IMC Media Strategy Implementation

IMC Media Strategy Implementation

Overview

16-2

Integrated Communication Strategy •  Integrated marketing communications (IMC): a strategic

business process that marketers use to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time with targeted audiences.

•  The important thing to understand about this concept is the need for, and benefit of consistency between components of the program.

•  The question: how much should an organization spend on its integrated marketing communications program, and how do you know when it is working?

Advertising Personal Selling

Communication Idea

Direct Marketing Public

Relations Sales

Promotion

Multi media, multi tasking, multi message, multi channels….

tv

magazines

email direct mail

website

cinema

telephone

Signage mp3

newspaper packaging

atm

pda cd/dvd

transit

pop pop ups

webtv

bill posting

iphone

outdoor

events & sponsorship

Communication Mix

IMC Objectives

Brand Situation

Adver&sing Press/print, Television, Radio Internet, Outdoor / transit, Ambient Direct response formats

Direct Direct mail, telephone selling, Catalogue selling

Public Relations

Corporate & Brand PR, Publicity

Sales promotion

Consumer Franchise vs Non-franchise building

Events / sponsorship

Sponsoring (participating, creating) Social, Sporting, Cultural/Arts, Industry Consumer &

Channel TM & Audience Personal

Selling Person-to-person interactive, Lead generation and conversion

Customer Service

Dissonance reduction & feedback

Media & Advertising

= Media Adver&sing

Media: It is an umbrella term. It is defined as the “means by which the various types of MC messages are sent and received” (Duncan, 2005, p. 736).

Adver&sing: “Nonpersonal, paid announcements by an iden&fied sponsor” (Duncan, 2005 p. 730).

For use only with Duncan texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/IrwinBrands

Mail

Newspapers

Magazines

Television Radio

Internet Outdoor

Mail

Internet Out of home

Cinema

Print Newspapers &

Magazines

Radio Television

Telephone

The Media of IMC (planned)

Media

The Role of Media in IMC

Deliver brand messages AND help to create / sustain / strengthen brand rela&onships. It does this by connec&ng companies and customers. Note the difference between delivery and connec&on!! § Delivery means taking something to a person or place. Connec&ng is about joining together.

§ Essen&ally, delivery is the first step towards achieving connec&on. It is a means of touching a customer in a meaningful way.

Mass Media

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

Mass Media

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

Mass vs. Niche Media

Niche Media

Vehicles focusing on a defined group who share a characteristic


The Marketing Communication Matrix

2-way communication An interactive

approach (listening & learning including informal dialogue initiated by planned messages)

With Integrated mix of

planned messages & interactive communication eg F2F,database, viral, WOM

Between Dialogue based on

trust,learning & adaptation with creative outcomes eg communities of interest, internal marketing via work teams

1-way communication Conventional mass

marketing

To Planned persuasive

messages aimed at brand loyalty Eg positioning via

advertising

For Planned persuasive

messages on augmented offerings for targeted markets eg loyalty programs

Mass Market Segmented/Mass Individual Customisation

Ballantyne, Luxton, Powell (2004) Introduction to Marketing: A value exchange approach ed Gabbott, Pearson:381

Relative Degrees of Media Intrusiveness (Fig. 11-3)


Ways to Minimise Media Intrusiveness

Choose target audience that is interested in the product category. Consider using: §  Events §  Sponsorships §  Product placement (movies / TV / computer games) Give prospects or customers the op&on to opt in for receiving brand

informa&on.

Media

• Media aXract audiences • Audiences aXract adver&sers

• Media aXracts Adver&sers’ money

Australian Advertising Breakdown – July 2011

Media Type

July 2010 ($m)

July 2011 ($m)

% Change

% change June - July

Metro FTA Television

240.2 235.8 -1.8 -0.3

Regional FTA Television

49.8 45.8 -7.9 0.4

Radio 39.3 38.9 -1 1.2

Newspapers 116.7 106.3 -8.9 -6.6 Magazines 34.6 31.4 -9.2 -7.0 Digital 58.2 66.1 13.6 20.2 Outdoor 41.6 42.9 3.1 9.8 Cinema 4.2 4.3 2.4 -1.7 Other 2 2 - 7.0 Total 614 603.1 -1.8 1.4

