Media Choice

Media Choice
Dan Hagen, Kieron Matthews

and Rob Mason
Media Choice
Dan Hagen, Kieron Matthews and Rob Mason
Traditional Media
Dan Hagen
Head of Strategy
MPG
2
What is traditional media?
Sponsorship Brand Direct
Print Radio Gaming

Mobile
Cinema TV Outdoor Affiliate

Search
On Pack Promotion Display

3
The screen versions of these slides have full details of copyright and acknow ledgements
Media Choice
and Rob Mason
4 key drivers of media change
Digitalisation Culture of free
Rece ssion Engaged consumer
The rules of media planning

are changing
Reach an d fr equ ency are still impo rtant
But eng ag ement, int er act ion , sales and ROI

ar e th e end go al
And th e chang es and choices ar e exploding
Originally it was easier
TV Print Radio Outdoor Cinema
Impact Audience Frequency Proximity Captive
Media Choice
and Rob Mason
Now, however, these channels
have much more to offer
Print Radio Cinema TV Outdoor
Digitalisation
This evolution is driving consumer

behaviour and expectation
Consumer control Community
Communication
Context
benefits
Smart brands are connecting

in multiple ways
Find a running
Create
Context
their own Community
buddy
Flexible
Communication
Makes you a better
Consumer
and desirable
control
benefits
runner
touch points
Media Choice
and Rob Mason
We need to understand
consumers better
Dat ab ase
Psych ogr ap hics
segm entation
W here W hat, wh y, ho w
10
What we know broadly about

consumer consumption
High est co mm er cial viewin g in year s,
lo west p ricing
TV
Shr in kin g circulatio ns, p ag e r ates

being m aint ained
Print
Com m er cial list en er sh ip high , sh ift in d evices
Radio
Contin ued incr ease in t im e sp ent OOH ,

mor e opp ortun ities to en gage
Outdoor
Adm ission are on th e up
Cinema 11
So what are the benefits of each

media channel in this new landscape
Radio Cinema TV
Print Outdoor
12
Media Choice
and Rob Mason
TV
Curr ently v er y
Must see T V
efficient
Still p rovid es Place and tim e

high imp act shift ing
Tradin g Fully dig ital

opport unities b y 2012
13
Print
Author it y
Shr in kag e
and gr avit as
Sp ecific
Multip latfo rm
aud ien ce
Reg ion al
Microp aym ent s
opport unities
14
Radio
Digit al ro llo ut Onlin e p layer s

gainin g ch ang ing
mo mentum the land scape
Tradin g Flexibilit y and

opport unities per so n alit y
15
Media Choice
and Rob Mason
Out of home
Techn olo g y Bro ad cast
Interaction
Pro xim it y
throug h mobile
Tradin g Incr easing

opport unities flexib ilit y
16
Cinema
Capt ive
Digit al ro llo ut
aud ien ce
Beyon d Sh ar ed
the sp ot exp erien ce
Good for youth

targ eting
17
Summary
Tradition al m edia is n o long er tr adit ion al
Digit al advances an d lear ning fro m th e Int ern et

ar e driving m an y of th e ch ang es
Con sum ers ar e d em anding v alue fro m adv ertising
Reach an d fr equ ency st ill r elevant measu res,

but eng ag ement and action mo re impo rtant
18
Media Choice
and Rob Mason
19
Online Pic’ n’ Mix
Kieron Matthews
Marketing Director
20
What I’d like to cover
1. Overview of the market

2. Some trends
21
Media Choice
and Rob Mason
1. Overview of the market
22
Market has changed dramatically
2008 2009
• Optimism • Nervou sness
• Confidence • Cut backs
• Integrated • Re-evaluation
• Collaborative • Accountability
• Investment • Media vs. media
• Growth • Caution
• Innovation • Regression
23
Record cuts predicted in Q3 08
24
Media Choice
and Rob Mason
Marketing budgets to hit new low in Q4 08
25
Disappeared from the High Street
26
Shoppers find convenience and value online
27
Media Choice
and Rob Mason
In uncertain times…
…when budgets are being slashed
…Marketing has to be accountable
This is the first recession

since the internet has become
a mass medium…
28
Number of internet users in the UK

34. 68m 1 5.3m
32.3m
12.0m
71% 44%
UK Online
66% Pop 37%
UK Pop
Online
Pop Pop
Jul-Dec 2007 Jul-Dec 2008 Jul-Dec 20 07 Jul-Dec 2008

Number of people online Internet users going online
more than once a da y
Source: NRS UKOM: Jul-D ec 200 8; Jul-Dec 2 007

29
2 thirds of broadband services are now

above 2 MB
12% 26% 62%
14% 32% 54%
34% 38% 28%
4 8% of h om e bro ad ba nd us e rs h av e u s ed wi re l es s
bro adb an d at ho m e in th e l a st m onth ( Nov 2 00 8)
Base: All who know speed of broadband connection at home.

