PART 4: MEDIA IN A WORLD OF CHANGE

Chapter 12 | Media Basics

Chapter 13 | Paid Media
Chapter 14 | Owned, Interactive, and Earned Media
Chapter 15 | Media Planning and Negotiation

I. MEDIA
All marketing communication messages—other than face-to-face conversations—are carried by some
form of media.

Media - we are referring to the way messages are delivered to target audiences and, increasingly, back
to companies as well as among audience members themselves.

Media make up the channel step in the communication model conveying the message from the
company or brand to its customers.

To get a picture of the scope of media, consider the following list:

Internet Advertising Newspapers Direct mail
Digital media Out-of-home Radio online
Television Branded entertainment Cable online
Social networks Digital billboards Digital transit
Cable Mobile advertising Digital in-store
Alternative media Television syndication Movie theater advertising
Guerilla marketing Newspapers online Satellite radio
Search engine advertising Television online Ambient media
Broadcast/cable product In-store/point-of-purchase Music product placement
placement ads
Radio Native advertising
Billboards Transit

A. Changes in the Media Industry

 Media spending in 2015 finally passed its prerecession peak, with spending on mass media and
integrated marketing tools surpassing $400 billion.

 Media spending has continued its move away from traditional outlets to vehicles that provide
more feedback and accountability for the money spent, with internet advertising growing at 8
percent, the fastest growth rate of all media.

 TV advertising spending is projected to grow at about 3 percent through the early 2020s and will
yield its status as the top media advertising vehicle. Together, television advertising and internet
advertising are projected to account for close to 60 percent of total global advertising revenue.

 According to Deloitte‘s 2017 Media and Entertainment Industry Outlook, the rise of on-demand
content (e.g., Netflix, Hulu) is challenging the traditional advertising model, pushing advertisers
to explore other avenues for promoting their products.
B. Media Types and Terms

- The plural noun media is an umbrella term for all types of print, broadcast, out-of-home, and internet
communication.
- The singular noun medium refers to each specific type (e.g., television is a medium).
- A media vehicle is a specific television program (TV Patrol in Kapamilya Channel), newspaper
(Philippine Daily Inquirer), magazine (METRO Magazine), or radio station or program (TELERADYO
Balita).

 Size and Profile of Audience Media, particularly those used in advertising, are referred to as mass
media, the communication channels through which messages are sent to large, diverse audiences. A
mass medium reaches many people simultaneously, and it uses some technological system or device to
reach them (as opposed to personal communication). In contrast, the new computer-based media of the
digital revolution are essentially personal, and messages are individually delivered.

 Targeted and Interactive Conduits Another category of media refers to the way they transmit
messages. Most mass media are defined by their audiences, and when they are used in brand
communication, it is because they allow messages to be conveyed to people who fit certain demographic
or psychographic categories. If you want to reach young men who like sports, for example, you might
advertise in Sports Illustrated or on ESPN because their audiences match the profile of your target.

 Corporate versus Consumer Use of Media So far, we have been discussing media primarily from
the viewpoint of companies and their brands. In the Part 4 opening essay, we mentioned that consumers
as well as companies use media, and they use media for specific purposes. For example, companies want
to reach certain targets so as to accomplish such objectives as building brand awareness, presenting
brand information, and persuading people in the target market to change their attitudes.
But just as important is that consumers use media for their own purposes

 Paid, Owned, and Earned Media Recently, the media industry has begun separating media into
three types of channels: paid media, owned media, and earned media: Paid, Owned, and Earned
Media Categories:

 PAID MEDIA are the traditional measured media, such as print and broadcast, where ad
placements—both time and space—are bought by the company or organization. These ―established‖
or ―legacy‖ media channels are distinctive in that the advertising spending on them, as well as the
size of their audiences, is tracked by media research services:
 Print Newspapers, magazines, inserts, directories
 Broadcast Radio, television, movie trailers
 Place based Billboards, transit, kiosks, painted buildings and cars, movie trailers, event and
sponsorship ads, stadium and aerial ads
 Online Banner and display ads, search advertising

 OWNED MEDIA are channels that are controlled by the organization and that carry branded
content, such as websites, direct-mail and email address lists, Facebook sites, blogs, public relations
publications, company signage, and catalogs. In addition, we also include communication platforms
that rely on one-on-one communication, such as personal sales or customer service:
 Corporate media Stationery, signage, environmental design, delivery trucks, staff
appearance, bags.
 Branded media Films (video or online) and webisodes, video games, books, events, apps,
licensing and naming rights
 Retail Packaging, merchandising materials
  Promotions and public relations Literature and publications, annual reports, premiums and
gifts, sales kits, training materials:
 Video Corporate and promotional videos—DVDs and streaming
 Publications Magazines, newsletters, annual reports, brochures
 Publicity Print, video, and online news releases; fact kits, photos and other graphics
 Events Displays and exhibits, speakers, information kits
 Brand reminders Premiums, gifts
 Out of home (OOH) Sign spinners, flash mobs