Adver&sers Measuring media audiences

•  The size of the audience determines the price of adver&sing

• Media audiences are therefore measured carefully by surveys –  these survey are paid for mainly by media –  the media therefore influence what is measured, to some extent

Television

•  10,150,000 households with TVs •  99% popula&on penetra&on •  Cable/ Satellite penetra&on is 25.9% •  Digital TV penetra&on .8% •  Number of sta&ons by type: 4 commercial 2 Government and Community 120 Pay TV

•  Ad lengths: 5 to 180 seconds •  Commercial TV have 13 minutes adver&sing per hour

(max) •  People watch approx. 22 hours of TV a week

Measuring media audiences

• Measuring TV audience means measuring behaviour -‐ being in room when TV set is on

• Meters in homes -‐ on each TV in mul&-‐set homes

•  All people in home 5 years and older

TV meter system

Survey to define Population characteristics

Panel homes selected based on Statistical representativeness

Peoplemeter installed on every TV set – records and stores four pieces of information:

time, TV set on/off, channel tuned, persons viewing.

Every night, the data is retrieved automatically

via telephone software.

The output is an audience database - individual by individual, minute-by-minute data delivered overnight, 365 days of the year. Individual data is never identified, except in terms of

demographic profile.

Each morning, users of the data are able to download the complete database

OzTAM (Australian TV Audience Measurement)

•  OzTAM (TV sta&ons 7,9,10 using ATR research company) since 2001

•  Rates based on audience therefore all concerned

•  Media hype (media wri&ng about media)

•  Addi&on of payTV since August 2003

TV audience Survey OzTAM

•  OzTAM (600-‐700) homes per city •  OzTAM 3000 HH (FTA) + 1000HH (PayTV) •  rigorous sampling frame & precise recruitment to survey

(modest incen&ves) •  respondents remain in survey for 2 years •  data released in 15 minute units -‐ used for media

planning (not min by min) •  Check out websites www.oztam.com.au www.acnielsen.com.au

Television characteristics

•  Reach large audiences quickly •  65 percent watch TV within 24 hours (includes ABC and SBS)

•  nearly 90 percent over 7 days •  Targe&ng audiences mainly via demographics

•  TEN targets 18-‐39s, but 18-‐24 always difficult •  9 targets business people (Sunday/Business Sunday, late night News)

•  7 tradi&onally sport •  PayTV good for niches & now in OzTAM survey

Television characteristics

•  Subtle emo&on generated by combina&on of colour, movement, sound

•  Low cost per exposed person, but high absolute costs (TV produc&on + large numbers viewing)

•  Consumers tend to respect TV adver&sers most •  Cross planorm selling eg ninemsn, yahoo7 •  Product placement in programs

Problems with TV

• “High” entry cost • Low selec&vity with high reach • Poten&al waste • Personal (digital) video recorders

Advantages / Limitations of media classes – Television

Advantages •  Builds reach quickly •  Able to target all demographic

groups •  Geographically selec&ve •  Impact through sight sound and

movement •  Intrusive (in the home) •  Call to ac&on with direct response •  Highly researched

Limita&ons •  High produc&on costs •  High capital media costs •  Difficult to obtain specific

programs short term •  Channel surfing •  Not a paid for medium •  High level of ad cluXer •  Can’t measure out of home

viewing for large events •  Programs can be recorded •  TiVO •  Passive

Television characteris&cs

Growth of digital "At end-‐2012, the Asia Pacific region will have 180 million digital homes, a more-‐than five-‐fold increase on the end-‐2006 figure. Pay TV revenues in the region will grow quickly and are forecast to more than double in just eight years to be worth US$42 billion in 2012."

Source: Informa Telecoms & Media

Benefits of Digital TV

Benefits include: §  Superior image §  Improved audio quality §  BeXer recep&on. §  Mul&-‐channelling §  Interac&ve services §  Electronic program guide §  Pay-‐TV and Free to Air (FTA rollout 2001-‐2012)

Planned FTA DTV for Metropolitan markets to begin December 2009. Analogue will cease at this &me.