Source: BMRB Internet Mon itor Nov 20 06; Q: Do you know the connection speed of your home
Nov 200 7; Nov 200 8 broadband package? (Nov 06; Nov 07; Nov 08)
30
Media Choice
and Rob Mason
2008 adspend figure
£3,349.7m
market in 2008
An increase of £537.1m year-on-year
Source: Pricew aterho use Coo pers / Internet Advertisin g Burea u / WARC
31
2008 vs. 2007
17.1% increase
on a like for like basis
Ne w contributions in 2008 represented £88.3m
Source: Pricew aterho use Coo pers / Internet Advertisin g Burea u / WARC
32
2008 market share - 19.2% (15.5% in 2007)

% share of revenues for January to December 2008
Total
adv ertising
market
£17.5bn
IAB estimate s for actual ad spend by format are based on samples of categorised revenue
from key IAB m ember s provided by PwC. Data excludes unclassified figures.
Source: Pricew aterho use Coo pers / Internet Advertisin g Burea u / WARC 33
Media Choice
and Rob Mason
Online only medium showing growth in 2008
Year on year growth for 2008
Total adverti sing mar ket

growth = - 3.5%
Source: Pricew aterho use Coo pers / Internet Advertisin g Burea u, The Advertisin g Associ ation / WARC:
WARC estimate for director ies
34
Summary – full year 2008
• Online advertising is the only medium showing growth

in 2008
• Internet advertising reaches £3,349.7m in 2008
• Online achieved a share of 19.2%, up nearly 4 points

from 2007 (15.5%)
• The market grew on a like for like basis by 17.1% year-
on-year, still maintaining strong growth
35
The digital media mix
• The developing mix of ad products
36
Media Choice
and Rob Mason
The digital media mix (2)
% share of revenues for the full year 2008
Full year total

£3,349.7m
IAB estimates for actual ad spe nd by format are bas ed on sam ples of categ orise d reven ue
from key IAB members provid ed by PwC. Data exc lud es uncl assifie d figur es
Strong growth of search continues
£m
Source: Internet Advertisi ng Bur eau / Pricew aterho useC oop ers
38
Isolating display gives a different picture
Ba s ed on 9 6%
of tota l d is pl a y ad s pe nd
IAB estimate s for industry sector share s are bas ed on samples of categorised net revenue from key
IAB membe rs provided by PwC. Data excludes unclassified figures and covers 96% of online display
revenues in H2 200 8. NB – an immate rial amount of these figures are classifieds
Media Choice
and Rob Mason
2. Some trends
5 in fact
40
1. Participation
41
Outside stuff you do inside
42
Media Choice
and Rob Mason
What to do?
43
44
Orange - Balloonacy
45
Media Choice
and Rob Mason
One moo wonder
46
2. Advocacy
47
Twitter – stay connect in real time
48
Media Choice
and Rob Mason
Sony Bravia
49
3. Contribution
50
Talk Talk and Treehouse
51
Media Choice
and Rob Mason
52
Day 01 – Nic k H or nby
For the first nineteen years of his life, Johnny Razor wasn't
Johnny Razor at all. He was Malcolm Weatherly,
and he was born in Mile End Underground station
on the night of 17th September 1940
53
Day 01 – Ric har d C urtis
But the Razor didn't want to burst into the world naked,
with just a fancy name to his name. First he must gain
knowledge, hone skills, become fabulous. Behind the curtains
of Flitbert Street, he trained for greatness...
54
Media Choice
and Rob Mason
Diversity of message
55
4. Diversity
56
Integration is not matching luggage
57
Media Choice
and Rob Mason
Nike Boot camp
58
Email
59
Mobile
60
Media Choice
and Rob Mason
Social
61
Video
62
Train
63
Media Choice
and Rob Mason
Analyses your driving technique
64
Gear change tutorial
65
Community sharing ‘savings’
66
Media Choice
and Rob Mason
5. Innovation
67
68
Ford Ka in 3D
69
Media Choice
and Rob Mason
5 trends
1. Participation
2. Advocacy
3. Contribution
4. Diversity
5. Innovation
70
Thank you
kieron@iabuk.net
71
Media Choice – Sponsorship
Rob Mason
SBI
72
Media Choice
and Rob Mason
Background – a changed
environment for marketers
• The media marketplace has changed
– Med ia f ragmentation = consumer choice
– “Interruptiv e adv ertising” is increasingly ineff ectiv e
• The consumer has changed

