GAME

ARIZONA STATE UNIVERSITY

MKT 365 - ADVERTISING AND BEYOND: CUSTOMER-CENTRIC
BRAND DEVELOPMENT
WEEK 10

Introduction:
Games are one of the most popular downloads on digital devices, including
computers, tablets, and cell phones. People play games to take a break from other tasks,
compete with friends, and have fun on their own when bored or traveling long distances.
Many people report that they play games while watching television, adding to the trend of
multitasking in our society. Some of the games available for these devices are free, and most
of these free games are advertisements. As the amount of time spent in gameplay increases,
players' access to ads also increases, with more than half of gamers clicking on ads at least
once a week.

30.1. GAME DEMOGRAPHY:

In 2012, game developer PopCap's research showed that nearly half of Americans
play games at least once a month; of these people, nearly half play daily. In 2013,
Americans spent more than $20.5 billion on games, with about 65 percent of that amount
spent digitally through online downloads for consoles, PCs, smartphones, and tablets
(Takahashi 2013). More than half of games are purchased by gamers.

Gamers cut across demographic lines, with social games (such as Farm-Ville)
leading to women and other games adding varying degrees of appeal among people aged
between 13 and 50. As a result, in-game advertising can be used in a variety of strategies. If
the plan is to reach a lot of women aged 18+, word games like with friends can be used. If
the plan is more targeted, say to people interested in basketball, then a game like EA Sports
"NBA LIVE" would be suitable.
30.2. IN-GAME AD PLACEMENT:

Just as media buyers work with television networks, there are gaming networks that
allow media planners to place branded messages in a number of different games through a
single network. Game networks like Ad4Game and MochiMedia work with a wide variety
of advertisers. With networks like these, games are selected for inclusion in media plans
based on different criteria, including gender and age demographics, app settings, type of
mobile device used, and type of carrier network. The network provides metrics that can
include impressions, taps, voice pressure through numbers, unique visits, average time
spent, and such. The pricing for this type of message is similar to the pricing strategies of
other companies that offer bidding and fixed fees for clicks and click throughs. With so
many games available, it is difficult to compare the value of a game to the value of an ad on
Google. However, anecdotal information suggests that clicks on
-(or press -) through much higher rates for gaming ads than for other types of ads.

Companies that want to create games around specific brands generally work directly
with game developers to do so. The developers who created Angry Birds (Rovio) and
FarmVille (Zynga) worked with agencies to develop games that were fun and easy to play
but simultaneously provided a strong branded message.

30.3. IN-GAME ADVERTISING:

Different games offer different advertising opportunities and formats. Some ways to
think about the different types of game placement options are listed below:

1. Around-game environment ads: ads that exist in the space around a game, such as banners,
digital video ads, and downloadable content from consoles like Xbox.
2. In-game environment ads: Static ads that appear in the game such as banners, billboards,
and storefronts.
3. In-game immersive ads: ads that appear in elements related to gameplay such as brand
names on cars driven in racing games or branded items that can be downloaded as part of
gameplay.
4. Advergame: a game designed around the product or service being advertised.

Each of these options has different strengths and weaknesses.

A. Around-Game Environment Ads:

These types of ads appear in the space around a game, often as banners or logos. For
example, the game might be in the center of the screen with a banner directly to the right of
the game. This type of placement works well for advertisers-banners tend to cover a small
amount of 'real estate' on the game screen, especially compared to the amount of space
banner ads receive on websites. In fact, these types of ads can appear from one-sixteenth to
one-eighth of the screen. Besides increasing the likelihood of being seen by players, the size
of the ad can make it easier for someone to click on it - intentionally or unintentionally.
Even an unintentional click can have the benefit of driving to a branded site.

B. In-Game Environment Ads:

Game environment ads are static ads that appear in the game environment: during a
game, they may appear on the wall of a race track, or on the front of a shop that the driver
passes on the street. These types of ads contribute to the game experience, with the catch
that gamers may not take the time to stop the game to click on the ad.

Alternatively, it could be an advertisement that pops up when a user starts from one
level of the game to another. Advertisers can show a short video or mini-screen that users
must view before continuing the game, which ensures your business gets noticed.
Introductory screens are shown after a user completes certain segments of a game or when
there is a transition in the storyline. Some users may get annoyed with ads popping up on
their phones, but that doesn't discount the fact that they are willing to deal with them in
order to continue playing the game. And, unlike TV commercials, where people tend to flip
through channels, mobile users tend to stay on popular ads, especially if they are short. This
almost guarantees that your business will get some form of attention.

C. In-Game Immersive Ads:

Ads that are pre-sniffed in an element related to the gameplay - such as the brand
name on a car driven in a racing match or a branded t- shirt worn by a character - and can be
downloaded. Some of the most effective ads in games are those that reward the user. For
example, users can be given bonus coins for viewing ads or performing other actions, such
as visiting websites. Reward-based ads are especially easy to display in quest-style games in
 the form of pop-ups or even integrated right into game options or features.

In-game advertising can extend beyond the game itself. Players can earn game points
or marks by following a brand on social media sites like Facebook or Twitter, sharing brand
posts with friends, or posting high score photos to sites like Instagram.

D. Advergames:

These are games designed around the product or service being advertised.
Companies as diverse as M&Ms, Lego, Burger King, Chipotle Mexican Grill, and fashion
designer Roberto Cavelli have created advergames. These games tend to be highly targeted
to specific groups of consumers and can add a lot to brand loyalty as game players associate
positive experiences with the brand. However, success can be undermined by obstructive or
intrusive advertising experiences, games developed only for certain devices, poor build
quality, lack of awareness due to clutter and competition, and lack of maintenance updates to
keep pace with device upgrades and bugs.

30.4. Game Ad Pricing:

As with all digital media, there are various pricing models for advergames, including:

⚫ Cost-per-thousand (CPM): inventory is purchased by advertisers based on the number of

impressions delivered.
⚫ Cost-click (CPC): advertisers pay for each user click on a banner ad.
⚫ Cost-per-action (CPA): the advertiser pays if the user or gamer performs the desired action
with the advertiser: for example, the advertiser pays a fee every time the gamer downloads
or buys a branded t-shirt. This is an example of a performance ad network.
⚫ Cost-per-view (CPV): advertisers pay when users or gamers click on a video.
⚫ Cost per session (CPS): advertisers pay for each gameplay session that features a large
amount of brand integration.
⚫ Sponsors: advertisers pay for any branded opportunities within the gaming environment.

