El Futuro De Los Medios Masivos

VII semestre, Universidad Panamericana

Preparado o adaptado por MBA Nicola Origgi

Media characteristics

A general overview of Europe and the U.S.: what can be applied

here in Mexico?



What is the Media?

The “media”: The umbrella term that includes all types of print and electronic communication (TV, radio, newspapers, magazines, outdoor, mail, etc.)



Myth: media = advertisingMyth: media = advertising

Initial perspective

Myth: media’s only job is to expose the messageMyth: media’s only job is to expose the message

Not true:media is used by all types of MC messages

Not true:media also must add value for their clients



Different Media Classifications

++



Mass MediaMass Media

Vehicles reaching “the masses” (large, diverse audiences)


Mass MediaMass Media



Mass Vs. Niche Media

Niche MediaNiche Media

Vehicles focusing on a defined group who share a characteristic

Vehicles focusing on a defined group who share a characteristic



• During the 1960s, mass media advertising accounted for more than 2/3 of the total MC budget for many companies. Over time, however, management began demanding more accountability on MC budgets. The result has been a budget shift to other MC functions, particularly sales promotion, whose results are more easily measured than advertising, and to public relations, whose costs are considerably lower than advertising.



Different Types of Media

Addressable Media: Carry messages to identifiable customers or prospects

Interactive Media: Allow both companies and customers to send and receive messages



More Personal/Addressable Media are Generally More Intrusive



TVTV



About Mexican consumer

• In Mexico a Tv set is tuned for approximately 8 ¼ hours per day– Range from MTY to PUE

• However this does not mean exposure: 4 ½ hours per day– Local peculiarities



About Mexican consumer

• What about National Open TV?– Chihuahua has a higher rate of closed TV

penetration than open TV– In NL Local TV is a all a case…MEO– In AGS, JAL there is a strong preference for

local news…– In YUC local channel SIPSE is the leader,

however press is the most relevant media…– Radio has a stronger penetration in the South

of Mexico than TV…



Did you know that?

• Morning news…more people get them from TV than any other media…Radio is on the second place…

• More TV is watched in winter time…and that some periods are almost dead…

• Time spent watching TV is also spent on doing some other activities (eating, reading, etc.)

• A good % of adults are multitasking while watching TV (navigating, listening to music, etc.)

• Saturday night TV has fewer viewers but they are more engaged..



TV (tendencies)

• Friends on NBC• Appointment TV: is it still so important?

– What about cable? – There are so many way to enjoy yourself…

• US and Europe: are the traditional sit coms tired? Yes but…– Just think at shows such as 24 or Prison Break (FOX)– Where and how do you think people watch sit coms?– Do you know Survivor? This has allowed CBS to have

a larger audience than NBC for the first time in years…what does that imply?

• Think: what was the outcome of the “series de Televisa”?



TV

• Reality Shows are becoming the top-rated TV Shows in the US:– American Idol in the US….– And here in Mexico La Academia…

• Marketers look at the program's relevance to the audience: do they lean back or towards as they are watching it?– People remember ads when:

• They watch purposefully: school, job, training or simply to remain part of their social network



TV

This was not that great success (so far)….but

(Digital Video Recorder)….

Do you know what are they for?Currently they are just in the 8% of US House=Holds; by 2009 it is expected 49% will have it.In Mexico it has just arrived with many limitations

What will that imply???



TV (tendencies)

• What will users will be fair likelier to watch lively?– Live sports – Events TV such as The Academy Award,

Super Bowl, Grammy’s, Sports– Useful stuff such as News, Weather

Broadcast…

(think also at Video-on-demand from cable

Companies like Sky Premiere….)



TV (tendencies)

• Consumer generated ads….You Tube– Do you know Chuck Norris and Mr

Huckabee?

• Viral marketing might be a good option…but the worst nightmare…– Jet Blue, Mastercard connected successfully

with internet savvy young people– …but CHEVY (Tahoe) was a total disaster

• The environmentalist people attacked them..



TV (tendencies)

• Do you know Al Gore’s Current TV?– It’s the only network based entirely around viewer-

created content…– It’s not only “journalism”, it’s also advertising…– Consumer-generated advertising to be exploited by

brands to reach inexpensively internet oriented consumers through a viral campaign (You Tube, Blogs, Mails, etc.)

