“Everything is media, and media is everything”

Latest Trends in Media

THE JOINED UP MEDIA COMPANY 1

IN THE WORDS OF DAVID BECKHAM…..

I don’t make predictions, and I never will

THE JOINED UP MEDIA COMPANY 2

 THE PHILOSOPHY

Everything is media……

¾ How technology, lifestyle and measurement changes

are causing us to re-evaluate our definition of what is
a media contact

And media is everything

¾ How existing and emerging media planning concepts

drive consumer behaviour

THE JOINED UP MEDIA COMPANY 3

 WHAT IS THE EVIDENCE OF THE GROWTH IN
“EVERYTHING IS MEDIA?”

¾ Winners of IPA Effectiveness awards use an average

of four different media

¾ As markets evolve, the dominance of TV reduces

THE JOINED UP MEDIA COMPANY 4

WHAT IS THE EVIDENCE OF ITS GROWTH IN IMPORTANCE?
DISTRIBUTION OF ADVERTISING EXPENDITURE

I nt er net
Out door I nt er net
Ci nema Out door
Radi o 5% 2% Ci nema 3%
1% 6%
4% Radi
1%o
4%

Newspaper s
Newspaper s 41%
43%
TV
26%

TV
30%

Magaz i nes Magaz i nes

19% 15%

Germany United Kingdom

I nt er net
0%
Out door Out door
Ci nema
Ci nema I nt er net Newspaper s
Radi o Radi o
1%
6%
0% 1% 5% 12%
5% 7%
Newspaper s
32%
Magaz i nes
14%

Magaz i nes
4%
TV
52%
TV
61%

Turkey Poland

THE JOINED UP MEDIA COMPANY Source: Carat 2003 5

 0
10
20
30
40
50
60
70
80
90
Romania
Ukraine
FYR Macedonia
Serbia &
Slovak Republic
Croatia
Bulgaria
Poland
Slovenia
Classic model

Portugal
Italy
Turkey
Czech Republic
Russia
Spain
Hungary
Greece

THE JOINED UP MEDIA COMPANY

Belgium
France
United Kingdom
Norway
Germany
% ADVERTISING BUDGET SPENT ON TV

Austria
Netherlands
Sweden
Denmark
Finland
WHAT IS THE EVIDENCE OF ITS GROWTH IN IMPORTANCE?

Diversification model

Source: Carat 2003

6
 WHY HAS THIS HAPPENED?

¾ TV Media Inflation

¾ Saturated consumers

¾ Busy consumers

¾ Media fragmentation

¾ Better measurement

¾ More specialists

THE JOINED UP MEDIA COMPANY 7

 HOW HAVE ADVERTISERS AND AGENCIES RESPONDED?

¾ Diversification and creativity

¾ Rethinking consumer planning around an organising

idea

¾ Using new measurement techniques

THE JOINED UP MEDIA COMPANY 8

 DIVERSION & CREATIVITY IN SLOVAKIA:
CATEGORY BREAKER MEDIA:HVB CREDIT

HVB Bank in Slovakia had a particular

challenge
¾ To stimulate take up of credit the bank
wanted to stress the benefits of buying
products even when you don’t have the
money at present.
¾ A sensitive message so a mass TV
campaign was out.
¾ So the media solution was to put the TV
ad in an environment where shopping
aspirations would be top of mind
¾ The “media” was TVs in a retailer window,
NAY (electronics retailer with 20% share)
¾ Three times uplift in credit applications

THE JOINED UP MEDIA COMPANY 9

 DIVERSION & CREATIVITY IN CROATIA:
LEVERAGE TV CAMPAIGN

¾ Print Advertisment
• In support to Duracell
Racing Bunny tvc
advertisement invites
consumers to join
Duracell bunny in his
tour around Croatia,
have fun, learn about
children with special
needs and take a
photo – which was
agreed with Olympus

• Headline Copy: Go
with the bunny and
prepare for the foto
shoot!

