Tag Archives: RADIO

Creating a Well-Rounded Marketing Media Strategy

If you find yourself questioning the value of traditional media in your marketing strategy because:

  • Digital investment is generating lots of clicks to your website,
  • Your competition recently launched a web or mobile campaign,
  • And your inbox is flooded with promises from digital media vendors to deliver engaged consumers, premium content and targeting technologies at an unbelievably low cost?

The digital age has had an unquestionable positive impact on the ability of advertisers to zero in on consumers fitting their ideal demographic, geographic and psychographic profiles, with the proficiency of a star athelete like Lebron James or Eli Manning to hit their respective targets. But, just as you can’t put Eli Manning on the basketball court or put Lebron James on a football field and get the same results, you can’t expect digital media alone to accomplish all of the media goals and objectives in your marketing media strategy.

The purchase cycle
Big ticket purchases like cars, furniture, jewelry, and medical services are some of the most important retail investments affecting individuals—and the consumer doesn’t want to make a mistake.

Digital marketing is great at attracting audiences concerned with making the best decisions—people who are proactive about their purchasing decisions. And often, those who are proactive about searching are also proactive about engaging. This likelihood to engage means digital should be a core component of any well-balanced media plan. But marketers have a long purchase cycle to consider, during which awareness, information, reassurance and loyalty must be established and sustained to help the consumer confidently choose to invest in your brand above all others offering similar services. That’s where traditional media shines.

A good media strategy takes all kinds
Traditional media and their digital counterparts are vital media engines, and through the basic mechanics of media mix theory1, are inclined to fuel each other in the long purchase cycle.

Here’s a quick breakdown media mix theory, from Media Planning:

  • To reach people not reached with the first medium.
  • To provide additional repeat exposure in a less expensive, secondary medium after optimum reach is obtained in the first medium.
  • To leverage the intrinsic values of a medium to extend the creative effectiveness of the campaign (such as sight and sound on TV, intimate conversation on radio, long copy in print media and precise targeting in digital mediums).
  • Synergism, where an effect produced by the sum of the parts is greater than expected by adding together the individual components.

Traditional and digital media are equally and uniquely important in your media strategy mix and you build an effective media mix that contributes to profitable growth, that includes both traditional and digital media.

Here are the latest online video advertising numbers

December 29, 2011
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Though advertisers and agencies are often increasing their investments in digital video advertising at the expense of offline/traditional branding/advertising efforts, findings from DIGIDAY and Adap.tv suggest funding also comes at the expense of current display advertising budgets.

According to a November study, advertisers were more likely to fund their online video advertising efforts from offline channels such as print and broadcast TV than their agency counterparts. Advertisers most often planned to shift budget from print (41%), while 29% said they would take dollars from broadcast TV to fund their digital video advertising efforts. Just 24% planned to pull from display.

Agencies said boosts to online video budgets would most come at the expense of display (43%), indicating a general move away from less dynamic ad formats, such as banner ads, in favor of those with greater engagement potential.

Channels Their Clients Plan to Shift Budget from to Fund Online Video Ads According to Agencies and Advertisers in North America, 2010 & 2011 (% of respondents)

In addition, 39% of agencies said they would fund video from broadcast TV budgets. Though findings appear to suggest advertisers and agencies are shifting budgets away from TV toward video ads, more than half (56%) of respondents viewed online video as a direct complement to—and not a replacement for—their TV ad programs. Just 11% looked to online video to replace their TV ads, reported eMarketer.

In the past year, both advertisers and agencies have shifted their primary video advertising objectives from brand awareness to brand engagement, perhaps suggesting marketers are moving away from viewing digital video as a mere extension of TV ads and moving toward embracing online video for its ability to more directly engage viewers in a dynamic way.

By enabling video ads with social sharing and other calls to action, marketers can use digital video as a springboard to additional online engagement on social networks, their website and even mobile apps.

