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This document discusses the major changes and trends impacting media planning and buying in the 21st century. It outlines the rise of integrated marketing communications (IMC) and the need for accountability and ROI measurement. It also describes the proliferation and fragmentation of media options due to factors like convergence and addressable advertising. Finally, it notes the changing demographics in America and the impacts of globalization on media planning.
Mp+ +b +chapter+3-2
- 1. The Revolution CHAPTER 3 Media Planning & Buying in the 21st Century
- 2. Agenda INTEGRATED MARKETING COMMUNICATIONS ACCOUNTABILITY CONSUMER CONTROL EXPLOSION OF MEDIA OPTIONS CHANGING FACE OF AMERICA GLOBALIZATION RISE & FALL OF KEY MEDIA THE NEW MEDIA PLANNING Media Planning & Buying in the 21st Century
- 3. Leo Burnett on IMC in 1950 “When you are planning an advertising campaign, the people involved in planning must be able to mentally integrate, in the thought and structure of the advertising itself, the things that should take place in the store, at the service station, in the showroom, at the ticket window, or when the salesman calls.” --Leo Burnett in a 1950 speech to the ANA Media Planning & Buying in the 21st Century
- 4. 1. The IMC Revolution Media Planning & Buying in the 21st Century
- 5. What is IMC? “…a planning process designed to assure that all brand contacts received by a consumer or prospect for a product, service, or organization are relevant to that person and consistent over time.” Media Planning & Buying in the 21st Century
- 6. The Client View The #1 concern of the Association of National Advertisers (ANA) has been the inability of its internal & external partners (e.g., agencies) to deliver effective integrated marketing solutions to client marketing and communications problems. Media Planning & Buying in the 21st Century
- 7. Tools of IMC Goal is to use whatever marketing communications tools will best and most cost effectively address marketing problems or opportunities IMC tools include: Advertising Direct Marketing Consumer & Trade Promotion Online advertising & Promotion Publicity Event Marketing Product Placement Custom Publishing And more Media Planning & Buying in the 21st Century
- 8. Tools of IMC Goal is to use whatever marketing communications tools will best and most cost effectively address marketing problems or opportunities IMC tools include: Advertising Direct Marketing Consumer & Trade Promotion Online advertising & Promotion Publicity Event Marketing Product Placement Custom Publishing And more Media Planning & Buying in the 21st Century
- 9. Barriers to IMC Clients Internal fiefdoms and budget power Bid out agency’s ideas to suppliers Lack of IMC education Agencies Client politics Lack of expertise in many marketing communications areas Financial realities of making/losing money on IMC Media Planning & Buying in the 21st Century
- 10. IMC: Do or Die Clients Must stop shooting themselves in their IMC feet by rewarding internal marketing groups for pursuing programs which are not on strategy Stop disincentivising their agency Agencies Some agencies have had difficulty delivering IMC programs Agencies must learn how to profitably deliver IMC solutions Failure to do so will put business at risk Media Planning & Buying in the 21st Century
- 11. 2. Accountability & ROI Media Planning & Buying in the 21st Century
- 12. Accountability & ROI Historically, There has been little accountability for results and ROI based on most forms of marketing communication, except for those which are quantifiable by nature (e.g., direct mail) Many variables affect sales results Brand managers prefer predictable results of trade promotion Is a sales increase due to increased awareness or to in-store promotional activities? ANA is renewing its call for better metrics to measure ROI Media Planning & Buying in the 21st Century
- 13. 3. Consumer Control Relevance Time Constrained Enabled Power Media Planning & Buying in the 21st Century
- 14. 4. Revolution in Media Options Proliferation Fragmentation Declining Effectiveness of Television Newspapers in Freefall Convergence Addressable Media Interactive Media Media Planning & Buying in the 21st Century
- 15. Proliferation of Media Media Planning & Buying in the 21st Century
- 16. Fragmentation Audience Fragmentation Media Planning & Buying in the 21st Century
- 17. Convergence Convergence is the merger of two or more media to create a new medium Internet + Television = Internet TV Internet + Newspapers = Online Newspaper Internet + Magazines = Online Magazines Movies + Games = New Games Messaging on cell phones Media Planning & Buying in the 21st Century