As is evident from this chapter, in-game advertising is by no means standardized,

 which can be an advantage for some brands but may be challenging for more traditional
brands looking to compare the costs of one type of experience to another. In addition, there
is a clear lack of what constitutes an impression in in-game advertising: is it 10 seconds?
Five seconds? What is optimal for the brand? Also, there are challenges with cross-platform
placements. With new platforms being discovered all the time, and As customers shift
between platforms, brands must constantly assess which is the best space for them to reach
their audience; creative executions must be adjusted accordingly.

Advertisers should also be aware of the problematic, as some advertisers may not
want to be associated with video games that contain questionable violence and sexual
content. Several studies have shown that while a brand may want to be in a popular violent
video game, many consumers have a negative reaction to brands that appear in such games.
According to the hypothesis, our natural negative reaction to blood and gore may be
switched to the feature, which limits the effectiveness of the blood placement. There is also
a reaction to branded games that target children, particularly food-sponsored games that
parents may not want to promote to their children. However, there is still much to learn
about this opportunity - our appetite for video games is not diminishing.

MEDIA ETHNICITY:
While advertisers may talk about ethnic media specifically, the types of media used
to target ethnic-based groups are the same as all other advertising: broadcast, print, Internet,
social media, and so on. The term ethnic media refers to media vehicles that target specific
groups of people such as members of ethnic groups, foreign language speakers, members of
certain religions, and similar specialized audiences. In New York City alone, there are 270
ethnic communities and channels that produce news in 36 languages, whether for print,
radio, TV or the Internet.

31.1. TELEVISION:

Television is usually thought of as a general tool - that is, a tool that reaches different
parts of society, which it does, but there are specialized programs that aim to reach specific
audiences, as well as specialized networks. Spanish-language television networks include
Univision and Telemundo, along with several other programs. Some specialized television
programs are also aimed at Spanish-speaking audiences, particularly on local channels in
 certain markets. Table 31.1 on the Spanish television market. Los Angeles is the largest
Hispanic or Latino market, and several other markets are listed that do not rank as high in
terms of general audience as the Hispanic markets.

In addition, there are some television stations in the United States that broadcast in
foreign languages, such as Korean, Japanese, and some Chinese dialects, in markets where
many people have emigrated from those countries. There are also television stations that
rebroadcast programs from other countries.

31.2. RADIO:

Because the cost of running a radio station is cheaper than running a television
station, and because there are more radio stations in the U.S. than television stations. Radio
stations can also be owned by groups that want to promote certain views or values, such as
labor unions, religious groups, political contributors, and others.

31.3. NEWSPAPER:

Since the early days of the Western world, foreign-language newspapers have been
circulating. Newspaper broadcasters in the United States continued to print newspapers in
various languages, including Arabic, Chinese, Danish, Italian, Japanese, Korean, Norsk,
Portuguese, Russian, Spanish, Swedish, and even Urdu.

Of course, there were newspapers aimed at specific ethnic groups, such as African
Americans. According to some estimates, there are more than 250 such newspapers and
publications, and there are even groups or chains of African American newspapers.

Like radio, some newspapers are also owned by and aimed at specific political
affiliations, labor unions, and religious groups. Newspapers published in other countries are
also delivered and sold in the United States.

Most ethnic and foreign language newspapers derive all their income from
advertising, not from circulation. Moreover, these niche newspapers are usually published
weekly, offering an added benefit to advertisers as the message will be available in homes
 for the entire week.

31.4. MAGAZINES:

Some magazines, like other mass media, are also for specific ethnic groups. Some
major magazines are used for African American interests, and as you can see in table 31.4,
some of them are published with a general purpose. There are also some magazines
published in the United States in foreign languages, but many magazines published in other
countries are also sent to the United States. With newspapers, coverage is usually timely.
With magazines, however, coverage can focus on less time-consuming events, or editors can
choose to publish news that has little - if any - to do with time. These factors make the
import of magazines broader than newspapers.

31.5. OTHER MEDIA:

In regions or neighborhoods with many foreign language users, business signs often
appear in those languages. There are, of course, thousands of Internet sites originating in the
United States that use languages other than English, and because the Internet is so accessible
worldwide, foreign language websites are available to U.S. citizens. Religious groups,
political parties, labor unions, local political groups, workers' groups, and every kind of
entertainment or display imaginable also have Internet information. With the rapid growth of
new media and social media, such interests are likely to be served even better and more
specifically in the future.

Through other digital advertising, ad networks that cater to ethnic audiences now
provide a simple way for advertisers to make their content available through a single media
buy using standardized digital metrics. Some of these network opportunities are also cross-
platform opportunities, maximizing reach and frequency to these target audiences.

PROMOTION SALES
Sales promotion is not a medium. Nor is it a specific method of buying a medium
such as direct response. Sales promotion is an activity to stimulate short-term demand for
products. Since most brands are under short-term pressure to perform, sales promotion
activities are a big part of many brands' integrated marketing plans.
 As a communications planner, you will be faced with planning, developing, and
analyzing sales promotion activities. Even if you are not directly involved in those activities,
the marketing director or brand manager will consider sales and dollar promotion activities
versus alternative approaches to communication.

So what is the world of sales promotion? The term sales promotion can be
misunderstood. Sometimes it is related to advertising. Other times it is related to publicity.
Other times it's seen as a sales responsibility. The reality is that sales promotion can fall into
a number of camps. Let's define what sales promotion is and how we treat it in the context of
media planning.

Sales promotions are direct inducements that offer additional incentives along the
marketing route to accelerate product movement. There are two types of sales promotions:
trade and consumer.

Trade promotion is called push marketing. It consists of activities designed to ensure

retailer cooperation by the manufacturer. These activities may have an effect on consumers,
but they are aimed at the distribution channel.

In trade promotion, the manufacturer provides incentives to retailers to highlight its

products. This can be as simple as a discount or other dollar incentive to stock or sell the
product. Often the retailers will pass on all or part of these savings to consumers through
short-term or special sales.

