IAB and Booz Marketing Media Ecosystem

8/6/2019 IAB and Booz Marketing Media Ecosystem

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Booz & Company

This document is confidential and is intended solely forthe use and information of the client to whom it is addressed.

Marketing & Media Ecosystem

2010ANA annual meeting CMO roundtable

October 18, 2008


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Prepared for client name 1Chris Vollmer Booz & Company ANA Oct 2008 CMO Roundtable Presentation.ppt

< eco sys tem >

The Complex of a Community of Organisms and

Its Environment Functioning as an Ecological Unit


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More Choices Than Ever for Marketers

Arms Race for Consumer Insight and Big Ideas

Intensifying Focus on Measurement of Business Impact

Massive Audience Fragmentation

Boundaries Blurring Between Media and Roles

This ecosystem is at an inflection point

Sources: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis

1

2

3

4

5


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-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%

Marketers want more two-way media

% of Respondents

Digital

Mobile

PR

Events

Direct Mail

TV

Print

Out of Home

Radio

Two-Way

One-Way

Increase SpendingDecrease Spending



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90%

82%

62%57%

53%

24%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Expect to Spend

More On Digital

Advertising

Consumer

Insights Will

Become More

Important

Inability to

Measure the

Effectiveness is a

Barrier

Creative,

Strategic and

Media Buying

Capabilities

Should Be

Rebundled

Expect Media

Buying to Look

Like Equities

Marketers Believe

Their

Organizations are

Digital Savvy

Marketer Views on MME 2010

Marketer expectations are changing

%o

fRe

sponses



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Marketers, agencies, media cos expect digitals influence to grow

Key MME 2010 Findings

88% agree the speed of marketing execution will become more important dueto digital

80% believe insights into consumers digital behavior and related targeting willbecome more important

Marketers

85% using digital media to better understand consumers

71% expect digital to reach 25% of media mix by 2010Agencies

73% expect existing advertisers to shift more $$$ online

67% view digital as equal in quality to other mediaMediaCompanies



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Ecosystem = more demanding and complex

Marketers

89%

81%

Developing Ideas thatCross Media Platforms,

Including Digital

Collaborating withMultiple Marketing

Service Providers

Agencies

82%

62%

52%

New

Partnerships

Required to

Access New

Data Sources

Working With

More Agencies

Than Before

Full Services

Agencies Do

Not Offer All the

Services

Marketers

Want

82%

66%

Restructuring AdSales Teams

New PartnershipsRequired Across the

Value Chain

Media Companies



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With more complexity, there is more tension

65% 63%

53%

Working MoreDirectly withMarketers

Agency-servicesCausing Frictionwith Agencies

RethinkingRelationshipswith Agencies

88%

70%

47%

Working w/OtherAgencies IsAwkward,

Competitive

Taking onPublisher

Roles

Marketers LackSufficient Processes

to ManageMultiple Agencies


Agencies Media Companies


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Many concerns relate to managing digital

Key MME 2010 Findings


59% lack sufficient experience with digital/online media

51% do not have adequate senior support for digitalMarketers

73% are challenged to attract enough digital talent

47% view digital as too resource intensive relative to revenuesAgencies

67% need to upgrade their supply chain capabilities

50% view labor spent on integrated campaigns as not commensurate withrevenues

MediaCompanies


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And ownership of value chain roles

Agency of Record Media Company

Media Companies BelieveResponsibility Lies With

12%

32%

76%

33%

Behavioral

Targeting

Consumer

Insight

Research

%o

fR

espondents

52%

61%

2%0%

Behavioral

Targeting

Consumer

Insight

Research

%o

fR

espondents

Agencies BelieveResponsibility Lies With



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Leadership requires a different DNA

Leading marketers are more likely to

Be using two-way media

Have digital embedded in

Dashboards + metrics

Media mix modeling

Have new positions/processes towork with partners


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Know what marketers want tomeasure

Have implemented new metrics

Be automating their processes

Have invested in new offerings

(esp. analytics)

Leading agencies are more likely to


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Be investing to help marketers get it

Sell solutions,

not just ad space

Prove it linking media value tokey metrics

Leading media companies are more likely to


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Marketers

Weak Ability to Measure Effectivenessof Digital (62%)

Metrics are not comparable (44%)

Agencies

Working to Understand marketerneeds in measuring Digital (64%)

Marketers Need to Share Targets/Objectives to Aid Ability to MeasureEffectiveness (59%)

Media Companies

Lack of Metrics Standardization LimitsDigital Ad Spend (98%)

Need to Better Understand WhatMarketers Want to Measure (78%)

More cross-industry effort on metrics


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Other ecosystem 2010 priorities

Integration Collaboration

RestructuringNew

Offerings/Capabilities



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+ +


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Custom agency built bespoke for Dell by WPP

Designed to address Dells demands for creativity, efficiency and proof ofperformance

Big emphasis on analytics and measurement


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OnlineMarketing

DatabaseMarketing

Word of Mouth

Marketing

Custom Healthcare

Marketing

CustomCommunications

Online Marketing


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Closing thoughts

Ideas/creativity still matter a lotneed to be connected to technology, consumer insight andanalytics

Marketing and Media Ecosystem reorienting around:Performance

Relevance

Interactivity

Major go forward needs: simplification, automation, integration and standardization


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Marketing& MediaEcosystem 2010
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IAB and Booz Marketing Media Ecosystem