– They want to consume content in their own time
– They choose brands they like: reputation is key
– Brands hav e to engage their customers and stakehold ers
• Sponsorship is well positioned to take advantage

– Sponsorshi p is taking adv antage: f astest-growin g segment
within marcoms ov er last 5 y ears
73
Global sponsorship market
Source: IEG 74
Global sponsorship rights structure
Source: The World Spons orshi p Monitor

75
Media Choice
and Rob Mason
Why is sponsorship growing?
• Sponsorship is ‘content’
– Sponsorshi p is not a ‘channel’, it f eeds the channels
– An enabl er: sponsorship pr ov ides content to driv e
adv ertising, PR, promotions
• Sponsorship is “the brand in action”
– An activ e demonstration of brand v alues and positioning
• Sponsorship is about engagement
– Direct connection with the consumer in their world:
their passion
– Buildin g a relationshi p with stakehold ers bey ond immediate
product/serv ice need
76
Sponsorship the enabler:

at the core of marcoms
Brand Equ ity Defin ition: Dav id A. Aaker, Manag ing Bra nd Equ ity 77
Understanding sponsorship: definition

• Base lev el: an exchange of v alue
– Rights-own er: prov ides rights, assets, lev erage
(via association)
– Sponsor pr ov ides: cash, v alue-in-kind,
marketing and busin ess support
• Adv anced lev el: a partnership
– Working together to meet identif ied
brand/busi ness challeng es
– Sy nergy between rig hts-owner an d sponsor
• A brand & busin ess driv er
– Return on inv estment (ROI): measure if/where possible
– Return on objectiv es (ROO) = clarity of objectiv es is a crucial
starting point
78
Media Choice
and Rob Mason
Brands: the keys to good sponsorship
1. Clarity of objectives
– Def ine y our objectiv es (across the business – it’s not
just brand)
– Assess v alue: a) the v alue to y ou b) what the market pay s
– Buy what y ou need, don’t pay f or what y ou don’t!
2. Planning
– Good sponso rship is routinely a y ear-round pr ocess
– Giv e y ourself time to deliv er optimum results
3. Communication (internal)
– Inv olv e all key stakeholders early to ensure assets
are utilised
– Inv olv e and engage staff
79
Brands: the keys to good sponsorship

4. Activ ation
– The rig hts-fee i s onl y the starti ng point
– Whic h channels ar e r equir ed? incremental budg et or r e- allocation?
– Don’t r el y on the rights- owner
5. Creativ ity
– Maki ng the rig hts and benefits r elevant to y our c ons umers
– Your (br and’ s) equi ty i n the rel ati ons hi p: addi ng val ue,
creati ng a pl atfor m to engag e
6. Ev aluation
– Meas ure per for manc e
– Meas ure agai ns t i niti al objecti ves
– Don’t pos t-rationalis e, but r ec ogni se the ability of s pons ors hip
to deli ver i n ar eas you di dn’t anti cipate
– Exampl e: Cisc o
80
Understanding sponsorship:
it’s not like advertising!
• Sponsorship takes time to deliver optimum results
– Do not choose sponsorship f or an immediate sales uplif t
– Sponsorshi p is ‘mature’ betwe en 3 - 6 y ears
– It can meet changing obj ectiv es ov er time
• Sponsorship is not ‘your space’
– Adv ertising: the brand owns the space they buy
– Sponsorshi p cannot be “controll ed”
• Great sponsorship is based on st rong relationships
– Betwe en rights-ho lder an d sponsor
– Betwe en the sponsor an d his stakeholders/consumers
– A network of deliv ery partners
81
Media Choice
and Rob Mason
Understanding sponsorship:
where you need help
• Sponsorship agencies specialise in sponsorship
– Y ou don’t use a PR agency to deliv er y our adv ertising!
– So don’t ask y our media agency to be the key deliv erer
of y our sponsorship assets
– Choose a sponsorship special ist: they understand
the dy namics of the medium
• But it’s a team game…
– Sponsorshi p is an enable r
– Sponsorshi p agency + client = key f acilitators
– + Multi- agency taskf orce to deliv er in required channels
– + Indepen dent ev aluation
82
The UK sponsorship marketplace