Other trade incentives include advertising balance as a percentage of gross costs or

fees, where retailers can purchase advertising featuring the brand as well as other private
retailers' products.

Another popular trade promotion is the display allowance, in which a manufacturer

pays a fee for an in-store floor display to promote the product.

32.1. CONSUMER PROMOTION:

Consumer promotion is called pull marketing. It involves activities aimed at

consumers to persuade them to buy or solicit your brand on the spot.
 Consumer incentives can take many forms. Usually they use direct incentives to buy
now or buy more, visit a store, request literature, or take some form of action. The
motivation can be money, gifts, prizes, or special information.

The idea behind consumer promotions is to get products off the shelves now. From a
marketing standpoint, consumer promotions should accelerate the buying process by one of
two methods: (1) creating incentives for current consumers to buy a particular product, or
(2) convincing new customers to try the brand.

Of course, you need to be aware of trade promotions, as they compete for your
integrated marketing dollars. Nonetheless, the focus of this chapter is on consumer
promotions. Consumer promotions can involve traditional media as well as alternative
media channels. Regardless of the type of promotion, the goal of sales promotion is to make
sales happen in the short term. That is the measure of success.

Consumer promotions are welcomed by the consuming population. One study

showed that 95 percent of all consumers are interested in products that have some form of
discount. Other studies report that 50 percent of shoppers clip coupons and 88 percent have
bought one coupon, bought one (BOGO). Consumer promotions are an important part of a
marketer's toolkit.

32.2. LANDSCAPE ON SALES PROMOTION:

Although most advertising and public relations agencies perform sales promotion
activities, there are agencies that specialize in sales promotion, so performing these activities
is at a very high level.

Each of these agencies takes a slightly different view of what sales promotion is. In
the case of George P. Johnson, they see themselves as helping marketers create experiences.
Their experiential marketing approach combines large-scale events with short-term
promotional strategies. On the other hand In other words, Carlson marketing combines
customer relationship management with sales promotion activities so that they move
towards brand engagement. Mosaic sales solutions specialize in the human resource side of
sales promotion. They hire, train, and develop promotional solutions that require a wide
field to build promotional huts, go door-to-door, or be an extension of a company's sales
 force for short periods of time.

Integer Group is the kind of agency that people imagine when they think of a sales
promotion agency. It is an advertising agency that focuses on "the intersection of brand and
sales" "The integral group develops retail promotions for manufacturers to move products
off the shelf and serves as a marketing partner within a brand organization.

When you look at the other names in this top 10 list (look back at table 32.1), you'll
find that sales promotion is a catchall for many marketing communication activities. Each
company defines its specific niche in its own way. Sales promotion does not overlap with
direct response advertising and event marketing. Since promotions are designed to elicit a
response, there is a direct response element used in sales promotions. Many times these
responses result in customer names, so there can be a database component to sales
promotions. And because promotions can take large-scale events as a catalyst for consumer
interaction, there can be an event component to sales promotions as well.

These diverse companies are a reflection of the variety of sales promotion activities
available to marketers today. Let's examine the most popular types of sales promotion.

1. Types of Sales Promotion:

The types of sales promotions available to a marketer are based on meeting some
typical objectives, the most common of which are: to obtain consumer trial of the product; to
reward brand loyalty; to encourage consumers to trade up; and to stimulate consumers to
buy more of the brand. These are all offensive marketing strategies. With care, a marketer
may use promotional tactics so that other brands do not steal share when they also
implement promotions. The section below covers the main promotional strategies that fulfill
these objectives.

The role of media planning in a sales promotion strategy may be to find the best
medium to deliver the strategy or to find media partners to best execute the strategy. Most
media sales promotion strategies are to define the role of the retailer or in-store as opposed
to outside media.

2. Couponing:

Sales promotion is sometimes defined as couponing. A coupon is a certificate that

provides a value that, when presented to a retailer, will offer a discount on the specific
product being purchased. There are approximately 300 billion coupons in distribution in the
United States, but only about 1 percent are actually redeemed.

The role of the media in providing coupon support is to find the most effective way
to distribute the coupons. This may be through a variety of media. Newspapers, magazines,
door-to-door, packages, and direct mail are all options for coupon distribution. There are
certain media vehicles whose sole function is to provide coupons. One of the biggest is
Valassis Corporation, which provides free-standing inserts (FSIs) containing coupons found
in your weekly newspaper.

A rapidly growing number of coupon distribution sites are already available on the
internet. Online shopping sites such as couponi. Com, couponibu. Com, and yahoopengutil.
Com are just a few of the large number of websites where consumers can obtain coupons.
The influence of digital coupons is growing. A study shows that shoppers use digital
coupons when planning to go shopping. Slightly more than a third of consumers have logged
onto their computers to access coupons, while one in five have visited brand websites for
specific coupons. And social media is becoming a couponing platform. Social media sites
have sprung up that are built around coupon sharing.

There are a number of coupon methods that involve in-store media. Many
supermarkets have interactive touchscreen kiosks where consumers can load their store
membership cards with electronic coupons. Coupon dispensers can be placed at the point of
purchase so that consumers can simply press a button and coupons will be available as they
purchase products.

For consumers to switch brands, Catalina marketing offers a coupon method where
you receive a coupon at checkout. The coupon is issued based on the category you
purchased but for a brand you did not purchase. For example, suppose you buy toothpaste.
You can then get a coupon at the checkout for Colgate once you have checked out.

Mobile couponing is a growing area where you use your mobile phone to scan the
bar codes of the products you buy. Based on your buying habits, you can be given coupons
that you can then scan at the checkout line, all using your phone. Apps for smartphones and
tablet devices help extend coupons to on-the-go consumers.
 Companies like Groupon offer a spin on discount coupons. Groupon promotes deep
discount coupons when a certain number of consumers agree to accept promotional coupons.
This crowd-sourced couponing is another way to generate consumer excitement for the
brand.

Incentive coupons are a large and complex part of sales promotion. There are media
specialists who focus solely on this area of media planning and buying. Each coupon method
has its pros and cons. And each has a number of cost components, which we will discuss
later in this chapter.

Salesmen offering free samples is a common marketing technique. You can't make it
through the cosmetics aisle of a department store or turn the corner at a grocery store
without bumping into someone offering to smell or taste something.