Online Video Ad Objectives According to Advertisers in North America, 2010 & 2011 (% of respondents)

Mobile is a growing area of interest for video advertisers, yet publisher offerings lag brand adoption. For example, 42% of advertisers and agencies have purchased iPhone-compatible video ads, yet only 35% of publishers supported such ads. Differences for Android video ads (31% vs. 28%, respectively) and iPad ads (41% vs. 35%) were similar.

TV, online to remain strong in 2012 slowdown

MagnaGlobal has released its updated 2011 US Media Owners Advertising Revenue Forecast, which remains unchanged at 1.6% growth, including the impact of political and Olympics (P&O) advertising. Magna still expects media suppliers to generate $173.5 billion of ad revenues in 2011. However, due to persistent weakness in the US economy, the 2012 growth forecast has been revised down from 4.8% to 2.9%–including P&O.  A slowdown in real personal consumption expenditures, manufacturing activity, and ongoing problems in the labor and housing markets all contribute to the revised outlook.

Excluding direct marketing components, the revenue growth of core media categories is estimated at 2.9% in 2011 and 4.3% in 2012.

For the Local Mass Media category (local Radio, local TV, local Newspapers and Outdoor media), declines are expected through the second half of 2011 and into 2012. They now expect this segment to decline -1.1% in 2011 and -0.4% in 2012, driven primarily by weakness in Newspapers (-5.5%), while Radio will be flat (-0.4%), and Outdoor should grow 4.2% in 2011 and 4.5% in 2012.

TV will be the fastest growing medium after Online in 2012, with ad revenues increasing 7.1% compared with Online’s 11.6%. Magna believes the 2012 Elections and the Summer Olympics will generate incremental revenue of $3.1 billion for television: $2.5 billion in political advertising (the highest spending ever, mostly on local broadcast television) and $633 million around the London Olympics (up 5.5% compared with Beijing 2008, and primarily fuelling National Broadcast TV revenues).

Under the current expectations of a slow-but-positive economic recovery in 2012, media suppliers’ advertising revenues will continue to recover from the severe recession of 2008-2009. MagnaGlobal expects revenues to reach $178.5 billion in 2012, which is still significantly less than the pre-recession level of 2007 ($206.1 billion).

Direct Media is exhibiting an increasing discrepancy between traditional activities (Directories and Direct Mail) and digital (Internet Yellow Pages, Paid Search, Lead Generation). Traditional direct media remains significant ($26.2 billion in 2011), but it is increasingly challenged by digital alternatives. Digital direct media, on the other hand, continues to outperform. Paid Search growth has accelerated this year to 21.7%, and is expected to maintain double-digit growth in 2012 (13.0%). Recent algorithm improvements have helped accelerate cost-per-click trends and have led brands to rely more heavily on search engine marketing and search engine optimization. So, for 2011, they now expect $31.1 billion in total online ad spend, up 19.5% vs. 2010.

Pandora Suffers Blow To Outlook From Clear Channel Competition

iHeartRadio – 11 million songs


Pandora- 990,000 songs 

Clear Channel has launched its iHeartRadio app and website in a direct assault on Pandora’s growth. Its new offering will let users create customized stations, a core feature at the center of Pandora’s business model. Pandora also competes with Sirius XM, the sole provider of satellite radio service.

Pandora’s stock has slid over 10% in the last two days in part due to this news. We take a quick look at the new service and acknowledge that this could have significant implications for Pandora’s valuation going forward.

Our price estimate for Pandora stands at $10.12, slightly below the market price.

 

Clear Channel’s Challenge

Pandora is a leader in Internet radio in the U.S. and stands out for its ability to offer a unique and personalized Internet radio experience to listeners. Clear Channel will challenge this uniqueness when it offers users the ability to create personalized stations from a song catalog that is 10 times the size of what Pandora offers and provides a range of artists that is 5 times bigger. [1] And all of this is included with no caps on listener hours and it’s advertisement-free at first.

Impact on Pandora?

