Everything Is Media

“Everything is media, and media is everything” Latest Trends in Media

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IN THE WORDS OF DAVID BECKHAM…..

I don’t make predictions, and I never will THE JOINED UP MEDIA COMPANY

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THE PHILOSOPHY Everything is media…… ¾ How technology, lifestyle and measurement changes are causing us to re-evaluate our definition of what is a media contact And media is everything ¾ How existing and emerging media planning concepts drive consumer behaviour

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WHAT IS THE EVIDENCE OF THE GROWTH IN “EVERYTHING IS MEDIA?” ¾ Winners of IPA Effectiveness awards use an average of four different media ¾ As markets evolve, the dominance of TV reduces

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WHAT IS THE EVIDENCE OF ITS GROWTH IN IMPORTANCE? DISTRIBUTION OF ADVERTISING EXPENDITURE I nt er net Out door Ci nema 2% Radi o 5% 1% 4%

I nt er net Out door 3% Ci nema 6% Radi o 1% 4% Newspaper s Newspaper s

41%

43%

TV 26%

TV 30%

Magaz i nes

Magaz i nes

19%

15%

Germany

United Kingdom I nt er net 0%

Out door Ci nema Radi o 6% 1% 5%

Out door Ci nema Radi o 1% 5% 7%

I nt er net 0%

Newspaper s 12%

Newspaper s 32%

Magaz i nes 14%

Magaz i nes 4%

TV 52%

TV 61%

Turkey

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Poland

Source: Carat 2003

5

0

THE JOINED UP MEDIA COMPANY Finland

Denmark

Sweden

Netherlands

Austria

Germany

Norway

40

United Kingdom

France

Belgium

Greece

Hungary

Spain

Russia

Czech Republic

Turkey

Italy

Portugal

Slovenia

Poland

Bulgaria

Croatia

Slovak Republic

80

Serbia &

FYR Macedonia

Ukraine

Romania

WHAT IS THE EVIDENCE OF ITS GROWTH IN IMPORTANCE? % ADVERTISING BUDGET SPENT ON TV 90

Classic model

70

60

50

Diversification model

30

20

10

Source: Carat 2003

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WHY HAS THIS HAPPENED? ¾ TV Media Inflation ¾ Saturated consumers ¾ Busy consumers ¾ Media fragmentation ¾ Better measurement ¾ More specialists

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HOW HAVE ADVERTISERS AND AGENCIES RESPONDED?

¾ Diversification and creativity ¾ Rethinking consumer planning around an organising idea ¾ Using new measurement techniques

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DIVERSION & CREATIVITY IN SLOVAKIA: CATEGORY BREAKER MEDIA:HVB CREDIT

¾

¾ ¾

¾ ¾

HVB Bank in Slovakia had a particular challenge To stimulate take up of credit the bank wanted to stress the benefits of buying products even when you don’t have the money at present. A sensitive message so a mass TV campaign was out. So the media solution was to put the TV ad in an environment where shopping aspirations would be top of mind The “media” was TVs in a retailer window, NAY (electronics retailer with 20% share) Three times uplift in credit applications

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DIVERSION & CREATIVITY IN CROATIA: LEVERAGE TV CAMPAIGN

¾ Print Advertisment • In support to Duracell Racing Bunny tvc advertisement invites consumers to join Duracell bunny in his tour around Croatia, have fun, learn about children with special needs and take a photo – which was agreed with Olympus • Headline Copy: Go with the bunny and prepare for the foto shoot! THE JOINED UP MEDIA COMPANY

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HOW HAVE ADVERTISERS AND AGENCIES RESPONDED?

¾ Diversification and creativity ¾ Rethinking consumer planning around an organising idea ¾ Using new measurement techniques

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RETHINKING COMMUNICATIONS PLANNING: THE SIX STEPS ¾ ¾ ¾ ¾ ¾ ¾

Set up a team and a collaborative process Define the brand challenge Get consumer insight Develop an organising idea Execute the idea into relevant channels Design of evaluation

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Source: Julian Saunders 12

AN ORGANISING IDEA CAN BE…. ¾ A Message

¾ A symbolic idea

¾ Brand identity

¾ Campaign theme

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WHAT IT MEANS FOR MEDIA/CHANNEL PLANNING

¾ Starts with the consumer, not the media. ¾ Media/channel combinations often required. ¾ Winning consumer attention requires more creativity.