Sampling can be a very expensive way to incite someone to use your brand.
However, it is one of the most effective methods for new products as it offers consumers a
free trial in the hope of turning them into loyal customers.

Just like coupons, samples can be distributed through the mail, door-to-door, through
coupon advertisements, or personally in stores. Because sampling is so expensive, marketers
are always looking for targeted methods to ensure that their samples reach their primary
target market.

One method to do this is through polybagging in selected print media. In

polybagging, samples are sent in plastic bags along with a specific newspaper or magazine.
This allows marketers to focus their attention on the type of reader or geography or both. It
is also beneficial to the newspaper or magazine as it gives the reader something of value free
of cost.

Another method for sampling is to develop sampling events that are promoted by the
media. Examples include sponsoring a concert, or a race, or a community event where you
provide free samples to the audience. Sample events include organizing an event that is
relevant to your audience and then promoting it through the media. Although this type of
promotion can be logistically complicated, it offers brand exposure through the media along
with the opportunity to convert consumers into loyalists.

Event sampling programs are often driven by the media themselves. To encourage
 advertisers to buy their media, many media brands extend their reach by creating events. For
example, Life in the South has cooking school events that move from city to city within their
dominant circulation area. At the schools, they feature the brands that advertise, as well as
recipes for these brands and samples. Programs like this are offered by many different media
companies. They can be part of a paid media program for the sponsoring brand.

Sampling, like couponing, can be simple or complex. It can be done in-store or

through the media or by developing an event.

3. Celebrity Phone Media Connection:

Just as media outlets look to extend their brand through events, they offer advertisers
the opportunity to utilize their on-air or editorial talent. Giving you the opportunity to join
media properties and use their talents to promote your brand is an attractive method of sales
promotion.

One common way retailers or car dealerships experience short-term fun for
promotion is by scheduling radio stations for on-site promotional events. In radio parlance,
this is called "remote radio scheduling." These remotes, or events, feature one of the station's
on-air personalities providing prizes and other incentives to get listeners to stop by the local
retail store location for a limited-time event. These remotes usually have a short time limit,
so there is an incentive for consumers to act quickly.

Another variation on this theme is sponsoring a tour featuring, for example, a major
figure from the print media. A financial institution might sponsor a travel event where the
publisher of the Wall Street Journal speaks. This may be an invite-only event through which
the marketer uses the media personality as an inducement for customers to sample his brand.

As media planners work with media vehicles, they look not only for ways to find
suitable advertisements, but also how to use personalities in the media to further promote the
brand.

4. Raffle:

Sweepstakes offer prizes based on a chance description of an entrant's name. What a

great opportunity for an advertiser to stimulate some excitement about the brand and to build
 a database of potential buyers. Sweepstakes is an interesting term for games, contests, and
sweepstakes. Games are similar to scratch bets, but are usually conducted over a longer
period of time. Sweepstakes are one-time events, whereas games can be played over months.
The advantage of a game is that the consumer must continue to engage with the brand or
retailer, thus leading to repeat purchases or visits. A contest technically offers a prize based
on the skill of a trapper. Contests are another way to get customers to follow a brand.

The media plays a big role in sweepstakes, games, and contests. One example of
sweepstakes is a partnership between a marketer, Cost Plus World Market, and a media
outlet, Home & Garden Television (HGTV). The idea was to create a partnership where
HGTV would promote the "Cost Plus World Market and Spooktacular Handkerchief" as an
incentive to drive traffic to Cost Plus World Market during the pre-Halloween shopping
season. Viewers will register with cost plus world market and win prizes such as room
makeovers, free in-home consultations with an HGTV celebrity designer, and personal cost
plus world market shopping experiences. This is a great example of how retailers and media
work together for mutual benefit.

Contests are a popular way to engage with loyal consumers. Doritos once held a
contest for its customers to create a Super Bowl commercial. Winners had to produce their
television commercial, which aired during the game. All accounts submitted their ads to
Doritos as well as online video site YouTube. This resulted in millions of page views, which
increased the brand's popularity. Each entry received a coupon for Doritos that stimulated
short-term sales.

Undiaan is aggressively promoted by advertising to be effective. And sweep

programs must be well thought out from a retail perspective. It is important that
manufacturers, retailers and media all work together to ensure success.

5. Cost and Size:

There is nothing like a successful promotion to stimulate short-term sales of a brand.

However, the more successful you are at sales promotions, usually the more money you
spend. So sales promotions can be a double-edged sword. You want it to be successful, but
you want to make sure that you don't make it so successful that you can't afford it.
 It seems counterintuitive to question success. However, with sales promotion tactics,
you offer consumers a discount incentive to buy your product. That means you're not selling
it at full price. If you discount too much, you erode your profit margin. And you have to pay
the incentive dollars at the time of purchase. You may not get all your money from retailers
or consumers until later, so sales promotions can have a negative impact on short-term cash
flow.

In this example, there was media support for the $1.00 incentive coupon. Overall
media includes broadcast media, print media, and online media. The total paid media is
$4.5 million. Two million customers used the $1.00 discount, so the coupon redemption cost
was $2 million. The cost of processing the coupons from the retailer to the factory was
worth an additional 200,000 dollars. Marketers also offered $400,000 for the possibility of
misredeeming coupons. All told, the program cost $7.1 million, but the total media was only
$4.5 million.

The lesson in this example is that if the media planner had only beautified the media
paid for in the budget instead of estimating the results of the promotion, there would have
been a budget gap of 2.6 million dollars.

As a sales promotion program is developed, the media team must budget for media
while simultaneously estimating the success rate of the promotion. Success for a promotion
is usually measured by the number of consumers who take advantage of the offer. Future
promotion success is based on consumers returning to purchase the brand without the offer.

The cost of sales promotion includes a number of things beyond traditional paid
media. We just mentioned that one big aspect is the actual redemption rate or consumer
response. Other costs that may be included are talent fees if the plan uses celebrities from
the media. And there can be lawsuits to develop contest rules to ensure that it meets federal
guidelines, along with processing and handling hoops or logistics costs.