If Clear Channel successfully markets the app and website, users may opt to go to Clear Channel instead of Pandora especially if its selection of music is indeed much larger than Pandora’s. We don’t know yet how this library stacks up without playing more with the app. However we note that many users don’t necessarily need to make a switch since they can enjoy both services for free, which is what we plan to do until we pick a favorite.


However for valuation purposes, if Clear Channel or other competitors takelistener hours away from Pandora, this will invariably impact Pandora’s valuation.

FBI Uses Social Media To Search for Fugitive Who Inspired “The Departed”

Many advertisers have included social media outreach in their campaigns for years, but Wednesday’s arrest of fugitive James “Whitey” Bulger illustrates how the FBI is also a convert to Facebook, Twitter and YouTube.

The law enforcement agency launched a campaign in 14 cities on Monday aiming to help agents catch Bulger, the Boston mobster who had been on the lam for 16 years and was the inspiration for Jack Nicholson’s character in the 2006 film The Departed. The campaign included outreach on Facebook, Twitter and YouTube. By Wednesday evening, the feds had their man: Bulger surrendered in Santa Monica, California. The FBI announced the arrest on Twitter:

Before we give too much credit to social media, though, it should be noted that Bulger was ultimately done in by a TV ad. The ad, which appears above and targets Bulger’s companion, Catherine Greig, was also placed on the FBI’s Facebook Page on Monday. It was also loaded to the agency’s YouTube Channeland referenced in its Twitter feed.

The FBI began using social media in 2009, when it set up shopon Facebook, Twitter and YouTube. “To reach out to the public, we need to be where people are—and we know tens of millions of people spend their time in social media sites,” said John Miller, head of FBI Public Affairs, in a statement at the time. Prior to that, a company called NIC, which was founded by a former law enforcement officer, introduced a Most Wanted iPhone app that displayed the agency’s “Most Wanted” list.

Wired-cable penetration has declined to a 21-year low

According to a TVB analysis of Nielsen Media Research data for May 2011, a record number of American TV households are receiving video programming via an alternate delivery system (ADS), mostly via direct broadcast satellite, while wired-cable penetration has declined to a 21-year low.

According to Nielsen NTI data, national ADS penetration hit 30.9% last month, an all-time high that is up from 30.3% in May 2010. Wired-cable penetration, on the other hand, declined to 60.6% in May 2011 from 61.1% in May 2010 he last time wired-cable penetration had been any lower was in November 1989.

Click here to view more, including the penetration levels for all 210 DMAs.

Media Trends: Where they are now, and what to expect

Vocus, a company specializing in PR Management has recently shared their research on the media world and what to expect this upcoming year. From television, newspaper, radio and magazine specialists, keep an eye out for some of these interesting trends coming up:

Magazines:

As we all know, mobile platforms are fast growing and we can expect 20% of Americans to have a tablet such as Nook, iPad, etc. by 2014. Therefore, magazine applications will begin to explode this year.

Newspapers:

Hundreds of online news sites have been launched recently. Patch.com by aol have launched hundreds of their news sites this past year. New York Times has started the implementation of Paywalls where subscribers pay for their individualized news source. Additionally, a newspaper has come out exclusively to iPad owners called “The Daily.” Newsroom cafes are a hot trend we have also seen, allowing interaction between reporters and readers.

Television:

There has been a rise in early morning newscasts as well as growth in social media updates on our TV news sources. Broadcasters are also offering more and more iTunes apps to bring their news straight to you. Another trend to look forward to is 3D television. Although limited to certain channels for now, we can expect an increase in these three-dimensional options to fly our way.

Radio:

Radio is going mobile! With apps, podcasts and Internet radio such as Pandora and Last FM, radio listening habits are increasing. We can continue to look forward to bringing our radio with us while we aren’t listening in our cars.

Time Spent on Internet Is Equal to TV

A new consumer survey from researcher  Forrester found that for the first year, the amount of time U.S. households spent watching TV and using the Internet is equal at 13 hours per week. This comes on the heels of research showing that younger consumers (18-30) already spent more time on the Web than watching TV. Now, people 31-44 are also spending more time online than with TV.