The concepts of noise …..

•  Non-‐tvc -‐ sta&on IDs, program promo&ons

•  Many marketers think of Ø presence of compe&ng brands in same medium/channel/program

Ø number of commercials in break •  first and last get marginally more recall

•  Seem to rest on manipula&ve model (adver&sing uses people) rather than humanis&c model (people use adver&sing)

Radio

•  261 Commercial Sta&ons •  257 currently opera&ng •  AM – 106 licences, FM – 151 licences (plus some remote) •  Regional – 217, Metro – 39 •  Main Networks: Austereo, ARN, DMG, Southern Cross •  37 million radio sets in Australia •  99% of all cars have a radio •  All homes in Aust have a radio, with 89% having 3 or more •  Australian people listen to 2.3 radio sta&ons •  People listen to over 18 hours per week of radio •  52% of listening occurs at home, 24% in the car, 21% at work,

and 2% other

ACNielsen Radio Surveys

•  Household diary -‐ individuals over 10 years complete personal pages

•  Record only sta&on and quarter hours (if listened for 8+ minutes)

•  4-‐week survey period -‐ people keep diary for two weeks, second sample of people next two weeks

•  10+ &mes yearly in Sydney and Melbourne

Radio characteristics

•  Tightly targeted demographics •  Reach modest by TV standards •  Peaks at breakfast, while TV peaks

6 -‐ 8.30 pm •  People listen for only 45 mins

average at one occasion of listening

•  Podcas&ng showing strong acceptance

Event sponsorships (concerts, festivals, etc.)

On-air promotions (brand giveaways)

Remote broadcasts at the brand’s location

Live brand mentions by DJs

:10, :30 or :60 pre-recorded commercials (“spots”)

On-air promotions (brand giveaways)

Remote broadcasts at the brand’s location

Live brand mentions by DJs

:10, :30, or :60 pre-recorded commercials (“spots”)

5 Ways to Advertise on Radio


Radio advantages

•  Low start-‐up cost (as low as a few $000) •  Sta&ons willing to create campaigns for small adver&sers -‐ provide weak strategy & crea&vity, oren sta&on par&cipa&on

•  Big adver&sers use it for flexibility -‐ eg Qantas for strike update, Streets adver&ses ice cream arer forecast of 29 degrees

•  can use TV audio track to create mental pictures

Radio weaknesses

•  Needs radio-‐thinking crea&ves •  Flee&ng message unless long-‐term campaign

•  Needs mul&ple sta&ons and 24 hours to reach more than 40 percent

•  Formats impact on response (music versus talkback)

Digital Radio

“Digital radio is the new, involving way for listeners to tune into their favourite radio sta&ons. Offering an excep&onally high sound quality, digital radio offers a host of exci&ng features to enhance the listening experience.”

Digital Radio Australia (2008)

Benefits of Digital Radio

Benefits include: §  No hiss or crackle from interference §  Easy to tune §  Listeners don’t need to remember frequencies §  Extra programs at listeners’ finger&ps §  Program informa&on and news headlines §  Pause, rewind and record live radio

Rollout is planned for January 2009 but no switch off for analogue radio is planned.

Can digital radio win against internet radio? What do you think?

Print Media

Newspapers §  broadsheets §  tabloids Magazines §  paid-‐circula&on publica&ons §  controlled-‐circula&on publica&ons Directories

Newspapers

•  397 newspapers in Australia •  2 Na&onal dailies •  10 Metro dailies •  10 Metro Sundays •  132 Regional &tles •  243 Suburban &tles •  Es&mated over $21million spent on na&onal and metro

newspapers in a week

Magazines

•  Total 227.1 million sales of audited magazines •  An average 13.6 magazines per person over 14 per year •  Es&mated 4500 &tles •  Consumers spend $1.03 billion on consumer magazines •  154 have over 100,000 readers which represent 69% of the

market •  Around 90% of magazines are bought at retail outlets

(newsagent, supermarket etc)

Directories (e.g. Yellow Pages)

Print versions: Purchase display space annually and cost is based on size of ad and graphics.

Customers search categories to find businesses offering products/services they are interested in or desire (note 2nd or 3rd stage of AIDA model).