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HOW HAVE ADVERTISERS AND AGENCIES RESPONDED?

¾ Diversification and creativity ¾ Rethinking consumer planning around an organising idea ¾ Using new measurement techniques

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We manage what we measure!

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IF WE MEASURE IN FRAGMENTS, WE MANAGE IN FRAGMENTS

¾ To integrate marketing effectively managers need a tool that measures the contribution of different communication touchpoints… ….holistically

Market Contact Audit (MCA) THE JOINED UP MEDIA COMPANY

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P&G ENDORSEMENT

“An innovative tool that addresses an urgent need of the industry…it is based on a simple and solid consumer interview, from which a wealth of data is derived” Hans Ulrich Krause (Global Media Research - Procter & Gamble)

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WHAT IS A TOUCHPOINT? ¾ Each and every opportunity (or potential opportunity) for a brand category and a consumer to encounter ¾ Example of contacts: • Mass Media exposure: – TV ads, Magazine ads, Press Articles...

• One-to-One contacts: – Direct Mail, Coupons...

• POS experience: – In-store leaflets, gondolas...

• Events and Sponsorship coverage • Any other contact: – Word-Of-Mouth... – Packaging... – Web-Site or Internet Banners...

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TOUCHPOINTS: TELEPHONY ADVERTISER •Articles in newspapers and magazines •TV advertisements •Advertising on posters or billboards •Leaflets inserted in magazines or newspapers •Newspaper advertisements •Magazine advertisements •Advertising on buses, trains or taxis •Radio advertisements •Cinema advertisements •Information at airport or on airplane •Interactive TV commercial (when you press the red button)

•Promotional voucher or coupon •Magazines, leaflets, brochures in shops •Recommendation/advice from sales person •Shop window displays •Special in-shop display

POS (5)

Unbranded (4)

Sponsorship (4)

•Sponsorship of TV programmes •Sponsorship of music or arts events •Sponsorship of sports events, teams or sportsmen/sportswomen •Sponsorship of radio programmes

Mass (11)

Direct (12)

•Helpline or call centre •E-mail message •Special offer through my work •Text message or telephone call from phone company •Welcome pack or users' manual •Customer magazine sent to me by my phone company •Internet sites •Information received with monthly bill •Offer in conjunction with another company (eg credit card company) •Advertisements on the internet •Sales people in a public place (eg railway station, shopping centre, café or gym) •Mail from a phone company

•Recommendation/advice from a friend or colleague •Prompt from family or friends to join their network •Recommendation/advice from my spouse or partner •Recommendation/advice from my kids

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TOUCHPOINTS: COFFEE ADVERTISER

•Free sample trial at store when

•Sponsoring of sports events

you buy coffee

•Live ads/events sponsored by

ads •Cinema advertising •Advertising in newspaper, journals and magazines (without price information)

POC

Mass

•Billboards •Discounts through radio advertising

price reduction/information •Shelf positioning in store •Packaging that is functional •Special gondolas to make coffee promotions more visible •Nice layout in shop window

leaflets •Product tasting at work •Smaller packages to initiate trial of new brand •Posted flyers without price information •Branded automatic espresso machine for home use •Recommended by coffee machine vendor

•Tried at a friend's house •My family used this brand

a coffee brand •Brand presence at sports events •Sponsoring of TV programs

Indirect

(e.g. buy 3 for the price of 2) or

Sponsorship

•Store flyers with promotions

POS

Generated by MCAutomated©. Integration® is trademark and copy-right owner of all MCA© products, tools and service marks

•Price reductions in newspaper

•Price reductions in mailed

1/1

•Radio advertising

•Free cup of coffee at store brand-promotion-stand •Free coffee sample handed at work •Café (serving coffee cups, pastries and cakes,…) •A specialized shop that sells coffee and related products (Special blends, beans,…) and serves cups •Branded coffee shops •Branded coffee machine at work •Branded coffee parasols in cafés

•TV advertising

•Recommended by a friend/someone who knows your taste

•Sponsoring of cultural events •Brand presence at cultural events

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MCA MEASURES BRAND EXPERIENCE ...