THE JOINED UP MEDIA COMPANY 10

 HOW HAVE ADVERTISERS AND AGENCIES RESPONDED?

¾ Diversification and creativity

¾ Rethinking consumer planning around an

organising idea

¾ Using new measurement techniques

THE JOINED UP MEDIA COMPANY 11

 RETHINKING COMMUNICATIONS PLANNING:
THE SIX STEPS

¾ Set up a team and a collaborative process

¾ Define the brand challenge
¾ Get consumer insight
¾ Develop an organising idea
¾ Execute the idea into relevant channels
¾ Design of evaluation

THE JOINED UP MEDIA COMPANY Source: Julian Saunders 12

 AN ORGANISING IDEA CAN BE….

¾ A Message

¾ A symbolic idea

¾ Brand identity

¾ Campaign theme

THE JOINED UP MEDIA COMPANY 13

WHAT IT MEANS FOR MEDIA/CHANNEL PLANNING

¾ Starts with the consumer, not the media.

¾ Media/channel combinations often required.

¾ Winning consumer attention requires more creativity.

THE JOINED UP MEDIA COMPANY 14

 HOW HAVE ADVERTISERS AND AGENCIES RESPONDED?

¾ Diversification and creativity

¾ Rethinking consumer planning around an organising

idea

¾ Using new measurement techniques

THE JOINED UP MEDIA COMPANY 15

We manage what we
measure!

THE JOINED UP MEDIA COMPANY 16

IF WE MEASURE IN FRAGMENTS, WE MANAGE IN FRAGMENTS

¾ To integrate marketing effectively managers need a tool

that measures the contribution of different
communication touchpoints… ….holistically

Market Contact Audit

(MCA)
THE JOINED UP MEDIA COMPANY 17
 P&G ENDORSEMENT

“An innovative tool that addresses an urgent need of the

industry…it is based on a simple and solid consumer interview,
from which a wealth of data is derived”
Hans Ulrich Krause
(Global Media Research - Procter & Gamble)

THE JOINED UP MEDIA COMPANY 18

 WHAT IS A TOUCHPOINT?

¾ Each and every opportunity (or potential opportunity) for a brand

category and a consumer to encounter
¾ Example of contacts:
• Mass Media exposure:
– TV ads, Magazine ads, Press Articles...
• One-to-One contacts:
– Direct Mail, Coupons...
• POS experience:
– In-store leaflets, gondolas...
• Events and Sponsorship coverage
• Any other contact:
– Word-Of-Mouth...
– Packaging...
– Web-Site or Internet Banners...

THE JOINED UP MEDIA COMPANY 19

 TOUCHPOINTS: TELEPHONY ADVERTISER
•Helpline or call centre •Articles in newspapers and •Promotional voucher or coupon
•E-mail message magazines •Magazines, leaflets, brochures in
•Special offer through my work •TV advertisements shops
•Text message or telephone call from •Advertising on posters or billboards •Recommendation/advice from sales
phone company •Leaflets inserted in magazines or person
•Welcome pack or users' manual newspapers •Shop window displays
•Customer magazine sent to me by my •Newspaper advertisements •Special in-shop display
phone company •Magazine advertisements
•Internet sites •Advertising on buses, trains or taxis
Direct (12)

•Information received with monthly bill •Radio advertisements

Mass (11)
•Offer in conjunction with another •Cinema advertisements
company (eg credit card company) •Information at airport or on airplane
•Advertisements on the internet •Interactive TV commercial (when you
•Sales people in a public place (eg press the red button)
railway station, shopping centre, café
or gym)

POS (5)
•Mail from a phone company
Sponsorship (4)

Unbranded (4)

•Sponsorship of TV programmes •Recommendation/advice from a friend

•Sponsorship of music or arts events or colleague
•Sponsorship of sports events, teams •Prompt from family or friends to join
or sportsmen/sportswomen their network
•Sponsorship of radio programmes •Recommendation/advice from my
spouse or partner
•Recommendation/advice from my kids