6. The future of Sales Promotion:

It's safe to say that marketers will always have a need to drive short-term sales. It's
equally safe to say that consumers are always receptive to discounts or deals. Both factors
combine to make sales promotions a growing force in the future.
 Just like direct response, sales promotion has been influenced by digital media and
the sophistication of database marketing. The future of sales promotion will be influenced by
the following trends.

7. Paper Coupon to Digital Coupon:

Even with the rapid sales of coupons on the internet, 90 percent of all coupons are
paper-based. The main obstacle for online couponing is redemption security for the
producers. With the increasing security on the internet, it will certainly increase faster than
printing coupons.

8. Mobile Phone Incentive:

Mobile couponing is the wave of the future. Imagine that while shopping you present
a coupon at the checkout stand without doing a prior internet search or clipping a coupon
from the newspaper. This can happen in the mobile couponing arena, where your phone
becomes an incentive magnet. Arm & Hammer has been running deals with coupons, using
a validation solution from mobile technology company SNIPP! Customers simply take a
photo of the original receipt showing the product they have purchased and submit it via text
or email. This triggers an automatic conversion, and within a week the consumer receives
the rebate.

9. Convergence:

Just as you see with sales promotion agency leaders, there is convergence in terms of
direct response and sales promotion. The ability to link incentives to in-store loyalty
programs is rapidly increasing. Developing incentives that are both new and loyal
customers, and tied to ongoing programs, is the wave of the future. App development is one
way to incorporate many of these programs. For example, lay potato chips wanted to engage
consumers regarding their brand. To do this, they developed a Facebook app where
consumers could share their ideas for new lay flavors. The creator of the winning chip flavor
 received $1 million.

10. Mega-Even:

With over 50 percent of the US using coupons and over 80 percent engaged in at
least one in-store loyalty program, it is difficult for marketers to break the established
buying cycle. This leads to mega-events, where marketers go over the top to deliver
experiences that lead to court. For example, JCPenney has been experimenting with popular
retail stores. These are short-term rental stores that generate excitement and court in the
market. Coca-Cola introduced a super large-scale social media game called "Coke Chase" In
this game, players of characters including cowboys, outlaws, and showgirls fight to reach the
Coke as they charge across a hot virtual desert. Consumers are in charge of the outcome of
the race through votes them. Consumers can also choose to "sabotage" their least favorite
team. To make this more interesting, the game is being played globally. The first 50,000
players to register to play will get a coupon for a free Coke. Large-scale events like this will
be the norm in the future.

32.3. Summary:

In short, a sales promotion is more than just a media buy. It is an encouragement to

buy products based on time-limited incentives. These incentive programs can take many
shapes and forms from simple couponing to elaborate sweeps. Sales promotions are an
important part of the marketing and media mix.

OWNERSHIP MEDIA:
When most people think of a media plan, their minds immediately go to buying
media or developing a big public relations or social media plan. However, for many brands,
you don't have to look any further than the brand itself for great media opportunities.

In fact, media planners should consider leveraging existing brand assets first before
considering other media. Why don't you take advantage of consumer touchpoints that you
already control? This is the best way to maximize cost efficiency. If you already have it, you
don't have to buy it back. Building a consumer-facing brand is all about developing and
building proprietary media assets.
 Media Ownership are items such as company or brand websites, packaging,
company employees, and events and sponsorships. These are assets that are developed by
the company or brand or are part of the business. Since all of these items or people touch
consumers, you can consider them media opportunities. Proprietary media falls into three
camps. There are physical assets, digital assets and created assets that include events and
sponsorships. Before we review each area, let's discuss the overall strengths and weaknesses
of these media areas.

33.1. ADVANTAGES/DISADVANTAGES OF MEDIA OWNERSHIP:

Owned media is an underappreciated area in media. However, it offers brands so

much promise. Unlike other media alternatives, you are not restricted to pre-existing
requirements. You have a blank canvas.

Media Ownership is powerful in building long-term relationships with existing

customers. That's the role that this area of media can play for brands. Owned media has
some real power to influence the lower end of brand purchasing - the areas of repurchase
and brand loyalty and advocacy. This role is supported by the advantages of owned media.

1) Owned media allows you to control the message. There are no other media filters or context,
so the message you deliver is a pure brand message.
2) Timely: belonging to the media can be very timely. You can respond to situations or
consumers at any time. You can be very topical and relevant.
3) Long lasting: proprietary media allows you to have a message that lasts. Unlike other media,
where you have a short message, you can keep the same message for a long period of time.
4) Personal: proprietary media can be very personal and intangible. You can develop different
messages for different targets. This offers the opportunity to be highly targeted and relevant
to your consumer base. You can talk to consumers on a one-to-one basis.
5) Cost-efficient: Owned media can be very cost-effective. Owned media usually does not
involve paying for media, so costs can be relatively low compared to other media options.

There are many benefits to developing a strong proprietary media portfolio. This
should be the goal of the majority of brands in today's crowded communications market.
While owned media offers many opportunities, it does have some downsides. Here are some
 disadvantages to consider.

1) Untrustworthy: media properties clearly provide company or branded messages. Consumers

know this so they may be skeptical of the message. This is especially true when brands are
directly involved with consumers. If the brand says one thing and its behavior is different,
there is potential for problems.
2) Time-consuming: media properties may not cost much in terms of coverage but they can be
time-consuming. This is especially true for manning digital assets such as Facebook pages
or Twitter feeds. Developing sustainable content takes time and dedicated people to do so.
3) Inconsistency: media owners can have multiple owners. Which can lead to a lack of
consistency in the brand voice. For example, a company website may report to the IT
director. A blog may report to the director of corporate communications. And a brand
microsite may be developed independently for a particular brand manager.

The more proprietary media, the more potential problems it can create. Most
problems with proprietary media can be summarized as departmental coordination
challenges. Getting everyone aligned and working together to develop a consistent brand
voice is a key challenge to maximizing proprietary media. While there may be challenges,
proprietary media offers brands some great opportunities. Let's discuss three broad areas of
owned media, starting with physical assets.

33.2. PHYSICAL ASSETS:

If you are marketing a consumer packaged brand, the package containing your brand
may be your biggest media asset. Think about it. Wouldn't you want a medium at the point
of sale that consumers see every day? Of course you do. The outside of the package is a
daily billboard that can be refreshed with new messages or offers. The inside of the package
offers an opportunity to reward and/or engage the buyer. It's a big medium. Simple
packaging changes can make a big difference in sales.