However, the amount of time spent watching TV has remained stable over the past five years. During that same time, however, time spent on the Web has risen 121 percent. The biggest losers in comparison to the Web are: radio (down 15 percent), newspapers (down 26 percent) and magazines (down 18 percent).
One important note: While the time spent figures are equal, over a third of the hours on the Web are for work purposes, while TV is nearly exclusively a leisure activity.

The figures are at the heart of a running debate about ad-budget allocation. One side is the proposition that marketer priorities are seriously out of whack, because their budgets don’t match up to consumer behavior.Venture capitalist Mary Meeker calls this a “$50 billion opportunity.” Another school of thought is that TV remains by far more important to brand building than the typical Internet options of display ads and search links.

One important note: While the time spent figures are equal, over a third of the hours on the Web are for work purposes, while TV is nearly exclusively a leisure activity.

Unsurprisingly, Forrester found e-commerce and social media the major drivers of growth over the last three years. E-commerce use rose from 37 percent to 60 percent, while social media went from 15 percent to 35 percent.

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4/24/10

CONTACT:

DAVID “DP” PRESCHEL

321-231-4488

DPPOWERHOUSE@GMAIL.COM

FOR IMMEDIATE RELEASE:

ORLANDO AD AGENCY SEARCH ENGINE QUERIES DIRECT USERS TO POWERHOUSE USA

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What this means for you is that we are not biased toward or limited to one specific marketing resource. We recommend what is needed not what we want to sell you. At Power House, we ensure that the marketing resources you currently are using are focused and concentrated. We then use our various resources and contacts to provide you with any additional service needed at our negotiated cost.

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New focus for movie marketing Internet, mobile grab more studio spending

Just a few short years ago, when studio marketers were looking to get the most bang for their buck, the basic questions were simple: How much can we spend on TV? And which of the old reliables — billboards, newspaper ads in top markets — get the rest?

Today, marketing mavens are still building their promo plans around TV, but the old reliables are anything but.

Marketing remains as shrouded in secrecy as the inner workings of the CIA. And while studios are cutting costs across the board — slashing talent salaries, reducing the number of movies they finance and produce, and laying off staffers — they fork over as much as ever on marketing. But where they’re spending that money is shifting.

If a studio thinks a film has a chance at grossing north of $150 million domestically, it will lay out $100 million or more for a worldwide campaign. For a film that’s hoping to gross $50 million or more domestically, a studio will spend $30 million-$40 million.

In the first two quarters of this year, $1.7 billion was spent to promote theatrical releases, a 1.2% gain vs. the same period in 2008, despite the economic crisis, according to Nielsen Monitor-Plus. (Other sectors, including automotive and pharmaceuticals, were down by double digits.)

Television and radio remain the cornerstones of pic marketing spends, gobbling up 60% to 70% of a promo campaign’s budget. But with auds dipping into everything from text messages to Facebook to TV and the Internet — often simultaneously — the studios are spreading their marketing moolah wider, across multiple venues, with multiple trailers, multiple approaches and specific demos in their sights.

There are no longer general-interest campaigns. Studio promo efforts have become more targeted, looking to engage core audiences in key demos more directly and actively.

And film marketers have revived an old Hollywood showman’s tradition, the roadshow, in which stars and filmmakers make stops in multiple cities around the globe to tubthump their upcoming releases.

While the money spent on digital marketing has increased, it’s almost surprising the totals aren’t higher. In 2002, an estimated 1% of a film’s marketing budget was allocated to digital. A few years later, that figure rose to 4.4%, according to a 2007 MPAA report. Today, 8%-12% of the marketing budget is devoted to new media, such as Internet and wireless promotions.

And while studios spent about 14% of a film’s marketing budget on newspaper ads in 2004, and 10% as recently as 2007, they now allocate maybe 4%, according to studio insiders.

