Media Planning in the “ME” MEDIA Generation

Anthony Coles, February 13th 2007

“It’s like a splinter in your mind”

“What is The Matrix (Web 2.0)”? or “ Can’t everything just stay as it is?”

“You have to understand that many people are not ready to be unplugged, and many of them are so inured, so hopelessly dependent on the system,

that they will fight to protect it.”..Morpheus, The Matrix 1999

What is The Matrix?…

The Matrix…

• 2006 - $11B– up 6%

AustraliaTrends in Ad spend - all media/ marketing communications

(1993 - 2006)

$4,790 $4,923$5,414

$5,914 $5,954$6,568

$7,061

$7,970$7,423 $7,514

$8,159

$9,072

$10,126

$11,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$'00

0's

Source: CEASA Report YE 31 December

‘noise’ up 40% since 2001

The Matrix...

• Internet category spend up 60%– All others up also

Trends in share of Ad Spend

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006

Press Mags TV Radio Outdoor Online Cinema

+ 4.9%

+ 9.5%

+ 3.5%

+ 6.5%

+ 8.3%

+ 59.8%

+ 13.5%

Sour

ce: A

BVS

Feb

07

The Matrix…

• Trends in Internet ad spend– $900,000,000 spent in all types of ‘online’ ads

• Display, Classifieds, Search

Source: ABVS Report YE 31 December

Source – ABVS Dec 2006

LATE PRESS:• The Australian

online advertising market grew 61.5% in 2006 to reach $1,001 million

• The 2006 calendar year revenues for General Advertising grew 56.2% over 2005 to $303M, with revenues for Classifieds Advertising up by 45.1% to $299M and Search and Directories Advertising up by 81.4% to $399M.

What was Web 1.0?

Travel

Banking PropertyJobs

Cars

Missed that train did you?

Free email…

News

Books, Music… everything else

Looking for things…

???…

What were people doing?S

ou

rce

– N

iels

en N

etV

iew

Dec

200

6

Where exactly are they going?

Source – Nielsen NetView Dec 2006

What are advertisers doing - Display?

What are advertisers doing – Search/ Directories?

What are advertisers doing - Classifieds?

Market Share Classified Ads

2005 2006

So

urc

e –

AB

VS

Dec

200

6

Big Spenders 2006

• All Display• Top 5 FI’s

– $73,000,000

So

urc

e –

Nie

lsen

Ad

Rel

evan

ce J

an-D

ec 2

006

Tipping Point 2006 – broadband + video = UGC

Social Networking takes hold

• News buys MySpace• Google buys YouTube• ANPL launched AdelaideNow

0

2000

4000

6000

8000

10000

12000

'000's

1st Qtr '06 2nd Qtr '06 3rd Qtr '06 4th Qtr '06

2006

Unique Visitors Search Engines/ Portals &/or "Communities"

Google NineMSN Yahoo7 Fox Int (MySpace) BloggerSo

urc

e –

Nie

lsen

Net

Vie

w 2

006

Web 2.0 is born…

What is WEB 2.0?

Web2.0’s Challenge to Traditional Media Planning

Media Planning 101…• Hit the Right People• In the Right Environments• With the Right Messages• At the Right Times• In the Right Amounts• For the Right Cost• To make a measurable difference to an advertiser

TV

CPT

Print

CPM

Radio

Cume

OOH

OTS

WEBCPM

CPC

Efficiency- Reach/ Frequency- OzTam- Roy Morgan- Nielsen- Etc.

Effectiveness- Brand tracking- Calls- Traffic- Leads

Advertising/ Media Planning 1.0

• Linear• Silo’s of information• Tyranny of tools

Needs to sell ‘stuff’

‘consumers’ access/ create their own ‘stuff’

Business decidesto make ‘stuff’

Buys space/ time in media to tell people

about their ‘stuff’

Media also need to convince people to buy their ‘stuff’ so advertisers buy their stuff

We’re all ‘stuffed’!!

Planet’s stuffed

The Media Planner/ Marketers challenge today…

• Proliferation– More media to choose from

• Addiction– More media to be with

• Multi-Tasking• Avoidance• Shift of Control• Consolidation of industry players• Digitisation, and• New Economics

– Spiraling costs to reach v reducing effectiveness of media– Content via publishers v content directly to people– Clients asking increasingly, “show me the value”?

Digital Publishing Eco-System

Idea

Banner Ads

Full-page Banners

Branded

Mobile Phone

Sites

iTV

Elevator Advertising

Household PDAs

Branded Sceens

Viral Mail

Branded Games

Mobile Mkt.

PDAs

PVRs

Telematics

Screens on Exercise Bikes

Image Content ScannerBar Code

ScannerBranded CDs

Branded Web Content

Outdoor

Mail

Retail Point of Sale Face-to-Face

Directory Marketing

Event/ Sponsorships

MagazinesRadio

Television

Telemarketing

Fax

Customer

Service

Newsprint

Placement/

Product Sampling

1. Proliferation of media options

2. Addiction

TV Radio Mags. Newsp. Internet Total

1945 -- 3.0 .3 .8 -- 4.4 1955 2.4 2.7 .3 1.0 -- 6.4 1965 3.5 2.8 .3 .7 -- 7.3 1975 3.7 3.0 .3 .6 -- 7.6 2000 4.11 3.0 .3 .6 .3 8.3 2002 2003 2004