Imagine you are a fast food restaurant with a need to communicate a limited time
offer. You can buy television or radio airtime to communicate this or you can paint your
windows with messages. Which is cheaper? If you don't have the money for broad-based
media, a simple message in your window can help drive sales. Restaurants that use window
 messages have seen sales increase by up to 15 percent. Not bad for a little time

To introduce the environmental message of "Think Green", waste management used

a fleet of garbage trucks as rolling billboards. The message is sent to the side of the truck
that touches its staging environment. Instead of buying billboards in every market in North
America, waste management produced the message for their own fleet of trucks at a fraction
of the cost.

People can be media assets. Polo shirts emblazoned with the company logo worn by
your company's associates are an easy way to get name recognition in the market. Plus
associates can hand out flyers, business cards, or promotional items. All of these can be
effective consumer standards.

Physical assets from packaging to plants and trucks to people can all be part of an
effective media campaign. Make a list of all the physical assets your brand and/or company
has to offer and you will likely be amazed at the number of media options you already have
at your disposal.

33.3. DIGITAL ASSETS:

Almost every company has a website. Often your brand website is the face of the
brand. Company websites are used for all kinds of purposes. Typically, a company will tell
its story, profile its management, provide customer information and have a place for
consumers to contact them. If the company is publicly traded, it will have an investor
relations tab. Depending on your relationship with customers, your website can be very
important. For example, if you trade in a business-to-business environment, your website is
a very important new business tool. Case studies and white papers can be posted to the
website. Interactive videos can be used to demonstrate your company's expertise. Websites
can be built to tailor messages to a variety of potential needs.

If you are marketing a consumer brand, then you can use the company website for
corporate activities and rely on other digital assets to engage consumers. Social media
platforms such as Facebook and/or Twitter can be valuable consumer engagement platforms.
The rise of high-end food trucks is driven by Twitter. Food trucks use Twitter to announce
their lunch locations and engage with consumers over menu items. Facebook is an
engagement platform to offer incentives, games, and other interactive content. YouTube is
 another platform that provides opportunities for business marketers to tell their stories and
for consumer brands to provide content that falls outside of normal media channels.

Tablets and mobile apps provide brands with a mechanism to engage with consumers
on the go. The use of plates offers the opportunity for immersive experiences, while the use
of mobile phones can provide quick referrals or incentives for consumers. For example,
Nike offers a series of training apps for various sports such as soccer, tennis, basketball, and
track. These apps allow you to customize your workouts. The mobile apps allow users to
input realtime training information for feedback and analysis. Applications like these
provide an immersive experience that is not possible through other forms of media.

Digital Assets are becoming the mainstay of the brand experience. For consumers
who want to engage with brands, this is their opportunity. Digital Assets provide a way for
brands to develop sustainable and meaningful customer relationships.

33.4. MAKING ASSETS: EVENTS AND SPONSORSHIPS:

Sponsorships have become part of American popular culture, especially in

basketball. Many college teams refer to how many McDonald's all-Americans they have
recruited. McDonald also invests in Ronald McDonald houses, temporary housing for
parents with children hospitalized with severe medical conditions.

The Ronald McDonald House Foundation has homes across the country that help
parents stay close to their children during treatment. Just like McDonald's All American
program, the Ronald McDonald House is an example of a corporation that created a program
to help the community and to expand their brand.

Event creation and sponsorship is different from simply sponsoring a cause or sports
team: the event or sponsorship would not exist if the brand did not create it. If Capital One
decides not to sponsor the Orange Bowl (which is not a creation event), the orange bowl will
find another title sponsor. The same thing happens to causes like the Susan G. Komen Race
for the Cure. Every year, various sponsors associate themselves with this event.

Created events can be a big part of a business-to-business media plan. By creating

branded seminars or events that are relevant to the audience, a brand can improve its
 position in the market. Brands can create their own training or certification programs that
position the brand as an expert in the field. Google is famous for its google certification
program that provides extensive training in search engine marketing. Forecasters provide
certificate programs to become experts in their software. By providing these programs,
Google and/or Oracle become part of that customer's life. The value is not just limited to the
services they provide; they actually add value to their customers.

Created and sponsored events can be very valuable brand platforms. They allow
brands to gain publicity in a relevant context. Events and sponsorships can be extended
through other proprietary media channels.

33.5. SUMMARY:

Media ownership is an opportunity for a company or brand to stake a claim as the

owner of a media channel. In today's over-communicating world, having a strong
proprietary media program can separate the brand from its competitors. Whether it is
physical, digital, or created events and sponsorships, owned media should be at the forefront
of a brand's media plan.

REVENUE MEDIA:
Most advertising consists of paid placements, such as print ads, TV ads, or job ads.
These examples are referred to as paid media and are often considered a branch of
traditional advertising. Paid media can include many of the types of media placements
discussed in this book. Paid media targets prospects in an attempt to create brand awareness
or gain new customers; it has been the coin of the realm for decades in the advertising
industry. However, there are disadvantages to using only paid media in a campaign. Today,
consumers may ignore purely branded messages because they are already inundated with
advertising messages every day.

Earned media consists of branded messages given by others for your brand. While
social media has increased the visibility of earned media, it has always existed (for example,
through video newscasts on television and through captions in magazines). Now, however,
earned media refers to the mix of brands mentioned in news clips and shared on social media
sites such as Facebook, Twitter, YouTube, and Google+. Earned media is a natural
 outgrowth of advertising campaigns, events and content generated by brands, but it's not a
new concept: brands have always hired PR firms to reach out to the media to get them to
write stories about the brand. The new influencers are popular bloggers, individuals on
Facebook with a large number of friends, and tweeters with many followers. In addition,
positive reviews on social media sites like Yelp can be considered earned media. As many as
68 percent of Facebook users say they are likely to buy based on an earned media
recommendation from a Facebook friend (Ransom 2012).

Agencies at one time called this phenomenon a widespread campaign. For example,
the brand dove created a video of an artist sketching images of women based on their own
self-image, as well as images of the same women based on other people's impressions. The
video was featured on the homepage of Reddit, a news site where online users contribute.
The video was then featured on blogs and news sites and two days after it was posted, it was
featured on today's show. It is estimated that a successful campaign can convince up to 5
percent of viewers to share the campaign with people in their network. This is an example of
a strategy called flare and connect, which suggests that agencies should "light a flare" under
the media section and then create as many voices as possible online to promote the content.

