase in Europe,
driven also by Italy
% of Marketers said they would grow their particular media budget
EU
US
2004
vs.
2003
2005
vs.
2004
2004
vs.
2003
2005
vs.
2004
Online
28
26
57
54
Magazines
25
22
34
30
Direct Mail
20
21
38
34
Newspaper
19
15
28
28
Outdoor
15
15
23
19
Radio
13
11
27
25
TV
12
10
37
33
Online, Magazines, Direct Mail – perceived to offer better targeting and ROI
QF2. How does your 2004 marketing/media budget compare to your 2003 marketing/media budget for the following media?
QF3. How does your 2005 marketing/media budget compare to your 2004 marketing/media budget for the following media?
14
Amongst on-line users, web advertising will
grow most over the next 5 years in EU
There are growth expectations also for E-Mail
Marketing in Italy
% of Marketers naming the one online application that will grow the most over
the next 5 years.
(in %)
Europe
Italy
Online Promotions
25
20
E-Mail Marketing
25
32
Web Advertising
35
28
Growth expectations for Web Advertising
highest for CE countries
Base: Usage of online marketing
Growth expected for the next 5 years for Web Advertising:
60-70%
50-59%
40-49%
30-39%
20-29%
 Croatia, Russia, Romania
 Turkey
 Germany, Portugal, Greece, Czech Republic
 Hungary
 Italy, France, UK, Poland
19% or less  Spain
Q.F7 What is the one area within your company’s online marketing budget that you feel will grow most
15
over the next five years?
European computer and online penetration
is growing fast
Global
internet
penetration
PC’s per 100
inhabitants
Internet
penetration
June 2002:
9,57 %
January 1996:
0,73 %
US:
Europe:
2001
62.44
19.08
to
of world
population
2003
65.98
22.43
Growth rates (2000-2005):
European Union
131,6%
Rest of Europe
341,9%
Italy
116,7%
US
110,7%
CE countries grow at double digit rates since 2000.
The highest: Romania from 6% (2002) to 23% (2003)
16
Internet usage growth rates (2000-2005)
go through the roof. Particularly in the CE countries,
where base internet penetration is still behind W
Internet penetration (% Population)
User Growth (2000-2005)
1200%
70%
1059%
1000%
49%
800%
60%
52%
50%
41%
619%
34%
600%
28%
34%
34%
40%
35%
30%
30%
400%
400%
16%
200%
59%
56%
19%
279%
327%
280%
200%
8%
171%
20%
253%
192%
117%
44%
93%
128%
US
Internet penetration 2005: 67% (of the population)
User Growth (2000-2005): 110%
U
K
0%
Tu
rk
ey
Ru
ss
ia
Ro
m
an
ia
Po
la
nd
H
un
ga
P o ry
rt
ug
al
Sp
ai
n
G
re
ec
e
Cz
ec
h
Fr
an
ce
It
al
y
Cr
oa
tia
G
er
m
an
y
0%
10%
17
Marketers' Opinions About
Media Effectiveness
18
Media Effectiveness Evaluation
We asked marketers to give their opinions on media
effectiveness for selected media.
6 ATTRIBUTES EVALUATED
Building Brand Equity
New Customer Acquisition
Providing Measurable ROI
Ability to Retain Customers
Ability to Reach Target Audience
Offering Efficiency
19
TV leads in building brand equity…
But based on those companies which use TV within their media mix
6 ATTRIBUTES EVALUATED
TV
RADIO
Building Brand Equity
New Customer Acquisition
Providing Measurable ROI
Ability to Retain Customers
Ability to Reach Target Audience
Offering Efficiency
20
Media that deliver short term ROI are rated highest
in reaching diverse marketing objectives
Online is becoming recognized across attributes…
6 ATTRIBUTES EVALUATED
Building Brand Equity
New Customer Acquisition
Promotion
Magazines
Direct mail
Providing Measurable ROI
Direct mail
Promotion
Online
Ability to Retain Customers
Direct mail
Promotion
Magazines
Direct mail
Magazines
Promotion
Direct mail
Promotion
Magazines
Ability to Reach Target Audience
Offering Efficiency
21
Continued Importance of Online Media..
