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BRANDING IN THE NEW MEDIA ENVIRONMENT
Dr. Larry Chiagouris, March 2006
Presented by Dr. Larry Chiagouris
Associate Professor of Marketing, Pace University
And
Senior Partner, BrandMarketing Services, Ltd.
Dr. Larry Chiagouris, March 2006
Dr. Larry Chiagouris, March 2006
Experience on100 + Brands, Including:
Dr. Larry Chiagouris, March 2006
Flow of my remarks
• The Brand Environment
• The Media Environment
• Recommendations to Protect brands and Thrive in the Future
Dr. Larry Chiagouris, March 2006
Thrive in the Future
The Brand Environment
Dr. Larry Chiagouris, March 2006
Key cultural trends impacting brands
• Fake reality
• Fake celebrity
• Pornography growing
• Morality movement growing
• Dissatisfaction
• Control freaks
• Quick impressions…fast decisions
• Everyone expressing an
Dr. Larry Chiagouris, March 2006
growing • Everyone expressing an opinion
Multitasking!!!
More competition than ever before
Dr. Larry Chiagouris, March 2006
More competition than ever before
More government involvement than ever before
Dr. Larry Chiagouris, March 2006
More government involvement than ever before
More new products are being introduced than ever before
Dr. Larry Chiagouris, March 2006
More new products are being introduced than ever before
There are more consumer segments to sell to than ever before
Dr. Larry Chiagouris, March 2006
segments to sell to than ever before
The consumer has more places to shop than ever before
Dr. Larry Chiagouris, March 2006
The consumer has more places to shop than ever before
The consumer is more price resistant than ever before
Dr. Larry Chiagouris, March 2006
The consumer is more price resistant than ever before
The consumer has more media choices than ever before
Dr. Larry Chiagouris, March 2006
The consumer has more media choices than ever before
I Control
30%
30%
36%
54%
56%
On-demand access to first run movies
On-demand access to popular cable network shows
On-screen interactive program guide
Record one show while watching another
Skip commercials easily
I Control - What Consumers Want
Better Television/Time Management
Dr. Larry Chiagouris, March 2006
21%
22%
28%
29%
29%
30%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100
%
Get digital music channels
One-button access to news/sports headlines
On-demand access to premium-channel movies
Pause live TV
On-demand access to popular network shows
On-demand access to first run movies
Source: Forrester Research, 2003
Consumer Control Landscape
DVR8.0 Million Homes
Video On Demand 18 Million Homes
Ad Targeting108 Million
Homes
Satellite Radio & Internet Radio
6.0 Million Subscribers / 70%
Interactive/Place Based Out of Home –
400M BB’s
DVD Player55 Million Homes
IPTV 1 Million Homes
Dr. Larry Chiagouris, March 2006
Dual Sync45 Million Homes
Gaming50% Penetration
Interactive Program Guide16 Million Homes
Virtual Channels18 Million Homes
65.2% cell phoneU.S. penetration
Subscribers / 70% Penetration
Internet / Broadband155 Million Users / 57 Million BB Users
Portable Audio
20+ Million Units
Navigation
Interactive Program Guides
Navigation Overview
• Screen listings
• Interactive
Dr. Larry Chiagouris, March 2006
• Interactive
• Future will bring links embedded on screen
Interactive Program Guide Usage
• % of TV viewers use the IPG on a daily basis 83%
• Avg. # unique ads HHs exposed per day/August: 5.3
• Avg. # of IPG sessions per day/per HH: 8.5
• Avg. length of IPG session (seconds): 53.3
• Total minutes spent using IPG per day: 7.6
TV Guide and Nielsen top line findings on IPG usage
Dr. Larry Chiagouris, March 2006
• Total minutes spent using IPG per day: 7.6
• Avg pages per session: 1.8 pages
Source: Nielsen, TV Guide, March 2004
Consumer Control Video
On Demand Video Digital Video Recorder DVR
21
DVR Usage
What DVR features do consumers enjoy the most?