Some owned media also open up the opportunity for interactivity:

 Corporate interactive media Kiosks, digital installations
 Direct response Mail, phone, online, catalogs
 Personal contact Personal sales, customer service—customer comment cards and surveys
 Interactive public relations and promotions Sampling, events, informational and media
tours, news conferences, speeches, trade shows, guerilla marketing
 Digital marketing Email, websites and e-commerce, online catalogs, blogs, paid posts, social
media accounts
 Mobile marketing Promotional messages sent to mobile phones and devices

 EARNED MEDIA are channels where brand communication is spread by outsiders, such as social
media users or news media that carry publicity stories where the brand may be mentioned.
 Publicity Hits and mentions in news media
 Word of mouth Email, texting, buzz and viral communication, business-to-consumer-to
consumer influence
 Social media Facebook, Twitter, LinkedIn
 Interest sharing YouTube, Pinterest, Tumblr, Instagram, Snapchat, social games

Evaluating Paid, Owned, and Earned Media Use

C. The Evolution of Media Forms and Functions

We can summarize these changes in technology as eras:

 The print era Ink and print images reproduced as newspapers, magazines, and posters.
 The broadcast era Visual and audio information in the form of radio and television programs originally
transmitted through airwaves but now also distributed by cable and satellite.
 The digital era Electronic information transmitted through the internet but, like broadcasting, now also
distributed through cable and satellite. Saw the birth of corporate websites and e-commerce.
 The social media era Social networks connecting friends and contacts. Also where users can become
publishers and generate their own content, some of which may be brand related.

D. Key Media Players

In terms of jobs and career opportunities in media, there are professionals who both sell and buy media. It is
important that you understand the difference. First let‘s look at the professionals who sell space or time in
media.

 Media salespeople, also known as media reps (short for media representatives), work for a specific
vehicle, such as a magazine or local television station, with the objective of building the best possible
argument to convince media planners to use the medium they represent. Currently, media conglomerates
dominate media sales. CBS, for example, created a coordinated ad-selling division, called CBS RIOT,
which stands for ―radio, internet, outdoor, and television.‖ The new division was designed to serve
primarily local markets and offers cross-media (also called multichannel) integrated deals. Disney
reorganized its ad sales to deliver a similar cross-media ad sales program for its kids‘ media properties.

 Media brokers are people (or companies) who sell space (in print or online) and time (in broadcast) for
a variety of media. If an agency wants to buy space in all the major newspapers in the West, for
example, the agency‘s buyer could contract with a media rep firm whose sales reps and brokers handle
national sales for all those newspapers. Working with a broker allows a media buyer to place a complex
buy with one order.

On the buying side, media planners, buyers, and researchers work primarily for agencies, although they can also
be found working for marketers who handle their own media work in-house. Their challenge is to determine the
best way to deliver a message, which is called media planning. The job functions are as follows:

 Media researchers compile audience measurement data, media costs, and availability data for the
various media options being considered by the planners.

 Media planners develop the strategic decisions outlined in the media plan, such as where to advertise
geographically, when to advertise, and which type of media to use to reach specific types of audiences.

 Media buyers implement the media plan by contracting for specific amounts of time or space. They
spend the media budget according to the plan developed by the media planner.

 Media-buying companies, are independent companies that specialize in doing media research,
planning, and buying. They may be a spin-off from the media department in an advertising agency, but
because they are independent companies, they work for a variety of clients. They consolidate media
buying to get maximum discounts from the media for the volume of their buys. They then pass on some
of this savings to their clients.
II. Fundamentals of Media Strategy
Media often make up the largest single cost item in a marketing communication budget, especially for consumer
goods and services. Procter & Gamble, for example, spent $10.1 billion on advertising worldwide in 2014,
although its total promotional spending approached $18 billion. (This later figure includes such marketing
communication activities as sampling, direct mail, events, sales aids, and displays, among other programs.)