34.1. PROS AND CONS OF MEDIA EARNINGS:

Earned media has a number of advantages. It is "free" in the sense that clients are not
"billed" for earned media placements. It is fairly transparent in that agencies and clients do
not have to rely on rating services to measure impact. Many consumers trust earned media
more than they trust traditional messaging. In particular, people trust the recommendations
of their friends and acquaintances more than traditional television advertising.

Although earned media does have some drawbacks. Earned social media relies on
consumer participation, and there is no guarantee that all consumers will like your brand all
the time. In addition, earned media has many hidden costs that clients are sometimes
challenged to recognize. Creation earned media requires time and effort and investment in
internal and external social media content.

Many agencies now employ earned media directors (EMDs). This individual helps
brands to strategically plan earned media campaigns; ensure extensive content reach through
paid media buys, free social distribution strategies; and measure the impact of earned media
on bottom-line sales and brand reach. An EMD's job is to guide the creation and execution
of earned media campaigns - and then provide metrics that demonstrate the impact of earned
media campaigns on the bottom line, sales, and marketing on the bottom line. Specifically,
they are tasked with finding all earned media channels to ensure campaigns achieve the
greatest impact. In media agencies, EMDs help clients better understand which social
platforms will generate the most campaign shares, and how to strategically use paid media to
increase the reach of earned media campaigns. In creative agencies, EMDs help drive the
full creative process from concept to execution, ensuring campaigns include the right social
triggers and content to generate maximum earned media. The EMD is actually a bridge
position between creative and media, as earned media becomes strategic in brand strategy.

One of the challenges of earned media is measuring the results. One way to measure
is quantity - for example, the number of Facebook fans and Twitter followers. This equates
to the reach of a brand. However, getting fans and followers to share content created by the
brand is indicative of the quality of the results. The people who share the content are the
ones most likely to influence others, making them more valuable fans and followers for the
brand.

There are several ways an earned media campaign can help audiences share content.
Brand messaging should be channel-appropriate, and the brand personality should come
through. If a branded message is a bit complex, for example, it may not work well on
Twitter and may work better on a blog or through video. Social or entertainment-oriented
brands may work best on social media like Facebook, as users are often there to socialize.
Other brands should also look for opportunities for their target audience. If members enjoy
contests, the brand should sponsor contests. If they like quizzes, brands should create fun
quizzes. Clearly, this requires a deep knowledge of the target that goes beyond simple
demographic information.

There should also be a plan to reward audience members who share information.
Most influential people don't become that way because they spam their friends with
information, and as such they are often very conscious of not creating chaos. Understand
what is and is not seen as shareable information. Think of the benefits that come from
sharing content. For example, people share their quiz results when the results are consistent
with their own self-image. If someone finds the content highly entertaining, their friends will
probably be entertained as well.
 It is important to note that there is a difference between messages that influence
consumers to interact with a brand and messages that are widely circulated. For example,
people are less likely to share that they have entered a sweepstake or given away a prize, as
sharing reduces their chances of winning. That is why many brands offer additional entries if
sweepstakes information is shared.

SUMMARY:

The bottom line is that an earned media plan, like every other media plan, should
have specific objectives in mind. Earned media should attract audiences to the brand, and
should complement, not replace or compete, with traditional messages. To that end, think
about the following areas when developing your earned media plan

1. Create a positioning statement that differentiates your business from others in the industry.
This will give you a competitive advantage and is a way to ensure that the content builds
refer back to what you want - both influential people and the friends and people they follow
- to think and feel.
2. Match the objectives of the earned media plan with the objectives of the overall media plan.
3. Work closely with others in the agency to develop content that actually provides solutions to
people and reflects its brand. A good media director will be able to track and assess the types
of content shared most frequently by their target members to have the best chance for the
message to go viral.
4.

GLOBAL PLANNING PERSPECTIVE:

The world has changed in recent decades in many ways: economically, politically
and environmentally. Therefore, it is no surprise that media usage has also changed globally.
Around the world, people are consuming more media than ever before. However, this
growth rate is not consistent across countries. Some countries, including the "BRIC" group
of Brazil, Russia, India, and China, are growing in terms of media usage (and subsequent
advertising expenditure) at a rate that far outpaces the growth rate in the United States.

Media Multitasking is evident on a global scale. The growth of multitasking using

multiple digital devices connects people around the world with media messages throughout
the day. Nearly 75 percent of media consumed globally is digital media. The use of print and
 television is shrinking worldwide, although both are still widely used by many people,
particularly those over the age of 35. Around the world, nearly half of Internet users are
under the age of 25. As these people grow older, they will conduct all their business on the
Internet; therefore, advertisers cannot ignore the impact of global digital usage. Even in
developing countries, mobile phone penetration quadruples every two or three years. Cell
phones are used in Africa and the Middle East as much as in North America and Japan, and
in some developing countries, they are the primary way to connect to the digital world.

35.1. GLOBAL AND INTERNATIONAL STRATEGY:

In 1983, a marketing professor named Ted Levitt suggested that people were
globally homosexualized despite entrenched cultural differences. He suggested that all
products be standardized so that the same product is sold worldwide to take advantage of
large economies of scale in both production (manufacturing the product) and distribution
(providing access to the product) in addition to economies of scale in developing and
producing a single worldwide campaign. This will result in low consumer prices and high
sales volumes and market shares for the brand. In addition, consumers will be exposed to a
consistent brand message wherever they go. Levitt's idea is considered a global strategy.
Global and international advertising is a communication strategy that companies use to drive
demand for goods and services in markets outside of their own.

However, the two terms, global and international, are not always used
interchangeably. International advertising strategies are designed to reflect cultural
differences and regional, national and local market preferences. For example, Pepsi uses the
phrase "Pepsi generation" in the US and "Pepsi revolution" in Brazil, choosing the most
appropriate word to express the "movement" in each place. In contrast, global advertising
embraces a standardization strategy in which advertising content is the same around the
world under the assumption that the whole world is a single entity, as in under Armor's "I
will" campaign.