Dr. Larry Chiagouris, March 2006
The ability to record multiple programs, skip commercials and pause and rewind live TV, are top reasons consumers love their DVR
Source: Forrester September 2004
Commercial killer???Percent of TiVo ads skipped during programming
75% Ads Skipped During Recorded Programming
60% Ads Skipped During Real Time Programming
Percent SkippedWhen
Category ads skipped during programming
Dr. Larry Chiagouris, March 2006
50%Drugs
36%Beer
79%Feminine Products
79%Auto
85%Soft Drinks
94%Credit Cards
94%Home Products
95%Fast Food
Percent SkippedCategory
Source: TiVo
Consumer Control Video
On Demand Video On Demand (VOD)
RESUME VIEWING
SEARCH
Health & Wellness
FreeZone Features
Dr. Larry Chiagouris, March 2006
Health & Wellness
Automotive
Underground Groove
NOKIA Style & Fashion
Food & Wine by Gallo
Main Menu
Back
Help
View Now: NOKIA Style & Fashion
Consumer Control Video
Broadband
Broadband: Usage
• The faster the consumers internet access, the more time
they spend online, view web pages, and access the internet
16.538: 32: 37Modem 28.8/33.6K
15.1210: 07: 46Modem 14.4K
Visits per personTime Per PersonSpeed
Dr. Larry Chiagouris, March 2006Report: Web Connection Speed - Property Period: Month of October 2003 Panel Type: Home
35.5420: 16: 37DSL
35.9219: 25: 41Cable Modem
33.715: 44: 27ISDN
19.711: 03: 57Modem 56K
16.538: 32: 37Modem 28.8/33.6K
Dr. Larry Chiagouris, March 2006
Ad Targeting
Targeting Penetration
Landscape: Addressable advertising will be delivered on the HH level, targeting consumers set top boxes based viewing habits and household characteristics. Result: Creative unit would run across multiple demographics and markets speaking to individual customers and consumers on the household level with a highly targeted and relevant message
Caucasian Family –Customer
College CampusConsumer
Dr. Larry Chiagouris, March 2006
highly targeted and relevant message
Seniors – Consumer African American
Newlyweds Consumer
African American Family Customer
Hispanic FamilyCustomer
Single Female-Consumer
Teen Girls -Customer
Gamer Digital Landscape
Internet
82 Million Casual Gamers
Virtual Channels
5 Million Homes
On Screen Play Along
500,000 Homes
DVD Penetration 50%
Who is the Gamer?
• Today 150 Million Americans play video games
• Skews male 60%/40%
• Average Game Player Age: 29
Who is the Gamer?
Dr. Larry Chiagouris, March 2006
Mobile Phone
65% US Penetration
Mobile SystemPersonal Computer
76 Million Home Computers
Console Systems
HH penetration 50%
Males 8-34 75%
Arcade
DVD Penetration 50%
Two Screen Sync to
Broadcast
45 Million Homes
Age: 29
• Average Video & Computer Game Buyer is 36
• Plays video games a minimum 5 times per week
• Time spent playing per sessions, minimum 30 minutes
Source: The Entertainment Software
Association, May 2004
Gaming: The Next Frontier
• While the dominant demographic for hardcore gaming is Males 18-34, the 35+ Female segment is one of the fastest growing gaming populations (primarily online gaming) Virtual online tournaments that can attract hundreds of thousands of players AND spectators
Dr. Larry Chiagouris, March 2006
• Gamers are now spending as much time playing as they do on the Internet as a whole (1 hour per day each)
• Game Advertising is forecasted to surpass the $1B mark by 2010 (Yankee Group)
*Jupiter Report – US Video Games Forecast 2004** Jupiter Report – Mobile Gaming Revenues 2003 - 2009**@Plan, 2005
In-Game Marketing for N-Gage
Dr. Larry Chiagouris, March 2006
I Connect
Dr. Larry Chiagouris, March 2006Mobile
The Opportunity is Large and Growing
• Mobile messaging is projected to grow from $1 billion in ‘05 to $5 billion in ’09
• Largest growth areas are Utilities and Media and Gaming
$3,500
$4,000
$4,500
$5,000
Graphics & Themes
Dr. Larry Chiagouris, March 2006
• Spending on mobile marketing is projected to reach up to $253MM in 2005 and could reach $750MM in 2009; (growth rates are projected between 22% and 31.7%)
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2002 2003 2004 2005 2006 2007 2008 2009
Graphics & Themes
Ringtones
Utilities & Media
Gaming
Source: Zelos Group, 2004
The Three Categories of Mobile Marketing
• Mobile advertising: branding or lead and sales generation programs: downloads, ringtones, wallpapers, sponsored content, custom applications, beamed applications, demo/geo targeting on PDAs)
• Increasing Circulation & Affinity Marketing via Mobile Publishing: delivering valuable content…branded
Dr. Larry Chiagouris, March 2006
Publishing: delivering valuable content…branded content to mobile devices
• Mobile Customer Relationship Management: SMS/MMS campaigns
Examples of Mobile Marketing Techniques
SMS – with 5 digit code (opt-in, confirmation, etc.)