A. The Media Plan

The challenge that marketing communicators face is how to manage all the media opportunities and yet
maximize the efficiency of budgets that are inevitably too small to do everything the firm would like to do to
reach every current and potential customer. All this decision making comes together in a media plan, which
identifies the optimal blend of media to use to deliver brand communication messages efficiently to a targeted
audience. It is sometimes referred to as connection planning in that brand stewards working with media
planners are trying to find ways to connect their brands to consumers‘ interests and lives, particularly to their
customers, who, if they are happy with the brand experience, may become loyal to and advocate for the brand.
The goal is to balance message impact and cost—maximizing impact while minimizing cost—while at the same
time building an enduring brand relationship.
B. Key Strategic Media Concepts

This section is about the language of media. You will need to be familiar with these basic components in media
strategy and planning.

 Media Mix In most cases, a media plan will include more than one medium and therefore is called a
media mix. This media mix is the way various types of media are strategically combined to create a
certain kind of impact. For example, most consumers recognize the ―Shot on iPhone‖ campaign, having
seen one of Apple‘s 10,000-plus billboards across 25 countries showcasing the amazing photographs
real people managed to shoot on their iPhones. The photos also appeared across newspapers, magazines,
online, and in a set of 15-second TV commercials.

Because of the breadth of IMC plans, the term multiplatform has become popular to describe
multichannel and multimarketing communication areas. In other words, in IMC plans, you will find, in
addition to traditional measured media advertising, a variety of other tools being used, such as events
and sponsorships, social media (such as Facebook and Twitter), branded entertainment (such as films or
video games in which the brand is the hero), product placement, and guerilla marketing in addition to
sales staff and channel promotions, training programs, publicity, and customer service.

 Targets and Audiences One of the biggest challenges in developing a media plan is matching the
advertiser‘s target audience with the audience of a particular medium.

Dramatic differences are seen in the media experiences of these audience groups:
 Traditionalists grew up with newspapers, magazines, and radio (little or no television, no cell
phone, no computers, no internet).
 Boomers, who are in their ‗50s, 60s, and 70s, always had those three types of media but also grew
up with television (but still no cell phones, computers, or internet).
 Gen Xers, who are now in their 40s and 50s, grew up not only with the media of the preceding
generations but also with tape recorders, Walkman portable radios, video games, VCRs, and cable
television (still no cell phones, computers, or internet).
 Gen Yers, who are thirty-somethings, had all the above media, but also grew up with the computer,
as well as satellite television, the internet, CDs, and cell phones (finally, we have a generation that
grew up with computers and cell phones).
 Millennials have grown up with DVDs, TiVo, satellite radio, iPods, and smartphones and, more
recently, have witnessed the introduction of iPads, Facebook, and Twitter. The marketing and ad
industries are still learning about the next category of consumers: Generation Z.

C. The Basis for the Buy

Decisions about which media to use are based on the profile of the audience that reads, views, listens, or
visits a medium. Media sales reps provide their own data, but research by account planners and media
researchers also uncovers media use patterns that help make these decisions.

Media planners use a variety of terms to identify and measure audiences.

 Exposure Media impact begins with exposure. The first step in making an impression is perception:
you have to be exposed to a message before any other effect is possible. Exposure is similar to
circulation for television in that it‘s a rough estimate of the number of households watching a
program. However, just because a television is on doesn‘t mean anyone is paying any attention to the
program, let alone the advertising that surrounds it.
 Media exposure is related to the idea of corporate and consumer control of media. In other words,
companies may control the media buy, but they don‘t control what their target sees. In this cluttered
media environment, consumers control what they read and watch, and media analysts recognize that
with hundreds, maybe thousands, of media choices, control of media exposure now lies with the
consumer. Exposure, in other words, doesn‘t equate to readership or viewership. At the most basic
level of media planning, however, media planners still must estimate the number of exposures
delivered by a media mix in putting together alternative versions of a media plan.

 Impressions An impression is one person‘s opportunity to be exposed one time to an ad in a specific

vehicle. Impressions can be added up as a measure of the size of the audience either for one medium
or for a combination of vehicles in a media mix.

 Circulation Impressions are different from circulation because impressions (at least in print)
estimate the readership or the opportunity to be exposed rather than just the circulation, which refers
to copies sold.

 Gross Impressions Circulation doesn‘t tell you much about the actual exposure of a print ad. A
magazine may have a circulation of 1 million, and it might be read on average by 2.5 people per
issue, so impressions for that issue would be 2.5 million. If the ad ran in three consecutive issues, the
estimate of total impressions, called gross impressions, would be 7.5 million. Similarly, the number
of viewers watching a program might be greater than the number of households reached because
there may be more than one viewer watching and the commercial may be repeated several times in a
program. Media planners add up all those watching and reading and multiply that number by the
number of placements to estimate gross impressions for a media plan.