4.21 4.16 4.19

3.0 3.0 2.8

.3

.3

.4

.6

.6

.6

.3

.3

.3

8.4 8.4 8.3

Source: Media Dynamics, Inc. Television Dimensions 2004, p.333

• Average daily media usage

3. Multi-tasking

• The 32 hour day

4. Avoidance

• 3,000+ messages a day

60% of people passing a poster site do not see the poster

SMG Project Visibility/Starsight

52% of radio “listeners” do not listen to radio ads

SMG Radio Effectiveness Study

19% of magazine “readers” don’t look at the ads

SMG Print Positioning Study

86% of TV “viewers” claim not to pay attention to regular commercial breaks

SMG Event TV Studies

77% of TIVO HHs fast-forward past commercial time

SMG TIVO Study

4. Avoidance

36%Remain

17% Left the room

13%Paid no attention

26%Paid

partialattention

3%Surfed away

5% PVR ad skipping

Source: Media Dynamics

4. Avoidance – the ‘shrinking’ commercial

I’ve seen this before

Show mesomething

new

I want to simplify my choices

Do I needthis

information?

5. Shift of Control

Devices

PC’sDESKTOPS, LAPTOPS, MACS.

GAME’sXBOX, GAMECUBE, PS 2, GAMEBOY.

MOBILE’s

BLACKBERRYS, BLUETOOTH?

MUSIC

IPOD, ITUNES, WALKMAN, ETC.

TV’sVIDEO ON DEMAND TIVO, HDTV, ETC.

yesterday today tomorrow

LEARN + SHARE

EXPLOSIVE CHOICE

CONSOLE + MOBILE

TALK + EMAIL

MP3 PLAYER

LEARN + SHARE + ENTERTAIN

ON DEMAND NETWORKED

NETWORKED CONSOLE +

MOBILE

TALK + EMAIL PHOTO/VIDEO

WIRELESS DIGITAL MUSIC PLAYER

LEARN

CHOICE

CONSOLE

TALK

DISCMAN

5. Control Shift – Technology drivers

yesterday today tomorrow

CONSUMECONSUME +

COMBINE

CONSUME + COMBINE +

CREATE

EXPLORE EXPLORE + SHARE

EXPLORE + SHARE + EXPRESS

5. Control Shift – Human-drivers

6. Consolidation + new kids on the block

In the U.S., these suppliers control nearly:

• 80% overall national network inventory

• 40% national cable inventory

• 25% national print titles

• 9-11% local broadcast stationsSource: Media Tracker

Google + Yahoo each with market cap of $50B

• Viacom + Walt Disney $30B ea

PC/InternetPC/Internet

Wireless/MobileWireless/Mobile PhonePhone

Non-PC Internet Access

Smart Phone

Personal Digital Assistant (PDA)

TVTV

Wireless Internet Wireless Internet EvolutionEvolution

Television/PCTelevision/PCConvergenceConvergence

Personal Video Recorder (PVR)

Broadband Video

Streaming Audio

Enhanced TV (ETV)

Game Console

Interactive TV (ITV)

Wireless Handheld Access & Content

Source: TV 2.0 “Are You Ready” Version 2/03

7. Digitisation

8. New Media Economics

• Invest in the Strategy discussion– integrate understanding of new media landscape into business/

comms planning + core creative idea

• Bring media into the conversation early– Influences your metrics, strategic ‘upfront’ opportunities

• Build on the cumulative strengths of a layered approach– “seamless, multi-level creative event”

Reach media

Lifestyle media

WOM

Tipping Point

$175.8Billion$178.4

Billion

MoneySpent on

Direct Access toMedia Content

MoneySpent on AdSupported

Media2003

Source: Veronis Shuler 2004 Report

So, how to include ‘new’ media into your planning?

• Fund/ allow agencies to do what they do best– Create new ideas

• Remove the separation– of ‘old’, from ‘new’ media– of ‘creative’ from ‘media’ agencies

• Build on the inter-connectedness of the life of people– “Relevant Life Moments”

• Balance Reach (CPM/CPT) with Attraction (WOM)

It’s all about choice, or the “sense” of control

• Advertising in the 40’s -’70’s– XYZ Co. makes washing powder– this ‘new media’ is emerging– “Let’s create our own program to show people how good it is”

• radio/ tv

• Control with manufacturer, opportunity for media, consumer – passive

The sacred trinity – Home, Husband, Respectability

The ME MEDIA generation

• Me media– Reader/ viewer is editor, is publisher, is ‘consumer’– Control with individual, challenge for traditional publishers

The future…

• Location-based marketing– Bluetooth/ 3G

The future…

Impact on Media/ Marketers

• Loss of Control = Grief– stages of dealing with grief

1. Shock/ paralysis

2. Denial/ avoidance

3. Anger/ projections of

4. Bargaining / a way out

5. Depression/ realisation of the inevitable

6. Testing/ Looking for alternative solutions

7. Acceptance/ Finding a way forward

• What symptoms are you displaying?

Starcom’s ‘Grief’ resolution process

• Things we know• media landscape

• consumption habits• competitors sov• developments

• proprietary research

• category experience

• local media market

• Things you know• business knowledge

• category experience

• recent research

• plans for future

• Shared knowledge• brand insights

• customer insights

• competitor insights

• media opportunities

• Ideas/ Opportunities• message/ content

• medium/ contact opportunities

Communications strategy development

planning around context…

And what is Web 3.0?

• “The Matrix cannot tell you who you are” Trinity• The Semantic Web

– Metadata web

• The meaning expressed in a language, or code• The relationship of signs to objects• The relation of signs or other signs, or concepts• http://www.well.com/~doctorow/metacrap.htm