THE JOINED UP MEDIA COMPANY 20

 TOUCHPOINTS: COFFEE ADVERTISER
•TV advertising •Free cup of coffee at store •Price reductions in mailed
brand-promotion-stand
•Price reductions in newspaper leaflets
•Free coffee sample handed at
ads work •Product tasting at work
Generated by MCAutomated©. Integration® is trademark and copy-right owner of all MCA© products, tools and service marks

•Cinema advertising •Café (serving coffee cups, •Smaller packages to initiate

pastries and cakes,…) trial of new brand
•Advertising in newspaper,
Mass

•A specialized shop that sells

POC
•Posted flyers without price

1/1
journals and magazines (without coffee and related products
(Special blends, beans,…) and information
price information)
serves cups •Branded automatic espresso
•Billboards •Branded coffee shops machine for home use
•Discounts through radio •Branded coffee machine at
•Recommended by coffee
work
advertising machine vendor
•Branded coffee parasols in
•Radio advertising cafés

•Free sample trial at store when •Sponsoring of sports events •Tried at a friend's house
you buy coffee •Live ads/events sponsored by
•My family used this brand
•Store flyers with promotions
Sponsorship

a coffee brand
(e.g. buy 3 for the price of 2) or •Recommended by a

Indirect
•Brand presence at sports
POS

price reduction/information
events friend/someone who knows your
•Shelf positioning in store
•Sponsoring of TV programs taste
•Packaging that is functional
•Sponsoring of cultural events
•Special gondolas to make
•Brand presence at cultural
coffee promotions more visible
events
•Nice layout in shop window

THE JOINED UP MEDIA COMPANY 21

 MCA MEASURES BRAND EXPERIENCE ...

¾ … by measuring the degree to which consumers

associate brands with contacts:

Contact Brand A Brand B Brand C

TV-Advertising 40% 30% 20%

¾ Reflects the perceived weight of the intensity and

impact of brand activities in a contact

THE JOINED UP MEDIA COMPANY 22

 WHICH BRAND HAS THE MOST EFFECTIVE
MARKETING MIX?

¾ Contact Brand A Brand B Brand C

TV advertising 40% 30% 20%
Press articles 15% 30% 15%
POS Displays 50% 40% 60%
Direct Marketing 10% 20% 50%

Some associations are worth more than others!

We need to weight the brand/contact associations by a factor that
relates to brand choice.

THE JOINED UP MEDIA COMPANY 23

 MCA MEASURES CONTACT VALUES ...
... as if contacts were sales - people:

Effect Cause
Rational - Information value
Emotional - Attractive value
Behavioral - Power value

¾ These 3 contact values are measured:

• Per category
• Per market
• Independent of brands and message content

¾ Robust, validated questionnaire techniques

¾ Proprietary questionnaire
THE JOINED UP MEDIA COMPANY 24
AND MERGES THE THREE CONTACTS VALUES
INTO A SINGLE INDICATOR:

¾ Contact Clout Factor (CCF):

¾ Information, Attractive and Power measured values

• Merged via proprietary algorithm

¾ Single indicator for the capacity of a contact

to influence attitudes

THE JOINED UP MEDIA COMPANY 25

 THIS PROVIDES A HOLISTIC VIEW OF BRAND
EXPERIENCE
¾Contact Associations CCF BEPs BEPs BEPs BEPs
¾ Brand A Brand A Brand B Brand C Category

¾TV-Advertising 40% 70 2800 2100 1400

¾Press articles 15% 50 750 1500 750
¾POS Display 50% 30 1500 1200 1800
¾Dir. Marketing 10% 60 600 1200 3000
¾Etc.
¾Total BEPs 5,650 6,000 6,950 18,600

¾BES 30% 32% 38% 100%

¾CCF = “Contact Clout Factor”:

¾The capacity of a contact to influence attitudes

¾BEP = “Brand Experience Points”:

Level of brand – contact associations weighted by the CCF.

