Mp+ +b +chapter+3-2

Media Planning & Buying in the 21st Century

CHAPTER 3

The Revolution


I N T E G R AT E D M A R K E T I N G C O M M U N I C AT I O N SA C C O U N TA B I L I T Y

C O N S U M E R C O N T R O LE X P L O S I O N O F M E D I A O P T I O N S

C H A N G I N G FA C E O F A M E R I C AG L O B A L I Z AT I O N

R I S E & FA L L O F K E Y M E D I AT H E N E W M E D I A P L A N N I N G

Agenda


Leo Burnett on IMC in 1950

“When you are planning an advertising campaign, the people involved in planning must be able to mentally integrate, in the thought and structure of the advertising itself, the things that should take place in the store, at the service station, in the showroom, at the ticket window, or when the salesman calls.”

--Leo Burnett in a 1950 speech to the ANA


1. The IMC Revolution


What is IMC?

“…a planning process designed to assure that all brand contacts received by a consumer or prospect for a product, service, or organization are relevant to that person and consistent over time.”


The Client View

The #1 concern of the Association of National Advertisers (ANA) has been the inability of its internal & external partners (e.g., agencies) to deliver effective integrated marketing solutions to client marketing and communications problems.


Tools of IMC

Goal is to use whatever marketing communications tools will best and most cost effectively address marketing problems or opportunities

IMC tools include: Advertising Direct Marketing Consumer & Trade Promotion Online advertising & Promotion Publicity Event Marketing Product Placement Custom Publishing And more


Tools of IMC

Goal is to use whatever marketing communications tools will best and most cost effectively address marketing problems or opportunities

IMC tools include: Advertising Direct Marketing Consumer & Trade Promotion Online advertising & Promotion Publicity Event Marketing Product Placement Custom Publishing And more


Barriers to IMC

Clients Internal fiefdoms and budget power Bid out agency’s ideas to suppliers Lack of IMC education

Agencies Client politics Lack of expertise in many marketing communications

areas Financial realities of making/losing money on IMC


IMC: Do or Die

Clients Must stop shooting themselves in their IMC feet by

rewarding internal marketing groups for pursuing programs which are not on strategy

Stop disincentivising their agency

Agencies Some agencies have had difficulty delivering IMC

programs Agencies must learn how to profitably deliver IMC

solutions Failure to do so will put business at risk


2. Accountability & ROI


Accountability & ROI

Historically, There has been little accountability for results and ROI based on most forms of marketing communication, except for those which are quantifiable by nature (e.g., direct mail) Many variables affect sales results Brand managers prefer predictable results of trade

promotion Is a sales increase due to increased awareness or to in-store

promotional activities?

ANA is renewing its call for better metrics to measure ROI


3. Consumer Control

TimeConstrained

Enabled

Relevance

Power


4. Revolution in Media Options

ProliferationFragmentationDeclining Effectiveness of TelevisionNewspapers in FreefallConvergenceAddressable MediaInteractive Media


Proliferation of Media


Fragmentation

Audience Fragmentation


Convergence

Convergence is the merger of two or more media to create a new medium Internet + Television = Internet TV Internet + Newspapers = Online Newspaper Internet + Magazines = Online Magazines Movies + Games = New Games Messaging on cell phones


Addressable Media

A Super Targeting Methodology In early-mid stages of development Utilizes set top boxes in cable TV homes Substantial information collected on subscribers Could be used to precisely target audiences for

commercials Pick up truck commercial goes to truck owners Corvette commercial goes to sports car enthusiasts

Google a prime developer with Echo Star Cable Cable industry’s Project Canoe


Interactive Media

Traditional Interactive Media Techniques 800 numbers Reader service cards URLs in ads

Digital Interactive Media Websites Internet/search Social Media Mobile

Interactive Television (iTV) Has been available for years on a limited # of cable systems May be getting closer to a real debut 75% surveyed execs think iTV would be an effective source

of lead generation and could become a large industry


5. Changing Face of America

New Target Markets?


U.S. Demographic Trends

1990(Millions)

2010(Millions) % Change

African Americans

30 40 33.3

Asians 7 23 228.6

Boomers(Based on 55+)

52 78 50.0

HispanicOrigin

22 48 118.1


6. Globalization

The New Media Planning:

Integrated Marketing Communications

Media Planning & Buying

TraditionalMedia

ExperientialMarketing

New/DigitalMedia

SalesPromotion

PublicRelations

DirectMarketing


The New Media Planning

Now FutureTelevision 44% 15%

Radio 10 3

Print 33 25

Outdoor 4 3

Search 9 22

Interactive -- 30

Mobile <1 2

% of Spending

Source: Kellogg on Advertising and Media & Thumbnail Media Planner

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