Most brands marketed in multiple countries use an international strategy that

considers culturally unique aspects of ad execution. There are differences in how people
perceive themselves relative to others in the country and differences in economic structures
that affect what consumers buy and how often. Different countries have different laws about
 what can and cannot be advertised, and there are time and place restrictions on media
placement in some countries categories as well. For example, fast food advertising is banned
in Quebec, and toy advertising is banned in Greece from 7am to 10pm on television.
Cigarette advertising is banned in Africa, Hong Kong, Singapore, Australia, New Zealand,
and Canada, while cigarette advertising on television is banned in Europe and the United
States. Alcohol advertising is banned in Iceland, Norway, Sweden, Saudi Arabia, Libya,
Iraq, and some parts of India; in Brazil, the movie is banned between 8am and 8pm.

There are also differences in lifestyle that mandate different size plans depending on
the amount of storage space in the home: in the United States, the average single-family
home is over 2,100 square feet. In France, it is about 1,200 feet, and in the UK, less than 900
feet. To implement international strategies, agencies often have a disadvantage in all
countries where they advertise to ensure local flavor is infused into execution and that media
choices are optimized for each local market.

In comparison, global strategies are best in categories where the trend towards global
integration is strong and local cultural influences are weak, such as the consumer electronics
market. Agencies tend to focus campaign planning and execution among a team in a single
office.

35.2. GLOCAL ADVERTISING:

Many multinational marketers agree between global and international advertising,

known as glocal advertising, where brands "think globally and act locally." "Glocal
marketers standardize certain core elements of advertising strategy while incorporating local
cultural influences into ad execution. These strategies combine a global appeal that
recognizes consistent audience motivations - but with tactics that take into account local
nuances. Most media planning before the digital age was done based on localized analysis of
a country or market. Before the Internet, it was impossible for Americans to watch British
television commercials. Even today, there is no broadcast or print media with truly global
coverage. Although a publication may be available around the world, the content is only one
that is directed at one entity. As a result, global or international media planning still involves
many media planning and buying groups, in offices around the world, monitoring GRP
levels or planning the past and duration of advertisements in various media.
 What does this mean for media planning? In a global situation, there may be core
messages distributed through global media, along with country media plans to address local
media usage patterns. Large companies like Kraft and Unilever often consolidate global
media planning and buy all their brands with a single agency. However, with the
development of the Internet and digital media, brands are seeking to leverage local strengths
while achieving a level of consistency across regions and media platforms. Many agency
executives say that global planning is driven by brand globalization generated through
partnerships with global digital players such as Google, Microsoft, YouTube, and Facebook
(Bruell 2013). One media executive pointed out that if sites like YouTube could load video
content globally, money would flow to the Internet. For example, a global planning agency
might produce TV or digital content to run on YouTube and look for other media in market
after market or country after country. About 70 percent of traffic on YouTube now comes
from outside the United States, with 43 local sites currently in operation.

Digital technologies are globally popular among the young and educated. In nearly
every country surveyed as part of the Pew Center's survey, people under the age of 30 years
old and those with higher education are more likely to engage in social networking and use
smartphones. Mobile media is having a major impact on media planning and buying as more
and more people around the world own cell phones. Three-quarters or more of the
population in 18 of the 21 countries surveyed in the Pew Center poll said they owned a
mobile phone, while at least half said the same in Mexico (63 percent), India (56 percent),
and Pakistan (52 percent) (Pew Research 2012). The rise of mobile media around the world
suggests that media planners need to better understand how media habits differ not only by
country but also on a local scale; media usage can change over time depending on where
consumers are located.

Social media also affects media planning and buying. Around the world, more than
1.2 billion people participate in online social networks - often sand can be used by people
outside the US to get the exact same online offerings that people in the US have. Marketers
are struggling to find ways to manage and engage global audiences with their marketing
efforts on social media. Marketers have to make decisions about whether they will have a
single brand profile or multiple brand profiles for each country, and at the same time
maintain consistency in messaging, design, and overall voice for their brand. Pepsi's
audience in the US can easily find the Facebook page for Pepsi in Brazil. Social content and
communication should make sense to people in specific regions but should also match your
brand's original identity.

A global social media strategy requires more than just translating tweets into
different languages. Many marketers are surprised to find that the United States is not the
center of the social media universe. For example, users of social media sites around the
world have different preferences when it comes to platforms. Media planners need to find
out which social media channels are most used by the target audience, but it doesn't stop
there. Studies have shown that sites like Facebook may be popular in one country, while
examples of higher video or photo sharing via YouTube or Instagram may be the norm in
another. Some countries have social media sites like Facebook (such as Hyves in the
Netherlands, Gree in Japan, and Orkut in Brazil) that attract users, so when planning global
media the first step is to put aside the idea that Facebook is always the best site for
engagement. Understand which other social media sites are more appropriate for the
countries in which you are advertising.

People in different lands are likely to express themselves uniquely and share
different types of content. Expressing opinions about music and movies is popular around
the world, but politics, community issues and religion are particularly common in the Arab
world. For example, in Egypt and Tunisia, two countries at the heart of the Arab spring,
more than 60 percent of social network workers share their views on politics online. In
contrast, worldwide, only 34 percent of the media post their political opinions (Sonderman
2012).

In addition, there can be obvious and subtle differences in the way people from
different cultures connect to the internet. One example is that people in different countries
have different perspectives on scrolling through websites: Australians are much more likely
to scroll than Americans. In Germany, for example, Wikipedia is quite widespread, but
blogging is relatively inactive. Americans love Twitter, but the platform is not very popular
outside the US. The next most Twitter-using countries, Brazil and Japan, only have about
one-third as many users. Pinterest is seen as a social networking site that has a strong reach
amongst American women. However, in the UK, men outnumber women on the site.
Another photo-sharing site Instagram has seen the strongest growth in Singapore

Agency organizational structures tend to place global advertising media planners in

one headquarters, with local equipment around the world. A large agency may have more
than 100 local offices available for media assignment; others may have smaller groups of 10
to 20 centers around the globe responsible for specific regions. As a result, there are many
opportunities for global work for savvy media planners and buyers. Most importantly, media
planners who truly understand the concept of glocal media planning are most likely to
succeed.