 Ratings Gross impression figures become very large and difficult to work with, which is why the
broadcasting industry uses ratings (percentage of exposure), which is an easier measurement to work
with because it converts the raw figure to a percentage of households.

A television show having a rating of 20 means that 20 percent, or one-fifth, of all the households
with televisions were tuned in to that program. Note that in the U.S., 1 rating point equals 1 percent
of the nation‘s estimated 120 million television homes; that‘s why planners describe this program as
having 20 rating points, or percentage points. A 20 rating is actually a huge figure because the
fragmentation of cable has diversified television watching and made it very difficult to get 20
percent of the households tuned to any one program.

 Share A better estimate of impressions might also be found in a program‘s share of audience, which
refers to the percent of viewers based on the number of sets turned on. The share figure is always
larger than the rating because the base is smaller. For example, the 2015 Super Bowl, which at the
time was declared the ―most-watched television program ever,‖ got a rating of 47 (47 percent of all
households with television), but its share was 71, which means that 71 percent of all U.S. televisions
turned on were tuned to the Super Bowl. The peak total audience was 120.7 million viewers.

 Reach and Frequency The goal of most media plans is to reach as many people in the target
audience as often as the budget allows. Reach is the percentage of the media audience exposed at least
once to the advertiser‘s message during a specific time frame.

When we say that a particular media vehicle, such as the Super Bowl, has a wide reach, we mean that a
lot of people are watching the program. When we say that it has a narrow reach, such as the El Nuevo
Herald, we mean that a small percentage of the newspaper audience is reading that publication. The idea
 for the iPod launch was to initially target technologically sophisticated people who are also opinion
leaders (whose thoughts on innovations like the iPod would influence many others).

Equally as important as reach is frequency, which refers to the number of times a person is exposed to
an advertisement. There‘s a rule of thumb that you have to hear or see something three times before it
makes an impact. That‘s the reason frequency of repetition is so important in many advertising
campaigns. Different media have different patterns of frequency.
Radio commercials, for example, typically achieves high levels of frequency because they can be
repeated over and over to achieve impact. Frequency is more difficult to accomplish with a monthly
magazine because its publication—and an ad‘s appearance in it—is much more infrequent than a radio
broadcast.

 Intrusiveness Because of the high level of commercial message clutter, companies in the past have
valued creative ways of attracting attention to their messages. Intrusiveness—the ability of a medium to
grab attention by being disruptive or unexpected—is the primary strategy for countering clutter. Most
media use intrusiveness to some degree as a way to grab the attention of inattentive media consumers.

III. Changing Patterns of Media Use

Marketing communication media are in an incredible state of change, partially because of the introduction of
the computer and the internet, but also because of the way people choose to spend their time.

A. Consumer Use of Media

Consumers‘ use of media is changing as fast as the technology. It used to be that most American audiences were
involved with three television networks, a newspaper, and one or two magazines.

The modern media landscape includes hundreds of television channels, a huge number of special-interest
publications, millions of websites, and new electronic media with content on demand through the internet that
enables dialogue, conversation, connection, and community.

There are other trends as well:

 Consumer Control - Rather than controlling media choices, consumers are much more in control of
their own media and designing their own media landscapes, from video games to Twitter. The people
formerly known as ―audiences‖ are creating their own content, a practice we have referred to as
consumer-generated content, such as the homemade videos and commercials seen on YouTube and
personalized audio listening courtesy of the iPod and other MP3 players. Entertainment has become as
much of a driving force for modern digital media as news was for traditional media.

 Media-Driven Lives - A major change in consumer media use is the increase in media-driven lives. In
their youthful days, the traditionalists‘ and baby boomers‘ lives were dominated by work and family
activities. In contrast, more recent generations spend more time with media of all kinds, and those
channels are more intertwined with their family, work, and leisure time.

 Media Multitasking - People not only spend more time with media but also use more than one medium
at a time. According to Nielsen, a whopping 86 percent of US smartphone owners say they use their
devices as second screens while watching TV, and nearly half do it every single day. Media users may
sit at a computer searching for information, or they may be playing a video game at the same they are
listening to an iPod and texting on their cell phones.
  Social Media Traditionally, most media involved a solitary experience, such as reading a paper or
listening to radio, but another transformation is the creation of truly social media.

First there were blogs, then MySpace and Facebook, and then Twitter, Instagram, and Snapchat, all of
which made personal space public. The immediacy and intimacy of a phone conversation has exploded
into millions of interactions via Twitter and other social media. (Think about it: If you tweet to your 1
million followers, are you broadcasting? You probably don‘t know the 1 million recipients, so has
Twitter become a form of mass media?) Probably the biggest change is found in the increase in
interactive media. We‘ve always had interactivity in personal selling and direct marketing by telephone,
but technological changes have forced traditional media to change their forms. Video game consoles
continue to give new purpose to television screens, video game characters are appearing in a variety of
advertising, and a TV‘s ability to display video game action is now a key factor in television purchasing.