Weakness Constructed yearly so informa&on can become outdated. Emergence of electronic directories Overcome barrier to upda&ng informa&on and enable ads to contain

more detailed informa&on.

Print Measurements

•  Circula&on -‐ numbers of copies in the hands of the public (sold or given away) audited by Audit Bureau of Circula&ons

•  Readership -‐ the number of people who “read or looked into” each “specific issue” (in Australia, by Roy Morgan)

(average readership over specific period in US promoted by ACNielsen in Australia)

•  Online + circula&on promoted by industry body The Newspaper Works

Readership is independent of circulation

§  Readership growth and decline can occur independently of circula&on growth

§  Example of where circula&on can increase and readership remains stable: Newspaper compe&&on

§  Example where readership can increase and circula&on remains stable: Supermarket check out

Rela&on between Circula&on and Readership

• Wide varia&on in readers-‐per-‐copy – Women’s Weekly/New Idea about 2 – Vogue about 6 –  Penthouse about 1 –  Car Australia about 7 – Daily Newspapers about 1.5

Roy Morgan Print Readership

•  Face to face interview (50 minutes), 1200 weekly, na&onal -‐ aggregates to 60,000 people annually -‐ age 14 years +

•  Results issued half-‐yearly •  Covers magazines, newspapers, many demographics, values segments, a few product categories -‐ eg. cars, vo&ng inten&ons

Newspaper characteristics

•  Moderately high reach, though declining slowly

•  Circula&ons 535,000 Herald Sun Sat 513,000 Sun 615,000

207,000 Age Sat 301,000 133,000 Australian Sat 300,000 MX to boost in young demographic (90,000)

Source: Audit Bureau of Circula&ons •  But remember Readership •  And include online

Newspaper advantages

• Moderate costs -‐ full page in $10s of thousands

•  Short lead-‐&me possible for Mono ads •  Colour now •  Reader works at own pace -‐ can refer back •  Can carry inserts -‐ catalogues, coupons, etc

Problems with newspapers

•  Short life compared with magazines •  Small spaces compete with many others for aXen&on -‐ usually requires regular appearance, eg travel groups in travel sec&on

•  Reader decides whether to peruse page/ad at all

Magazines

•  Total 227.1 million sales of audited magazines •  An average 13.6 magazines per person over 14 per year •  Es&mated 4500 &tles •  Consumers spend $1.03 billion on consumer magazines •  154 have over 100,000 readers which represent 69% of the market

•  Around 90% of magazines are bought at retail outlets (newsagent, supermarket etc)

Paid-circulation • Readers pay to receive it

• Most revenue comes from ads

Controlled –circulation • Readers get it free

• All revenue comes from ads

Paid-circulation • Readers pay to receive it

• Most revenue comes from ads

Print Media: Magazines

2 Basic types


Magazine characteristics

•  High segmenta&on poten&al •  High quality reproduc&on -‐ high quality photography delivers eg. appe&te-‐appeal, emo&onal s&mula&on

•  Held at home for long periods -‐ catalogue value

•  Reader approaches in leisure or business-‐like frame of mind -‐ aXen&on concentrated?

Magazine problems

•  Long lead-‐&mes -‐ oren 6 to 12 weeks •  May be inflexible -‐ but may take inserts •  Declining circula&ons for many individual &tles

Women’s Weekly 605,000 Woman’s Day 481,000 New Idea 391,000 TV Week 262,000 That’s Life 329,000 Take 5 260,000 Cosmo 203,000 Cleo 170,000 Good Taste 166,000 Dolly 131,000 NW 176,000 Source: ABC June 2007

Advantages / Limitations of media classes - Magazines

Advantages •  Na&onal coverage with one

inser&on •  Provides details •  Target group specific •  High use by women •  Most are paid for •  Higher level of involvement •  Editorial comparability •  Crea&ve opportuni&es ie.