• Some success stories: Mastercard, Sony, Converse, Jet Blue…

• However things can go awry…Chevrolet Tahoe



TV

• Ratings: 1 rating point represents 1 % of the total households in Mexico with a TV. On cable TV, anything over 1.5-2% is something to get really excited about; on open TV the tops shows earn between 15 and 25% with peaks up to 33-34%

• Share: This is measured in the % of television sets tuned into a show. So, if Lopez Doriga gets a 56% share, then 56% of households watching TV at 10,30 PM on a given Monday were tuned in Televisa.



• What is the difference between rating and sharing?– Target 19-49– Target P 4+– What does a 2.7% share in 19-49 means?

• CPM (cost per thousand): ad rates• Rating: ad rated• GRP: gross rating points



• Shortcomings:– How many viewers are really watching from the

household where the set is on? Is anybody really watching?

– Is really effective this metrics?– Furthermore, IBOPE only measures MEX, GDL, MTY:

what about other cities? Are they really watching you?– Local TV in Mexico can’t tell they have a x% rating

appreciations can only be based on qualitative bases or personal appreciations….



• Shortcomings:– Do you know the case of the anchor women

(naked) in Primetime Live in Cleveland??



• Reach versus frequency strategy– Rubén Mendoza versus Peña Nieto

• Pro’s and Con’s

• In the future, ENGAGEMENT will be the relevant metrics…

• Ratings are overrated (Quote: David Verklin)



TV Contents

• Do you know the American Family Association and the Methodist Rev. Donald Wildmon? (U.S.)

• With that kind of intimidation from these kind of movements, marketers (and networks) must pay a lot of attention…– Desperate Housewives (they did not care to…)– Nip/Tuck (sex)– Survivor and GM (race issue)– On defensive…P&G (that’s interesting)



TV Contents

• What does this example teach us?– Reluctance to take risks: contents will

standardize and will avoid being controversial– Pay attention at where you advertise…– …and cash dividends….– …and get them happy with you…– …however, don’t let them press you

• Eg. Disney and The Chronicles of Narnia

– Advocacy Groups will definitely become an issue very soon in Mexico as well



TV CONTENTS

• However…

• Superbowl is still super

• América – Chivas is still super…

Live sports and event programming will

remain part of our culture…just be smart

when you negotiate them!!



Content branding: Product Placement

• Connect your brand with story, actor, talent: it is Brand Integration

• Investment in the USA in 2006: 6 BLN $ (+65%):– 8,303 product placement in the Top 10

Movies– Product placement on 7 out of 10 reality

shows



• Product placement, if well done, foster:– Brand visibility– Reinforce attributes through associations– Connect the Brand to well known talents



• Product Placement might be:– No integrated / no expressed– Integrated / expressed– Integrated / used– EmbeddedRules:1. More integrated more effective2. Right vehicles influence context: manage the

conflict advertisers vs producer3. TRUST is the base of product placements in brand4. Look for deeper, emotional, subconscious level



QUALITY

EMOTIONAL

RECOGNITION

SUBCONSCIOUS

EMOTIONS DRIVE CONSUMERS

Source: Lee Hunt



• “Engagement will be critical in the 21st Century: it will replace soon the GRP”

• How to position your brand?

Differentiation should evolve to:– Correspondance– Alignment– Beneficial environments– Valued experiences



• In product placement tradicional media metrics aren’t effective:– Eg. We don’t know how frequency really

works



• 5 golden rules for Product Placement:– Put it in a Quality Show– It must be relevant– It must engage

• Work better in News and Sports

– It must involve: consumer will want to buy what he sees

– It must capture attention• Works better at the start of the program



• Product placement versus Spots (source: AC

Nielsen):

– Less brand recognition (40% vs 47%)– More brand feeling (58% vs 53%)– More purchase interest (38% vs 36%)

Consider associating Product Placement with

traditional spots: it boosts this indicators

(57.5%, 59%, 45% respectively)



• Brand familiarity is the key driver

• Integrated Promos (advs on future shows) is an excellent way: it must give valuable information about the show in order to work…Be carefull!

• Eg: E! Ent. (tickers), VH1, FOX,…



• Procuct Placement:– Build brand awareness / familiarity– Brand association– Sales– Good to launch a new product if there is

already and established brand– Spread word-to-mouth



• Be aware of:– Target carefully– Ensure integration verbally and visually– Be relevant– Respect creative nuances– Integrate with other brand characteristics– Evaluate with an established metrics– Rules must be clear



• Some good examples….– Nokia in Mexico– Domino’s Pizza in Mexico

• And some horrible examples…– As much as you like…

• Where can you see brand / product placement?– Movies– Series– Reality shows– Live Events but also…– Video Games– Theater– Books– Songs…etc. etc. etc. etc.