¾BES = “Brand Experience Share”:

Perceived cumulative weight of all brand communication activities relative to competition.
THE JOINED UP MEDIA COMPANY 26
 MEASURES ARE VALIDATED…

¾ Brand Experience Scores delivered by MCA

correlate with market shares at 0.80 on
average.

¾ … In over 500 audits, covering 50 categories,

in 25 markets and 18 languages

THE JOINED UP MEDIA COMPANY 27

 … AND SUPPORTED BY MAJOR MARKETING
SERVICES COMPANIES

¾ Global allies: ¾ Categories

¾ PUBLICIS ¾ Global market leaders in:
• Starcom MediaVest Group, ¾ Grocery/Beauty/Food
ZenithOptimedia
¾ Automotive
¾ OMNICOM ¾ Consumer durables
• OMD, TBWA ¾ Financial services
¾ DENTSU ¾ Telecoms
¾ WPP
• Mediaedge:cia, Mediacom
¾ HAVAS
• MPG
¾ Markets:
¾ Pilots: ¾ All continents
¾ ATKearney ¾ 30 languages
¾ Video Research Japan ¾ Developed & developing markets
(syndicated MCA™)
THE JOINED UP MEDIA COMPANY 28
WHAT KIND OF ISSUES CAN THIS DATA BE USED
TO UNDERSTAND?

¾ Which contacts are critical to influence AND

differentiate my brand?
¾ How much Brand Experience are we achieving, and
how competitive is this?
¾ What are my brands’ strengths and vulnerabilities?
¾ How much return is my brand achieving per dollar
invested?

THE JOINED UP MEDIA COMPANY 29

 CLIENT BRAND: HOUSEHOLD APPLIANCE RATIO
OF BUDGET/BEPS

Budget Period: February 2003 - January 2004

Generated by MCAutomated©. Integration® is trademark and copy-right owner of all MCA© products, tools and service marks

100%
5% 4%

90%
16%
23%
80%

70% 19% 8%

60%

50% 27%

40%

30% 60% 14% 1/1

Indirect
Mass
20%
POC
25% POS
10% Sponsoring

0%
Budget % % of BEP

THE JOINED UP MEDIA COMPANY 30

Sample: Total (628)
OUR SERVICE TO RETHINKING COMMUNICATION
PLANNING

RESEARCH ACTIVATION

THE JOINED UP MEDIA COMPANY 31

 THE PROMISE OF RESEARCH ACTIVATION

¾ Simply, to turn research into insight and action plans

¾ Specifically,we work with research outputs

• To draw conclusions and observations from their research that are

useful in developing marketing communications.

• And help brands to make decisions.

THE JOINED UP MEDIA COMPANY 32

 HOW WE MAKE IT HAPPEN

¾ We get an overview of the research / data sources that

you have
¾ Then we break it up into “briefings” and use these as
inputs to..
¾ A structured series of workshops..
¾ With a multidisciplinary team.

THE JOINED UP MEDIA COMPANY 33

WHAT VALUE DOES RESEARCH ACTIVATION DELIVER?

Better communications strategies and ideas

¾ Strategies for using communications more effectively
and efficiently
¾ Ideas for better communications.
¾ A focussed communications strategy.
Ownership and change
¾ Team ownership of the thinking,the action plan and
the key metrics for measuring it.

THE JOINED UP MEDIA COMPANY 34

 WHAT ARE THE TYPICAL OUTPUTS ?

Agreement on
¾ What the brand should do now
¾ How the brand can optimise its communications in
future
¾ What the brand needs to find out more about
¾ What metrics will be used to evaluate and track
progress

THE JOINED UP MEDIA COMPANY 35

WHEN CAN RESEARCH ACTIVATION BE USEFUL?