New technology has brought methods and devices for readers and viewers to participate in the creation
of the message and initiate brand contact and to respond to advertisers. New mainly interactive media
forms, such as social media (Facebook and Twitter), have opened up entirely new dimensions of
interactivity that challenge brand stewards to keep up with their possibilities.

B. Alternative Media Forms

If you want a fun and exciting career area, consider any of the myriad types of alternative or nontraditional
media. We use the term nontraditional media to refer to media platforms and forms of contact other than
traditional advertising media. The winner was Milwaukee, Wisconsin–based advertising agency Hanson Dodge
Creative. A new form of transit advertising in New York City is the face of MetroCards, the cards that regular
riders of subways and buses use to pay their fare, which have been redesigned to allow space for small reminder
brand ads.And then there‘s the corn maze QR code shown earlier.

Because teens are often the first to experiment with new media forms, the search for nontraditional media—that
is, new innovative ways to reach target audiences—is particularly important for advertisers trying to reach the
elusive youth market. In some ways, this search for innovative ways to deliver messages is just as creative as
the message concepts developed on the creative side of advertising.

 Product Placement Technological trends as well as the changing patterns of consumer media use
also affect media planning. For example, because of the difficulty of reaching targeted audiences with
traditional media such as television, brands are increasingly showing up in movies, video games, and
television programs. This practice is known as product placement.

For years, we have been exposed to product placement, in which a brand appears in an unskippable
moment where viewers see brand information in a noncommercial, highly engaging way. With product
placement, a company pays to have verbal or visual brand exposure in some other entertainment form.
For example, in 2015, Mercedes-Benz paid movie producers to have their cars appear in 9 of the year‘s
31 top films, ranging from short cameos to scene-stealers. In the Fast and Furious series, two of the
most important rituals involve Dodge muscle cars and Corona beer.In the film Martian, a Vivo
smartphone gets a cameo in the hands of NASA‘s public relations director Annie Montrose, an unlikely
pairing considering Vivo is a Chinese brand. The phrase ―Baskin-Robbins always finds out‖ was one of
the funniest scenes in the Ant Man film. In Skyfall, Heineken paid a reported $45 million to replace the
seemingly irreplaceable—as 007 skips his usual vodka martini for the Dutch beer.
 Branded Entertainment Because media are being used more for entertainment, marketers are
increasing their efforts to design branded entertainment. Similar to product placement, the use of the
media of entertainment to engage consumers with brands is also referred to as advertainment or branded
media.

An example of branded entertainment is Axe‘s production of an animated program, City Hunters. It took
almost three years and more than 100 people on four different continents to produce the program. The
creative team was composed of award-winning screenwriters, novelists, and creatives under the
direction of the Catmandu Branded Entertainment company.

 Search and Mobile Marketing Consumers are in control of not only their information search, but
also how they want to be connected with an organization or brand. Because some 97 percent of
consumers use computers to search for product and store information, marketing strategies are designed
to assist in this process. Most (90 percent) of the search is done through search engines such as Google,
Yahoo!, and Bing; however, consumers also use internet directory listings and do comparison shopping
on review sites like Angie‘s List. Mobile search using cell phones is one of the fastest growing media
forms.36 According to Google, more Google searches take place on mobile devices than on desktop
computers in 10 countries, including the United States and Japan.

Mobile marketing is an exciting new platform for location-based messages that, among other uses, can
reach consumers with a promotional message when they are in the neighborhood of a store.

 Word of Mouth Because we recognize the power of personal communication in decision making,
creative folks are challenged to come up with exciting new ways to generate buzz and convey brand
messages through word of mouth. Buzz is important because it means that people are talking about a
brand, and when it gets passed rapidly through a network of friends, we call it viral communication. This
buzz may be the most important factor in consumer decision making because the recommendations of
others are highly persuasive, more so than any advertisement.

 Guerilla Marketing Exciting and involving personal experiences are designed to reach people on the
street and in public places through a practice known as guerilla marketing, which is a hot area of
alternative marketing communication. At its most basic, people are employed in places with a lot of foot
traffic— streets, malls, and plazas—to hand out sales materials, such as coupons, samples, or other
leaflets. This place-based strategy can create unexpected personal encounters with a brand.

Effective guerilla marketing uses surprise and curiosity to catch attention and create excitement as well
as buzz about a brand.