NEWSPAPERSNEWSPAPERS

What will the future give them?



Newspapers

• Did you know that?– Many readers are engaged in other activities

while reading– More newspapers are read on Sunday and

Monday – Local section are the most read…– Local peculiarities are extremely important

here…



Newspapers

• Strengths– Reader education and

income (not always)– Tangible– Reader loyalty– Short lead time– Low production cost– High one-time reach– Good to give long and

detailed explanations

• Weaknesses – Poor reproduction– Readership is

declining– Media wast– Cluttering



• 3 ways of advertising:– Classified– Display– Inserts

• Publireportajes• Encartes



• Why is the circulation of the main newspapers in the US is declining?– Citizen journalism– Craiglist (mercadolibre.com) – Time lag between news happening and

people reading it sense of community and is being lost

– Free Press is also to blame• There are 100 new free big city dailies

nowadays…



• METRO INTERNATIONAL– 18.5 millions free dailies– In 21 countries…– In 17 languages– And in 83 major cities– What about their operation costs?

• A traditional Paper: 340 newsroom people, an ad page can cost as much as 17,000 USD (The Baltimore Sun)

• A free paper…20 newsroom people, an ad can cost as much as 2,400 USD (The Baltimore Examiner)

• Assignment: find out the same data between REFORMA and METRO MEXICO DF



• METRO INTERNATIONAL– These are magnet for younger readers: 74%

of METRO readers are < 49 años….news-lite style

– People can get news anywhere…the perceived value of traditional newspapers is eroding



• Did you know that?– Newspapers have 2 tier pricing– The most successful newspapers will be the

local and community specificity based: just think at some examples here in Mexico

– Newspapers are going online…however this is only 5% of their total revenues in the US



• Philip Meyer “The Vanishing Paper”– Newspapers in 10-12 years will look radically

different than today• They may be delivered electronically through a

scroll down system on your PDA or cell phone• A lot will simply disappear• The survivors will be a very premium exclusive

product or they will go ultralocal• They will be fully interactive…• ¿Is he dreaming? ¿Has he drunk? ¿Or he is

visionary?



OutdoorsOutdoors

Why do they pray for traffic jams?



Outdoors

• Pro’s– Localized– Frequency buildr– It is not on demand:

you have to see it

• Con’s– Low attention– Very short exposure

time– Visual contamination:

they may get lost– Zoning restrictions



• They may be fixed…

• …but they are more and more becoming electronic billboards that change static messages dozens of times a day…– They will ultimately replace the billboards (US

Outdoor Advs. Association)



• What does it change for a consumer? Almost nothing

• What does it change for a marketer?Almost everything:– Flexibility: you can target specific area by day

part or day of the week or message…– You buy time instead of space– Eg. Flat Panel TVs in Office Elevator: lunch

time is prime time!!



• So what does outdoor mean today?– More than 200 formats

• Ads on buses• Plaques atop taxis• Coasters in bars• Shopping carts• Airport signage• Street furniture• Etc.



• What do they promote?– 70% are local business– It is growing very fast because of technological

innovation, creativity,…in 2006 were more than 6% of total media investment in the US (2.3% in 2004), ¿in Mexico? Find out.

– Good opportunity cost compared to TV– Can you measure its effectiveness?

• They have started to…Nielsen Outdoor, IBOPE, etc.





• Does it work?– An example: “Sharlene Wells, Miss America”

stayed for over a month in all billboards all over town that were not sold…

– What was the result?– Ask who is Miss America?

• After the campaign 12% of people were able to tell that unaided,

• before a mere 1%



• Furthermore it is becoming interactive…– It can talk to you (via short wave radio link)…– Download data (Street Beam Devide)– Change messages as you stroll past (through

motion detection…)– Please note: pray for traffic jams..



MagazinesMagazines



• Strength:– Audience selectivity:

possibility of segmentation

– Expertise environment– High credibility– Loyal readers– High quality– Relative long life of

ads.

• Weaknesses:– Long lead time– Long production time– Low mass reach (but

check pass along rate)– Costly production– Low frequency

(weekly, monthly, etc.)– Difficult to measure

penetration



• 2 kind of magazines:– Restricted circulation– Free circulation



RadioRadio

What about digital radio? Is the AM really dead?



• Strengths:– Audience selectivity:

segmentation at its highest

– Frequency builder– Low production cost– Short lead time

• Weaknesses– Background media

low attention (if any)– Low reach– Only sound…– Short lived message



• It is a very loyal media…local based, sense of belonging,…

• Loyal audience• In some parts of Mexico they are the leading

media (South East)• 10, 20, 30 seconds format• On air promotions• Brand sponsoring• It’s only hearing but do not forget some success

story used through radio…Sensorial Branding.