Gatefolds, pop ups •  Highly researched •  Longevity of adver&sing •  High quality produc&on •  Quality image associa&on

Limitations •  Longer lead time for monthly

magazines •  More difficult to book by region •  Higher level of clutter •  Slow to build reach •  Passive •  Lack urgency

Digital Media

•  Ac&ve penetra&on growing every year (7% in 2004 alone)

•  Ac&ve internet popula&on is over 33% of all Australians •  Average page dura&on 52 seconds •  Average 18 + minutes spent online per day •  35% of all users using the internet daily •  75% of all home users have access to broadband •  Online penetra&on: 50% home 20 % work 30% other

Digital

Global, Na&onal, or postcode levels Types of Sites •  Portals •  Search Engines •  Content Sites •  Shared Content Sites •  Direct E-‐mail •  Blogs •  Chatrooms

Placement •  Homepages •  Sponsorships •  Targeted buys

(demographic, need registration) •  Run of site (random) •  Run of network (random

across network, i.e. Fairfax online newspapers)

•  Buyouts (all available for a specific period)

•  Email list rental

AU Industry Rank of 165+

Industries Industry

AU Market Share %

US Market Share %

UK Market Share %

3 Search Engines 10.80 8.65 10.91

6 Social Networking & Forums 8.00 9.18 7.69

7 News & Media* 6.75 3.97 4.63

8 Shopping & Classifieds* 5.93 9.54 9.61

9 Email Services 4.96 8.05 4.80

10 Portal Frontpages 4.66 5.61 n/a

11 Banks & Financial Institutions 4.35 3.59 2.35

14 Software 3.86 1.57 3.27

15 Education - Reference 2.63 1.62 1.61

16 Travel* 2.56 2.01 3.62

17 Government* 2.56 1.52 0.87

18 Games 2.45 2.46 2.45

19 Sports* 2.42 1.79 2.45

*The table shows statistics for industries amongst the top 20 Hitwise industries and sub-categories (of 165+ industries). Major industries are listed in bold and represent aggregated traffic from all relevant sub-categories. Some industries within the top 20 have been excluded for illustrative purposes.

**AU Market Share % highlighted in green represent where share is higher than US and UK markets

Source: Hitwise

What are Australians doing online Industry Traffic Overview -‐ All Categories Share at Week Ending 9 February, 2008

Australia: Top 10 Parent Companies Month of February 2007 Home/Work Panel

Property Name

Unique Audience

(000) Reach %

Time Per

Person Microsoft 9,410 82.02 02:24:13 Google 8,932 77.85 00:50:59 Telstra 5,118 44.61 00:25:14 News Corp. Online 5,051 44.03 00:56:17 Yahoo! 5,020 43.75 01:03:36 eBay 4,957 43.21 02:11:53 Australian Federal Government 4,128 35.98 00:33:05 Fairfax Digital Australia and New Zealand

3,543 30.89 00:30:05 Apple Computer 3,096 26.99 00:50:01 Wikimedia Foundation 2,821 24.59 00:17:20

Internet/ Online

http://www.netratings.com/

Advantages / Limita&ons of media classes – Digital

Advantages •  Ac&ve medium – requires

audience par&cipa&on •  Low Cost Corporate legi&macy •  Supplemental Informa&on •  Ability to measure effec&veness •  Low Cost marke&ng research tool •  Shared content/ content crea&on •  Mul& sensory environment •  Youth oriented •  Customisable •  Ac&ve communica&on (2 way) •  Strong word of mouth

Limitations •  High Cost (requires conventional

advertising campaign to promote website)

•  Conflict between internet sales and traditional sales channels (ensure no undercutting)

•  Limited penetration •  Extreme Clutter •  Highly fragmented •  Reputation and credibility •  Low threshold for unintelligent

communication •  Strong word of mouth

Email

§  Email Adver&sing §  Viral Marke&ng §  Loyalty Programs §  Spam (ADMA – opt in/opt out) §  Instant Messaging

What are examples for each of these?

Other Mass Media

•  Cinema •  Ambient •  Alterna&ve Media

Cinema

Val Morgan manages 97% of all adver&sing for cinema complexes across Australia.

Moonlight Cinema manage 3% > more specific targe&ng Slide or Film, 15 – 120 seconds Cinema suited to full length ads and secondary placement in foyers, bathrooms, &ckets etc.