It’s a sign of the times that for “Avatar,” perhaps the most expensive movie ever made and a major year-end release, 20th Century Fox devoted at least 10% to promotion on the Web, while buying just a single full-page ad in the Los Angeles Times and the New York Times on opening day — significant, but modest relative to the movie’s size and scope.

Similarly, Paramount last summer took out only one full-page ad on opening weekend in the New York Times and the Los Angeles Times for the debut of “Transformers: Revenge of the Fallen.” When rival studios saw that “Transformers” wasn’t hurt by having virtually no newspaper presence — the film grossed $200 million in its first five days — they took note. Warner Bros. quickly cut back on its print campaign for “Harry Potter and the Half Blood Prince,” which bowed two weeks later and grossed $158 million in its first five days.

The downward shift in ad placement has huge ramifications for big-city newspapers, already pinched by declining readership and the loss of other key advertisers. Not long ago, the usual practice was to take out full-page or two-page (double-truck) ads on the Sunday preceding a film’s bow, then on opening day, and once or twice each weekend for the next few weeks. The Friday editions of major newspapers were stuffed with pages and pages of movie ads.

Today, the number of print ads touting films has dwindled sharply, even in the mainstay New York Times (where a double-truck ad can cost $175,000, while a full-page ad goes for $95,000) and Los Angeles Times (where rates are somewhat less than at the Gray Lady).

There is one demo that studios do still rely on newspapers to reach: older adults. In particular, prestige titles that are review-driven continue to use newspaper ads. Recent examples include “Fantastic Mr. Fox” and “The Lovely Bones.”

“Newspapers aren’t a decision-making medium anymore, except for older audiences and movies that are really review-driven,” one studio topper says.

Other marketing traditions, like static movie billboards, also have become an endangered species or have been shifted to supplement online campaigns, as Sony did with “District 9.” Studios still devote 8% to 12% of their total marketing campaigns on outdoor, but the number used to be closer to 20%.

It’s a reflection of the increasingly cluttered media environment that building awareness of a movie now demands more than just delivering a message passively to prospective audiences. It’s now about engaging them more directly.

Besides allocating more marketing money to new areas, studios are using fresh takes on old ones, such as the revived practice of the “traveling roadshow.”

With its relaunch of the venerable “Star Trek” film franchise this past summer, Paramount faced a key hurdle: overseas audiences weren’t traditionally “Trek” fans.

So the studio rolled out high-profile advance screenings of the J.J. Abrams film both domestically and abroad. It created splashy showcases in various countries from Austria, Belgium, Holland and Spain to New Zealand, and brought the filmmakers and stars along to do local media interviews. Director Abrams even traveled to Kuwait to show the film to U.S. troops. Par also held a handful of official “Star Trek” premieres around the globe, in Australia, Germany, London and the U.S.

The costs of such ground efforts vary quite a bit, depending on the scope of the campaign and the movie’s heft.

With a lower-budget marketing effort, aiming for less-splashy events, as was the case with “Paranormal Activity,” each city can cost about $15,000. But on a bigger-scale film with more talent participants, such as “Star Trek,” the cost of each leg of a roadshow can run to $100,000 or more. That adds up to better than $1 million overall for such multicity tours, be they international or domestic.

The payoff, though, is evident: “Star Trek” grossed $127.7 million internationally, considered a huge victory. (Domestically, where the franchise has a loyal following, the pic cumed $257.3 million).

Warner Bros. faced an equally tough challenge in taking “The Hangover” overseas, as American comedy is often a tough sell. Drawing from the same playbook that Paramount did, Warners held special “Hangover” screenings around the globe in many of the same spots “Trek” visited. “Hangover” became the top grossing R-rated laffer of all time, both domestically and overseas.

Back in the U.S., the studios are doing more word-of-mouth screenings and local promos, such as cable TV campaigns — an effort that one marketing exec refers to as “geo-targeting.” Such focused approaches make more sense than spending big money on newspaper advertising and big network TV, says the exec.