- 18. Addressable Media A Super Targeting Methodology In early-mid stages of development Utilizes set top boxes in cable TV homes Substantial information collected on subscribers Could be used to precisely target audiences for commercials Pick up truck commercial goes to truck owners Corvette commercial goes to sports car enthusiasts Google a prime developer with Echo Star Cable Cable industry’s Project Canoe Media Planning & Buying in the 21st Century
- 19. Interactive Media Traditional Interactive Media Techniques 800 numbers Reader service cards URLs in ads Digital Interactive Media Websites Internet/search Social Media Mobile Interactive Television (iTV) Has been available for years on a limited # of cable systems May be getting closer to a real debut 75% surveyed execs think iTV would be an effective source of lead generation and could become a large industry Media Planning & Buying in the 21st Century
- 20. 5. Changing Face of America New Target Markets? Media Planning & Buying in the 21st Century
- 21. U.S. Demographic Trends 1990 (Millions) 30 2010 (Millions) 40 % Change 33.3 7 23 228.6 Boomers (Based on 55+) 52 78 50.0 Hispanic Origin 22 48 118.1 African Americans Asians Media Planning & Buying in the 21st Century
- 22. 6. Globalization Media Planning & Buying in the 21st Century
- 23. The New Media Planning: Integrated Marketing Communications Traditional Media Experiential Marketing Public Relations Media Planning & Buying New/Digital Media Sales Promotion Direct Marketing
- 24. The New Media Planning % of Spending Now 44% Future 15% Radio 10 3 Print 33 25 Outdoor 4 3 Search 9 22 Interactive -- 30 Mobile <1 2 Television Source: Kellogg on Advertising and Media & Thumbnail Media Planner Media Planning & Buying in the 21st Century
Editor's Notes
- #2: Purpose: overview of the revolution taking place which has dramatic effect on media.
- #3: Revolution going on is multi faceted– ranging from client demnds for IMC to consumers taking more control, how target audiences will change due to the changing face of America…
- #4: Long before anyone ever coined the Integrated Marketing Communications term, some visionaries already embraced it. Here’s 1950 quote from Leo…
- #5: Rather than providing a one dimensional solution to a marketing problem, IMC requires us to take a 360-degree look at the problem and provide a 360 degree solution.
- #6: What is IMC?
- #7: IMC is the #1 concern of the ANA. It should be the #1 concern of agencies too.
- #8: The marketing communication tool box is overflowing, and the tools that should be woven together are those which address the client’s marketing and communications tasks
- #10: Barriers to IMC. Not unlike national politics. But why can’t we all just work together for the business’ good?
- #12: Second is greater accountability with better metrics to measure effectiveness
- #14: Third characteristic of the revolution is that consumers are taking more and more control over their media and ad consumption– made easier with the internet, DVRs, etc.
- #15: Fourth, the revolution going on involves some big issues like these
- #16: Media choices, especially digital, have soared as a result of technology and learning how to serve the needs of specialized audiences
- #17: The proliferation of media has fragmented the available audience. Over 100 cable TV channels have stolen audience from the broadcast networks. to the point of having the largest share of audience. Digital media, especially internet search. Ambient media. Marketing Services media’s share is the largest of all.
- #18: Convergence is also creating new media– from internet TV to online editions of print media
- #19: Every media planner’s dream has always been to have the ability to target an audience with great precision. Addressability is here and will become more prevalent.
- #20: Finally, interactive media
- #21: The fifth part of the revolution is the Changing Face of America. Population demographics arechanging rapidlyas shown on this slide. Changes in the population and marketplace will spawn new target markets, new media, and different spending priorities.
- #22: Hispanics to overtake African American population, Asians growing most rapidly but represents many different countries, cultures and languages.
- #23: Finally, Global Expansion no longer just large corporations. Utilizing the internet can turn a small specialty shop into a global player.
- #25: Some experts see these future shifts in spending. No one knows the future, but these shifts would play havoc with the current media establishment. Keep in mind that the growth in interactive media will put dollars back into television (iTV), but radio as we know it would be in serious trouble.