Rates are based on total number of screens, lengths, and package type (by loca&on, film, target)

All ac&vity runs Thursday to Thursday (as all movies are released this day)

Out Door Adver&sing

Key formats: •  posters •  street furniture •  sport stadiums •  transport •  Ambient media

Source: Outdoor Media Associa&on

Advantages / Limita&ons of media classes – Out Door

Advantages •  Wide coverage of local markets

(ability to build large ‘exposure’ reach over 30 day period)

•  High Frequency •  Large Print size •  Geographic flexibility •  High summer visibility •  Around the clock exposure •  Simple copy themes / package

iden&fica&on •  Cost effec&ve over a long period •  Target light users of other

mediums

Limitations •  Simple creative •  No guarantee of high recall •  Limited availabilities of best

locations •  High production costs •  Sensitive to location •  High wear out if not changed •  Long lead booking time •  Best sites often booked out

months ahead •  Difficult in regional areas •  Difficult to target specific groups

Ambient Advertising

Overview

Background

•  The term ‘ambient advertising’ was first applied during the early nineties when clients began demanding ‘something a bit different’ in their advertising.

Definition

•  The placement of unique advertising in unusual and unexpected places often using unconventional methods to communicate to target markets.

Reasons for growth in ambient advertising

•  Saturation of traditional media •  Increasing demand for point-of-sale

communications. •  Allows for precise audience targeting. •  It is flexibility and versatility. •  Eye catching •  Impactful

Examples

•  Messages on the handles of supermarket trolleys or yacht sails. It allows projection of huge images on the sides of buildings, out door places or messages on hot air balloons.

•  See examples on next slides

Ambient - Liberty Financial House

Source: http://www.picturethis.com.au/page.asp?cid=81

Example Ambient Balloon Advertising Sydney, Australia

Ambient - Poster

Ambient – Toilet Care

Ambient - Gillette

Ambient – Earth Day

Alternative Media §  Brand Funded Entertainment §  Mobile Communica&on §  Video Games §  Hypertags/ Mobile Barcodes

What are examples for each of these?

Inter & Intra-‐media decisions Research Tools TV OzTam www.oztam.com.au Asteroid has limited capabili&es Radio Neilson Media www.nielsenmedia.com.au Cinema Mo&on Pictures Distributors Associa&on of Australia www.mpdaa.org.au

Industry Association TV Free Television Australia www.freetvaust.com.au Regional TV Marketing www.regionalTVmarketing.com.au Radio Commercial Radio Australia www.commercialradio.com.au TV & Radio Australian Subscription TV and Radio Association www.astra.org.au Digital Broadcasting Australia www.dba.org.au Cinema Motion Pictures Distributors Association of Australia www.mpdaa.org.au

Research Tools Press (Magazines and Newspapers) Roy Morgan www.roymorgan.com.au Internet Nielsen/NetRa&ngs www.nielsen-‐netra&ngs.com Hitwise www.hitwise.com.au Outdoor Research tool is in development

Inter & Intra-media decisions

Industry Associations Press (Magazines and Newspapers) Magazine Publishers of Australia

www.magazines.org.au Internet Australian Interactive Media Industry

Association www.aimia.com.au Outdoor Outdoor Media Association www.oma.org.au

Research Tools Internet Nielsen/NetRa&ngs www.nielsen-‐netra&ngs.com Hitwise www.hitwise.com.au Outdoor Research tool is in development

Intra-media decisions

Industry Associations Internet Australian Interactive Media Industry

Association www.aimia.com.au Outdoor Outdoor Media Association www.oma.org.au

Summary

•  All messages are carried by some form of media to connect with customers. –  The media add value to messages by increasing their impact on a{tudes

and behaviors

•  Companies connect with target audiences through tradi&onal & nontradi&onal media (internet, ambient)

•  In IMC, the role of the media is to help create, sustain and strengthen brand rela&onships by connec&ng companies and customers, in addi&on to just delivering messages

You are welcome to contact Nigel Bairstow at B2B Whiteboard your source of B2B Asia / Pacific marketing advice http://www.linkedin.com/pub/nigel-bairstow/6/41b/726

http://twitter.com/#!/b2bwhiteboard