• Some topics to think about:– Is really radio that cheaper than TV??

Remember your target in terms of frequency and reach…

– Radio metrics– Is AM really dead?– What about digital radio?– Why is decreasing time consumers are

exposed to the Radio? Ipods, Cell Phones…new toys



CINECINE



• Strengths:– Audience is captive– Long exposition to the

message: 60 sec.– Spectacular, highly

emotional– Can be complemented

by brand messages in cups, seats, etc.

• Weaknesses:– Cost– Criteria of selling

screen in cine– Limited audience– Dispersion



Non traditional MediaNon traditional Media

Something you have to look at…BTL is increasing is % of the total

marketing investment



• Marketing approach that reaches people in a very unconventional way – in the streets or some other unexpected places– Often used in Guerrilla Marketing– Hard to measure impact, …..



Non-Traditional Media Event for MSN.com



Some future (or futuristic) Some future (or futuristic) tendenciestendencies

A whole new game



• Google: an efficient and automated way to sell ads that target consumers with what they actually really want to see…it dominates the US 12 BLN USD Advs Internet Market– You only pay for the attention you really get…

and you can measure it…



• Wikipedia, My Space: marketers are there.

And they tread very carefully so as not to mess up with these communities

Trying to build on Buzz Marketing as if it were consumer generated advs.: grassroots viral adoption of a brand / product in a community



• Video Games: great for brand placement. Real ads are accepted: they give a sense of realism– US ARMY– VOLVO– VISA– AXE– Just think: around the globe there are 100 MLN Play Stations2

and 40 MLN XBOX– Who plays? Not only young boys…and 96% of them remember

and like the brands that are present– …furthermore, this unregulated world is great for testing new

ideas…– Do you know SECOND LIFE?



• Online search: 62% of searchers do not go beyond the 1st page, 90% do not go beyond the 2nd page– A good way: make simple organic search

results in the unpaid section…Think very well the words you may use…

– This is how Aubuchon in Nebraska beated SEARS as an hardware store!!! …



• Experiential and Event Marketing: consumers want to feel and touch a product, in an entartaining way

• Works better for food, beverages, PC, cell phones, cars.

• LEGOLAND, MAXIM

• As old as sampling: go where and when people are most open…Neutrogena



• Cell Phone: 4 BLN by 2010. Portable interactivity. 89% of major US brands plan to market via mobile phones by 2008 (Airwide solutions). Why?– Consumers are very willing to trade free air time with

listening to ads (eg. VIRGIN….response rate was 4-10% versus 1% direct marketing)

– New technology will just increase that…Google, Microsoft, Yahoo! are all present on cell phones…



• Blogs: brands are behind them and you do not even notice that!– More than 100 new blogs per minute about everything– 90% fail in a month; only 55% survive more than 3 months– For marketers is a big opportunity: talk to people when they are

really listening and interested– Blog advertising, section in corporate sites…some companies

are looking for dialogue (Fedex, Diageo)– Some other brands pays bloggers to post positive comments

around the blogosphere: be aware of the damage to the brand. They will see you! (Dr. Pepper in 2003)

– How much does it cost advertsing there? AUDI promoted A3 on 286 blogs for 3 months: 50,000 USD. BUDGET RENT-A-CAR.

– Pay attention: anyone can destroy a brand in the blogosphere!!



• Sport Marketing: a whole new game– Golf– Football– Bull Riding (!!!)– ….



• A conclusion:A conclusion:If you want to know about the media in the

future look at what the sex industry is up to today

• TV will remain a mere King, not yet an Emperor: most of it will be on demand

• By 2010 traditional ads will have lost 2/3 of its effectivity compared to 1990 (Mc Kinsey)



• We are moving to the age of RELEVANCE• People don’t hate ads, they hate interruptions• Experiental marketing• Less TV, more online, centrality of corporate Web. It will

reflect the ethnic makeup and cultural mosaic in the US.• More interactive elements• Harder negotiation on TV: the first or the last ads on the

pod. More Brand Placement• Hyperlocalism and personalization• A lot more options: just think, cable, digital radio, tematic

networks, etc.• Blogs & C-…smaller but more valuable audiences



• ENGAGEMENT WILL BE THE KEY WORD, THE KEY TO SUCCESS, THE WAY FOR YOUR BRAND TO SURVIVE AND TO PROSPERATE.

Business

El Futuro De Los Medios Masivos