¾ When you want to take new research and build team

consensus on its implications
¾ When you think the brand is under-performing
¾ When the brand is facing competitive entry.
¾ When you are in the challenger position needing to
out think bigger spending competitors
¾ When a part of our audience may need a different
approach
¾ When launching a line-extension
¾ As part of annual planning

THE JOINED UP MEDIA COMPANY 36

 GOING BACK TO OUR PHILOSOPHY……

Everything is media……

¾ How technology, lifestyle and measurement are

causing us to re-evaluate our definition of what is a
media contact

And media is everything

¾ How existing and emerging media planning

concepts drive consumer behaviour

THE JOINED UP MEDIA COMPANY 37

THE TRADITIONAL AIDA APPROACH

Awareness

Interest

Desire

Action

THE JOINED UP MEDIA COMPANY 38

IN THE NEW MEDIA ENVIRONMENT A NEW UNIVERSAL
FRAMEWORK FOR PLANNING IS EMERGING

Central Processing
Learning Hierarchy

Dissonance Hierarchy

Low involvement Hierarchy

Peripheral Processing
Nudge

THE JOINED UP MEDIA COMPANY Source: Sue Elms: March 2005

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RESPONSE HIERARCHIES AND THEIR STRATEGIC
CONSIDERATIONS

¾ Central Processing
• Happens in high involvement situations where brands are
considered different
• Role of advertising is significant in the marketing mix
• Consumers engage with advertising… learn rational info
very quickly, sensitive to placement, mood for emotional
connections
¾ Typically advertising dominated communication
which is continuous, medium frequency,with premium
placement and multiple copy

THE JOINED UP MEDIA COMPANY 40

RESPONSE HIERARCHIES AND THEIR STRATEGIC
CONSIDERATIONS

¾ Dissonance
• Happens when there is high involvement, but alternative
brands are not seen as different
• Consumers sometimes experience the brand through means
other than media brand advertising which leads to
reappraisal and a move towards central processing
¾ Typically burst advertising tying in with promotional/
sampling activity

THE JOINED UP MEDIA COMPANY 41

HUNGARY: EXPERIENTIAL MARKETING

THE JOINED UP MEDIA COMPANY 42

RESPONSE HIERARCHIES AND THEIR STRATEGIC
CONSIDERATIONS

¾ Peripheral processing
• Happens in low involvement categories where brands are
not considered different
• Advertising is acting as a weak force..it’s as likely behaviour
precedes attitude as the other way around
¾ Typically campaigns use repetition,consistency and
cues should be used to get consumers to learn
brands by mnemonics rather than advertising

THE JOINED UP MEDIA COMPANY 43

 118 118
ADVERTISED ALL THE TIME, EVERYWHERE, TO REINFORCE NEW DIRECTORY
ASSISTANCE NUMBER. LOTS OF CUES ON WINNING AND GETTING THERE
FAST, NO ATTEMPT TO GET CONSUMERS TO PROCESS AN ARGUMENT

THE JOINED UP MEDIA COMPANY 44

RESPONSE HIERARCHIES AND THEIR STRATEGIC
CONSIDERATIONS

¾ Nudge
• Happens in very low involvement situations where brands are
not considered different
• Role of advertising is secondary to other marketing levers and
its role is to nudge action
• Consumers not motivated to process message so all you have
to is avoid negative connotations
¾ Typically, campaigns concentrate on just “being there”
as cost effectively as possible, driving a cue (but make
sure cue is not an auto pilot to ignore). Cues work best
on brand users. Increasing penetration may require a
non-advertising route

THE JOINED UP MEDIA COMPANY 45

 ANDREX

THE JOINED UP MEDIA COMPANY 46

 IN SUMMARY…..
¾ Advances in technology and growth are allowing
for measurability of total consumer connectiveness
¾ Measurement and accountability will unlock the potential of
this most motivating of marketing philosophies
¾ It will create challenges for advertisers in terms of how they
organise, approve and set budgets
¾ It will create challenges for agencies as functional specialism
will have to be combined with a multi-functional perspective.
This affects resourcing, organisational models and reward
mechanisms

THE JOINED UP MEDIA COMPANY 47