Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Out-of-Home Media Now and Tomorrow
Christof Baron
Berlin, June 20, 2013
Agenda
1/ Out-of-Home media – todays perception and planning
practises
2/ Our market - key trends
3/ How we change our business
4/ What we expect from OoH vendors
FEPE Conference 2013 2
Out-of-Home Media Todays main perception…
FEPE Conference 2013 3
Out-of-Home Media Todays main perception…is changing
FEPE Conference 2013 4
High quality positioning + Video + Interaction
FEPE Conference 2013 5
Some fundamental issues
Business is driven by specialists - limited
information about all potential OoH options
Choice of different options within OoH
often more a result of personal preferences
than of detailed knowledge
Decisions in OoH media are often based on
pure tactical decisions, not on the basis of
a strategic framework
Lack of knowledge / data regarding
optimal performance levels
interaction with other channels
RoI contribution
WHEN YOU ASK MEDIA PLANNERS ABOUT OOH
?
FEPE Conference 2013 6
Some fundamental issues
Black box in the process between
planning and implementation / buying
Very limited flexibility – if a campaign is
booked the money is locked
Delivery of performance / controlling
not sufficient
WHEN YOU ASK MEDIA PLANNERS ABOUT OOH
Our market – key trends
Fundamental change of our industry
The advertising industry is still
on the way of fundamental
transformation – and the speed
of change will not decrease.
The digitalization of our industry
has just started!
FEPE Conference 2013 8
Transformation
The transformation has an
impact on everything and
everyone in our industry –
clients, ad agencies, media
agencies, vendors, tech
companies, talents, the value
chain …
FEPE Conference 2013 9
Data
Automation and speed become
critical success factors.
“Big data” creates a new
dimension in the way how
consumers can be addressed in
the future - faster, targeted and
context-neutral.
FEPE Conference 2013 10
Engagement economy
Consumers change their
expectation towards marketers –
and they talk actively about
experiences and perceptions of
products and services.
FEPE Conference 2013 11
Brand experience
In a more fragmented world,
brands need a strong and
distinctive identity towards
customers in their social
environment.
Creativity is key for a successful
break-through communication.
FEPE Conference 2013 12
No limits
The increasing mobility is a
global megatrend – more people
are travelling more frequently.
Mobile communication devices
offers the modern society
unlimited access to all type of
content, media, friends, brands -
and to a “glocal” shopping mall.
FEPE Conference 2013 13
2011
The triumph of screen media
1920 1940
1925
FERNSEH-
TECHNIK
1950 1960 1970 1980 1990 2000 2010
1923
FIRST
PUBLICH
RADIO
STATION
1930
SOUND FILM 1924
1947
TRANSISTOR-
RADIO
PUBLIC
TELEVISION 1952
1969
VIDEO-
RECORDER
VIDEO
-GAMES 1972
1979
WALKMAN
COMPACT
DISC 1982
1989
WORLD
WIDE
WEB
SMS
QR 1994
1998
1996
FLASH
TECHNOLOGY
1997
AOL
INSTANT
MESSENGER
MOBILE
ADVERTISING 2000
MYSPACE
LINKED IN 2003
2004
HIGH
SPEED
BROADBAND
INTERNET
2005
2006
2007
IPHONE
2010
IPAD
2012
2011
APPLE TV Connected and addressable
Advertising investments
The marketing budgets for
traditional campaigns are
stagnating – or decreasing,
while investments in digital
media - including owned media -
are further growing.
IP based delivery of commercial
communication on screen and
connected media is the winner
within this unfair competition.
Traditional media are in a crisis
FEPE Conference 2013 15
0
100
200
300
400
500
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Ad Spendings Net as Index: 2002 = 100
Online Media
Measurement
Traditional media KPIs will lose
dominance – much harder,
performance driven measures
get a greater relevance
FEPE Conference 2013 16
How we change our business
The Adaptive Model
From: Binary Approach to Media To: Connected Approach to Media
Brand or demand campaigns Leading consumers from brand to purchase to advocacy
Campaign KPI’s Establish KPI’s for each channel across all media
Planning paid in isolation from owned and earned Maximizing earned by planning it with paid and owned
Offline channels, online channels Planning for a multi-screen experience
FEPE Conference 2013 18
PLAN
A change of the traditional planning concept
The Adaptive Model
FEPE Conference 2013 19
From: A Passive Consumer Purchase
Funnel
To: Dynamic Consumer Journeys
Targeting a consumer
Contextual media plans
Buying media sites
Advertisements
Distributing ads
Targeting niche audience segments
Behavioural targeting rules
Buying audiences
A library of advertising assets
Dynamically assembling advertising assets
A change of the traditional planning concept
The Adaptive Model A change of the traditional planning concept
FEPE Conference 2013 20
From: A Monthly Report To: Real-time Optimization and
Experimentation
One-off A\B tests
Post-campaign analysis
Last-click wins
Continuous, comprehensive testing program
Always-on optimization of performance
Fair credit based on attribution modeling
BUDGET PLAN BUY OPTIMIZE DEVELOP
ADAPTIVE
MEDIA
RULES
Plan
Buy
Buy Optimise
Plan Optimise Buy
Optimise Plan
What we expect from OoH vendors
The new world order Recap
FEPE Conference 2013 22
Adaptive + Data Connected Addressable Screens Mobile
Measurement + KPIs
The good message OoH is on the way to successfully re-invent the business…
FEPE Conference 2013 23
BUT IS THAT TRANSFORMATION ENOUGH?
„printed“ to digital static surface to video passive to interactive
and connected
single message to
flexible messaging
FEPE Conference 2013 24
What OoH vendors / specialist companies need to do
ADAPTIVE
better targeting
higher flexibility
point of interactive should be seriously taken – more efforts to create interactive solutions
strong expansion of “digital on the road”
EFFECTIVENESS
better proof of advertising effectiveness, especially in the mix with other media
improved data for campaign evaluation required, and much quicker
proof of interaction with other media
“hard” KPIs
EXPECTATIONS OF MEDIA PLANNERS
FEPE Conference 2013 25
What OoH vendors / specialist companies need to do
PRICING
higher transparency needed
realistic pricing – premium pricing
is ok for high quality sites, but it
should be a clear rational behind
pricing strategies
Still, affordable pricing required
for “bread-and-butter-campaigns”
becomes critical, if effectiveness
data are not sufficient
EXPECTATIONS OF MEDIA PLANNERS
FEPE Conference 2013 26
booking / cancellation deadlines
to be optimized (CLP/CLB)
greater flexibility in the way of
planning / buying poster networks
improved evaluation data
higher transparency, better
documentation of activities
BUT STILL SOME BASICS TO BE DONE
“While agencies, planners and
clients have “emotional” relationships
to some media channels because of
personal experiences, it is hard “to love” a
special site.” - A media planner
FEPE Conference 2013 27
The emotional challenge
Thank you!