WAP – Ad units with content download integration (e.g. branded wallpapers)
Dr. Larry Chiagouris, March 2006
Sponsored content withindownloaded applications
Reebok Whodunit
Email Clue #1 Text Message Clue #2
Examples of a Mobile Marketing Campaign: Current Clients: Dialog Management
Dr. Larry Chiagouris, March 2006
Podcasting
Dr. Larry Chiagouris, March 2006
Podcast Advertising
• No ad model developed for podcasting space so we can be as creative as we want
• Audio ads can be imbedded directly in the downloaded data • Contact Podcaster
• Contact terrestrial radio station who is podcasting content
• Develop your own podcast for consumers
Dr. Larry Chiagouris, March 2006
• Not limited to traditional audio commercial length
• Non cluttered advertising environment, your message will definitely be heard… If you build your own Podcast must market. If you build it will they come
• Dailysourcecode.com
• Ipodder.org
• Podcastingnews.com
• Podcast.net
• Podcastalley.com
Consumer Podcasts
Dr. Larry Chiagouris, March 2006
• Podcastalley.com
• Podcastbunker.com
• Downloadradio.org
• Audio.weblogs.org
• Allpodcasts.com
Branded Entertainment
Dr. Larry Chiagouris, March 2006
Protecting Brands in an age of media fragmentation, product
proliferation, consumer segmentation, retail dispersion
and increased competition:
Dr. Larry Chiagouris, March 2006
and increased competition:
Recommendations and ideas and a word of caution
Back to the Futurewith Word of Mouth
and Social Networking?
Dr. Larry Chiagouris, March 2006
Writing on walls and smoke signals
Dr. Larry Chiagouris, March 2006
Modern examples
• Procter & Gamble and the Tremor initiative
• Friendster
• myspace.com
Dr. Larry Chiagouris, March 2006
• myspace.com
The first words of caution
Dr. Larry Chiagouris, March 2006
SCALABILITY AND CONTROL!
Brand building issues
• Privacy and government intervention
• Competition and control among industries
Dr. Larry Chiagouris, March 2006
Recommendations for Navigation Pages
• Target brand messages within Music, Sports and Technology programming
• Incorporate long form brand videos that consumers can access from their Interactive Program Guide
Dr. Larry Chiagouris, March 2006
Program Guide
• Work with Interactive Program Guide companies to customize ad units and executions
Recommendations for Gaming
• Remember that gamers are not all young or male
• Remember that gamers who are young are now developing their brand loyalties
Dr. Larry Chiagouris, March 2006
brand loyalties
• Remember the limits to the human eyesight….do not put too much on the screen
Recommendations for VODs and DVDs/DVRs and Podcasts • Extend media buy to include VOD placement within
partners channel
• Sponsor VOD/DVD events
• Develop custom creative for VOD
Dr. Larry Chiagouris, March 2006
• Develop custom creative for VOD
General Recommendations
• Pay attention
• - Educate yourself
• - Watch and learn
Dr. Larry Chiagouris, March 2006
• Communicate
• - Talk to peers
• - Talk to experts
General Recommendations
• Plan with Flexibility
• - Begin to assess the opportunities
• - Design change into your plan
• - Plan based on tasks and not only the year
Dr. Larry Chiagouris, March 2006
• - Plan based on tasks and not only the year
• Review and refine frequently
• Repeat As Needed
General Recommendations in terms of intellectual property
• Take a lesson from Coke
• Take a lesson from Microsoft
Dr. Larry Chiagouris, March 2006
Recommendations
Establish Partnerships:
• No one person or company or country is big enough to succeed alone in the new media
Dr. Larry Chiagouris, March 2006
alone in the new media environment!!
• And there are many willing partners!!
THANK YOU AND
Dr. Larry Chiagouris, March 2006
THANK YOU AND
GOOD LUCK