For veterans of the marketing game, such localized efforts recall Hollywood’s roots back — way back — in the silent-film era; it’s the old mantra of “hit ’em where they live.” What is new is that studios — after years of false starts — are also finally learning how to harness the Internet and social networking to their advantage.

The 2009 box office saw an unusual number of films climb to unexpected heights, and several of them — including “Paranormal Activity,” “District 9” and “The Hangover” — were helped by innovative, viral marketing campaigns.

With “Paranormal Activity,” the microbudgeted horror film that DreamWorks picked up for $350,000, Par built buzz with midnight screenings in select markets and then sent fans to online site Eventful to petition for the pic to go wide when it hit 1 million requests.

The pic gradually widened with the slogan, “You demanded it!” reinforcing the idea that the audience was actively participating in the film’s bow. The pic has grossed $104.2 million domestically.

“There are so many ways for people to communicate instantaneously,” a Par exec says. “One person who comes to a screening tells lots of people about the movie, or (tweets) about it, or posts something.”

Such of word-of-mouth is invaluable, but its actual cost is relative to expectations. One exec estimates the marketing budget for “Paranormal Activity” at something less than $20 million. That’s very low considering other films’ marketing budgets and the horror pic’s eventual gross, but it’s pretty high considering that the pic’s production budget was a mere $11,000.

With its marketing campaign for sci-fi thriller “District 9” this past summer, Sony was the envy of rival marketing execs. The studio paired a barrage of creative content on the Internet with an innovative outdoor campaign. Cryptic billboards and bus-stop ads drove consumers to the film’s website. The website then gave partial explanations as it promoted the film. Audience members had to be versed in both the old and new marketing realms to piece the full concept together. “District 9,” an inexpensive pickup for the studio for which it spent roughly $20 million on marketing, turned into a phenom, grossing $115.6 million domestically.

While Internet ads do cost appreciably less than traditional media, studios are still spending as much as ever in two traditional areas: television ads and trailers.

Thursday-night television remains an oasis for movie ads because studios want to woo viewers to their Friday pic launches. Go-to shows on Thursday include “The Office” and “30 Rock,” both on NBC, and “CSI” on CBS.”CSI” is especially key for a movie that needs support from the middle of the country, vs. the two coasts.

Shows airing on other nights of the week also carry plenty of movie spots these days, and sports and reality programming get plenty of the ad action. According to a recent survey by AdAge, Fox’s upcoming season of “American Idol” is fetching $360,000 to $490,000 for a 30-second spot. That’s more even than NBC’s Sunday Night Football ($339,700) commands. Among scripted shows, ABC’s “Grey’s Anatomy” gets a price of $240,462 and ABC’s “Desperate Housewives,” $228,851.

“There are only a few places left that get a huge audience, like the Super Bowl. Marketing has become a more complicated science,” one studio topper says.

As for trailers, that staple of the moviegoing experience, they’re still the chief means by which a studio introduces a new film to the public. In 2007, 4% of a pic’s marketing budget went to trailers. The thinking is that if you’ve already got ’em in the seats, in a film state of mind, why not tout your upcoming pics as well?

At a minimum, there are two trailers cut for most movies: the “teaser” and the “payoff.” For some titles, there are three or four different trailers.

One former studio exec says studios are still spending too much on trailers, sometimes commissioning three to six companies to create separate trailers, then picking one or two of the best from among the choices. While studios used to produce trailers inhouse, trailer production is now routinely outsourced, with costs ranging between $100,000 and $300,000 to produce each one, according to estimates.

Such considerations of cost and impact will continue to confront the majors as they face increased pressure from their parent congloms to reconcile the bottom line.

Marketing spends must be accounted for in the quarter a film is released, even though box office returns might not come in until the following quarter. This can drag down an earnings report, and raise eyebrows up and down Wall Street.

“The landscape is shifting. We’re sort of betwixt and between,” one studio marketer laments. “While everyone is clearly focusing on the Internet, we’re just not at a place yet where we can do less television. That’s why it’s such a confusing, interesting and scary time.”