25
Online is becoming a specialism within European
marketing departments, particularly among the
biggest spenders…
Having a centralized online marketing group at the company
Europe
42 %
ITALY: 37%
US
Compared to
73 %
In Western Europe 44% of respondents said they have centralised
online marketing groups (54% among the biggest spenders) while in
CE this ratio was 28%
The US data represent learning from different studies conducted by Millward Brown
Q.D2: Do you have a centralized online marketing group at your company?
26
…Leading to half of European marketers using a
specialist external agency for online support
Only 1/3 of the Italian Companies works with an
external agency
Working with separate agency for online support
Europe
US
46%
64%
Biggest spenders: 51%
W
44 %
ITALY: 33%
CE
61 %
The US data represent
learning from different studies
conducted by Millward Brown
Base: total
Q.D4: Does your company work with a separate agency for your online marketing/media efforts?
27
How Media is Being Used
to Meet Marketing Objectives
28
What objectives are brand marketers trying to
meet: definitions.
Trial & Repeat
Retaining customers
and increasing
loyalty
Trial & Repeat
Encouraging trial
Trial &
Repeat
Purchases
Awareness
Creating awareness
of new product
Awareness
Awareness
Keeping established
product top of mind
Trial & Repeat
Acquiring new
customers
Consideration
Consideration
Communicating the
brand's position
Consideration
Expanding the brand's
consideration
29
TV and Magazines were named most effective
for “creating awareness” and keeping
established products “top of mind”
Awareness
Creating awareness
of new product
Magazines
TV
Outdoor
Awareness
Awareness
Keeping established
product top of mind
TV
Magazines Outdoor
30
Traditional media still have highest confidence of
European marketers in boosting consideration
Consideration
Consideration
Communicating the
brand's position
TV
Magazines
Consideration
Expanding the brand's
consideration
Newspapers
31
While in Europe marketers vote for traditional media
channels to increase trial and loyalty, in the US Online
channels excel on response-based efforts
Direct mail
TV
Magazines
TV
Trial & Repeat
Retaining customers
and increasing
loyalty
Trial & Repeat
Encouraging trial
Newspapers Direct mail
Trial &
Repeat
Purchases
Trial & Repeat
Acquiring new customers
TV
Magazines
Newspapers
32
Integrated Marketing Campaigns
36
59% of European marketers claim that they develop
Integrated Marketing Campaigns
Italian marketers seem to use quite less Integrated
Marketing Campaigns in comparison to the W average
level
Europe
US
59 %
89 %
W
56 %
CE
78 %
But there is no
universal
definition!
ITALY: 43%
No strong differences in W on the basis of the companies' media budget availability
All marketers use different words to describe integrated marketing campaigns…
The US data represent learning from different studies conducted by Millward Brown
QD5. Does your company execute integrated marketing campaigns?
37
Integrated Marketing Campaigns are becoming
more widespread.
The majority of the Companies has been using IMC
for more than 3 years
% of Integrated
Campaigns in total
All
Most
22
34
IT: 30%
IT: 10%
Some
38
IT: 55%
6% DK/ no answer
Base: using Integrated Marketing Campaigns
QD5a. When did your company start doing integrated marketing campaigns?
QD5b. For this year, out of all the marketing campaigns that you are aware of, how many are
integrated marketing campaigns?
39
Opportunities and Conclusions
BUDGET
• In W there is a cautious optimism about
marketing budget increases far below the US or
CE expectations.
• Marketers with medium size budget are the most
optimistic about their budget growth, while big
spenders stay very conservative
MEDIA
• European marketers still apply traditional
approach to planning media budgets giving
preference to media channels supporting short
term sales
• Online marketing/web advertising is starting to
become more important in the marketing mix in
both Western European and CE countries.
IMC
• Almost half of W marketers are not yet converted
to integrated marketing campaigns that take
advantage of the strengths of each medium in a
holistic way
• From the other research we do, we know that
consumers are using multiple media in multiple
ways and are available to be reached beyond
traditional communication channels
40