• Sport is 80% of the marketplace
– Football domina nt: AON & Man Utd: £80m f or new
4 y ear deal
– Entertainment sponsorsh ip gro win g, but harder to ‘o wn’
– Premium rights hav e retained (or incre ased) their v alue
– ‘Second-tie r’ rights f ees hav e been decimated
• Corporate Social Responsibility is a key driver
– Londo n 2012 spo nsor/ships will f ocus on this area
– Grass roots, community and participation
(staff and consumers)
– Sponsorshi p is a brand in action = can (re) build r eputation
• Activation: PR and digital are increasing in importance
83
Sponsorship success – some examples

• Flora London Marathon
– Sy nergy: activ ity closely connected to brand proposition
– Own ership: gre at brandi ng, good PR f ollow-thro ugh
– Creating ne w IP: Flora Women’s Challen ge, 10K etc.
• Orange and Film/Cinema
– Differentiated: ‘Owni ng’ a gen re where competitors
are not activ e
– Focus on prov iding customer benef its
– Created uniq ue IP in their space: “Orang e Wednesd ay s”
• Robinsons and BBC Sports Personality of the Year
– ‘Talk-a bout’: f irst-ev er sponsor of BBC’s iconic ev ent
– Brand f it: TV audience mainly f emale(!), two trusted brands
– Robinsons IP: Unsung Hero award – v ery Robinsons
84
Media Choice
and Rob Mason
Clients past and present
SBI, McCormack House, Hogarth Business Park, Burlington

Lane, Chiswick, London, W4 2T H
T + 44 (0)20 8233 5909 F + 44 (0)20 8233 5904
www.sbi.co.uk
85
86

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Media Choice

Dan Hagen, Kieron Matthews

Dan Hagen, Kieron Matthews and Rob Mason

What is traditional media?

Sponsorship Brand Direct

Print Radio Gaming

Cinema TV Outdoor Affiliate

On Pack Promotion Display

Digitalisation Culture of free

Rece ssion Engaged consumer

The rules of media planning

Reach an d fr equ ency are still impo rtant

But eng ag ement, int er act ion , sales and ROI

And th e chang es and choices ar e exploding

Originally it was easier

TV Print Radio Outdoor Cinema

Impact Audience Frequency Proximity Captive

Print Radio Cinema TV Outdoor

This evolution is driving consumer

Consumer control Community

Smart brands are connecting

What we know broadly about

Shr in kin g circulatio ns, p ag e r ates

Com m er cial list en er sh ip high , sh ift in d evices

Contin ued incr ease in t im e sp ent OOH ,

Adm ission are on th e up

So what are the benefits of each

Still p rovid es Place and tim e

Tradin g Fully dig ital

Digit al ro llo ut Onlin e p layer s

Tradin g Flexibilit y and

Techn olo g y Bro ad cast

Tradin g Incr easing

Good for youth

Tradition al m edia is n o long er tr adit ion al

Digit al advances an d lear ning fro m th e Int ern et

Con sum ers ar e d em anding v alue fro m adv ertising

Reach an d fr equ ency st ill r elevant measu res,

Online Pic’ n’ Mix

What I’d like to cover

1. Overview of the market

1. Overview of the market

Market has changed dramatically

• Investment • Media vs. media

Record cuts predicted in Q3 08

Disappeared from the High Street

Shoppers find convenience and value online

This is the first recession

Number of internet users in the UK

Jul-Dec 2007 Jul-Dec 2008 Jul-Dec 20 07 Jul-Dec 2008

Source: NRS UKOM: Jul-D ec 200 8; Jul-Dec 2 007

2 thirds of broadband services are now

12% 26% 62%

14% 32% 54%

34% 38% 28%

Base: All who know speed of broadband connection at home.

2008 adspend figure

An increase of £537.1m year-on-year

2008 vs. 2007

Ne w contributions in 2008 represented £88.3m

2008 market share - 19.2% (15.5% in 2007)

Year on year growth for 2008

Total adverti sing mar ket