¾ … by measuring the degree to which consumers associate brands with contacts: Contact TV-Advertising

Brand A 40%

Brand B 30%

Brand C 20%

¾ Reflects the perceived weight of the intensity and impact of brand activities in a contact

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WHICH BRAND HAS THE MOST EFFECTIVE MARKETING MIX? ¾

Contact TV advertising Press articles POS Displays Direct Marketing

Brand A 40% 15% 50% 10%

Brand B 30% 30% 40% 20%

Brand C 20% 15% 60% 50%

Some associations are worth more than others! We need to weight the brand/contact associations by a factor that relates to brand choice.

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MCA MEASURES CONTACT VALUES ... ... as if contacts were sales - people: Effect

Cause

Rational

-

Information value

Emotional

-

Attractive value

Behavioral

-

Power value

¾ These 3 contact values are measured: • Per category • Per market • Independent of brands and message content

¾ Robust, validated questionnaire techniques ¾ Proprietary questionnaire THE JOINED UP MEDIA COMPANY

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AND MERGES THE THREE CONTACTS VALUES INTO A SINGLE INDICATOR:

¾ Contact Clout Factor (CCF): ¾ Information, Attractive and Power measured values • Merged via proprietary algorithm

¾ Single indicator for the capacity of a contact to influence attitudes

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THIS PROVIDES A HOLISTIC VIEW OF BRAND EXPERIENCE ¾Contact ¾

Associations

CCF Brand A

BEPs Brand A

BEPs Brand B

BEPs Brand C

BEPs Category

¾TV-Advertising

40%

70

2800

2100

1400

¾Press articles

15%

50

750

1500

750

¾POS Display

50%

30

1500

1200

1800

¾Dir. Marketing

10%

60

600

1200

3000

¾Total BEPs

5,650

6,000

6,950

18,600

¾BES

30%

32%

38%

100%

¾Etc.

¾CCF = “Contact Clout Factor”: ¾The capacity of a contact to influence attitudes ¾BEP = “Brand Experience Points”: Level of brand – contact associations weighted by the CCF. ¾BES = “Brand Experience Share”: Perceived cumulative weight of all brand communication activities relative to competition. THE JOINED UP MEDIA COMPANY

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MEASURES ARE VALIDATED…

¾ Brand Experience Scores delivered by MCA correlate with market shares at 0.80 on average. ¾ … In over 500 audits, covering 50 categories, in 25 markets and 18 languages

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… AND SUPPORTED BY MAJOR MARKETING SERVICES COMPANIES ¾ Global allies: ¾ PUBLICIS •

Starcom MediaVest Group, ZenithOptimedia

¾ OMNICOM •

OMD, TBWA

¾ DENTSU ¾ WPP •

¾ Categories ¾ ¾ ¾ ¾ ¾ ¾

Global market leaders in: Grocery/Beauty/Food Automotive Consumer durables Financial services Telecoms

¾ ¾ ¾ ¾

Markets: All continents 30 languages Developed & developing markets

Mediaedge:cia, Mediacom

¾ HAVAS •

MPG

¾ Pilots: ¾ ATKearney ¾ Video Research Japan (syndicated MCA™)

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WHAT KIND OF ISSUES CAN THIS DATA BE USED TO UNDERSTAND? ¾ Which contacts are critical to influence AND differentiate my brand? ¾ How much Brand Experience are we achieving, and how competitive is this? ¾ What are my brands’ strengths and vulnerabilities? ¾ How much return is my brand achieving per dollar invested?

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Generated by MCAutomated©. Integration® is trademark and copy-right owner of all MCA© products, tools and service marks

CLIENT BRAND: HOUSEHOLD APPLIANCE RATIO OF BUDGET/BEPS Budget Period: February 2003 - January 2004 100% 90%

5% 16%

4%

23%

80% 70%

19%

8%

60% 27%

50% 40% 30%

60%

14%

1/1 Indirect Mass

20%

POC 25%

10%

POS Sponsoring

0% Budget %

% of BEP

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Sample: Total (628)

OUR SERVICE TO RETHINKING COMMUNICATION PLANNING

RESEARCH ACTIVATION

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THE PROMISE OF RESEARCH ACTIVATION

¾ Simply, to turn research into insight and action plans ¾ Specifically,we work with research outputs • To draw conclusions and observations from their research that are useful in developing marketing communications. • And help brands to make decisions.

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HOW WE MAKE IT HAPPEN

¾ We get an overview of the research / data sources that you have ¾ Then we break it up into “briefings” and use these as inputs to.. ¾ A structured series of workshops.. ¾ With a multidisciplinary team.

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WHAT VALUE DOES RESEARCH ACTIVATION DELIVER?

Better communications strategies and ideas ¾ Strategies for using communications more effectively and efficiently ¾ Ideas for better communications. ¾ A focussed communications strategy. Ownership and change ¾ Team ownership of the thinking,the action plan and the key metrics for measuring it.

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WHAT ARE THE TYPICAL OUTPUTS ?

Agreement on ¾ What the brand should do now ¾ How the brand can optimise its communications in future ¾ What the brand needs to find out more about ¾ What metrics will be used to evaluate and track progress

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WHEN CAN RESEARCH ACTIVATION BE USEFUL?

¾ When you want to take new research and build team consensus on its implications ¾ When you think the brand is under-performing ¾ When the brand is facing competitive entry. ¾ When you are in the challenger position needing to out think bigger spending competitors ¾ When a part of our audience may need a different approach ¾ When launching a line-extension ¾ As part of annual planning THE JOINED UP MEDIA COMPANY

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GOING BACK TO OUR PHILOSOPHY…… Everything is media…… ¾ How technology, lifestyle and measurement are causing us to re-evaluate our definition of what is a media contact And media is everything ¾ How existing and emerging media planning concepts drive consumer behaviour

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THE TRADITIONAL AIDA APPROACH Awareness

Interest

Desire

Action

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IN THE NEW MEDIA ENVIRONMENT A NEW UNIVERSAL FRAMEWORK FOR PLANNING IS EMERGING

Central Processing Learning Hierarchy

Dissonance Hierarchy Low involvement Hierarchy

Peripheral Processing Nudge THE JOINED UP MEDIA COMPANY

Source: Sue Elms: March 2005 39

RESPONSE HIERARCHIES AND THEIR STRATEGIC CONSIDERATIONS ¾ Central Processing • Happens in high involvement situations where brands are considered different • Role of advertising is significant in the marketing mix • Consumers engage with advertising… learn rational info very quickly, sensitive to placement, mood for emotional connections

¾ Typically advertising dominated communication which is continuous, medium frequency,with premium placement and multiple copy

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RESPONSE HIERARCHIES AND THEIR STRATEGIC CONSIDERATIONS ¾ Dissonance • Happens when there is high involvement, but alternative brands are not seen as different • Consumers sometimes experience the brand through means other than media brand advertising which leads to reappraisal and a move towards central processing

¾ Typically burst advertising tying in with promotional/ sampling activity

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HUNGARY: EXPERIENTIAL MARKETING

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RESPONSE HIERARCHIES AND THEIR STRATEGIC CONSIDERATIONS ¾ Peripheral processing • Happens in low involvement categories where brands are not considered different • Advertising is acting as a weak force..it’s as likely behaviour precedes attitude as the other way around

¾ Typically campaigns use repetition,consistency and cues should be used to get consumers to learn brands by mnemonics rather than advertising

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118 118 ADVERTISED ALL THE TIME, EVERYWHERE, TO REINFORCE NEW DIRECTORY ASSISTANCE NUMBER. LOTS OF CUES ON WINNING AND GETTING THERE FAST, NO ATTEMPT TO GET CONSUMERS TO PROCESS AN ARGUMENT

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RESPONSE HIERARCHIES AND THEIR STRATEGIC CONSIDERATIONS ¾ Nudge • Happens in very low involvement situations where brands are not considered different • Role of advertising is secondary to other marketing levers and its role is to nudge action • Consumers not motivated to process message so all you have to is avoid negative connotations

¾ Typically, campaigns concentrate on just “being there” as cost effectively as possible, driving a cue (but make sure cue is not an auto pilot to ignore). Cues work best on brand users. Increasing penetration may require a non-advertising route

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ANDREX

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IN SUMMARY….. ¾ Advances in technology and growth are allowing for measurability of total consumer connectiveness ¾ Measurement and accountability will unlock the potential of this most motivating of marketing philosophies ¾ It will create challenges for advertisers in terms of how they organise, approve and set budgets ¾ It will create challenges for agencies as functional specialism will have to be combined with a multi-functional perspective. This affects resourcing, organisational models and reward mechanisms

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