Understanding today’s Media Mix LandscapePresented by:Tom Yunt

Minnesota Coming Together: 2010 MNA/MFPA Convention

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The Media Landscape is Changing!

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• The Media Industry is attempting to move from monologue to dialogue.”

Mike Wagner White Rabbit Group

Des Moines, IA

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• “We have moved from the Ford to the Starbucks economic model.”

Mark J. PennAuthormicrotrends

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• Analysts forecast declining traditional media company revenue, market share, and profit margins…

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• And continued and aggressive market share competition and erosion form on-line media, as well as new and emerging interactive technologies…

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Good examples…

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• The internet exceeded radio in its share of global advertising spending in 2008!

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• It is predicted that the internet will overtake magazine advertising in its share of global advertising spending in 2010!

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• Private equity and investment firm Veronis Suhler Stevenson (VSS) predicts the US Internet will capture $61.98 billion and become the top ad medium in 2011!!!

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Largest percentage gains in 2007advertising spending:• Satellite Radio 12%• Mobile 100%• Video Game Advertising 90%• Cinema Advertising 15%

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• Branded Entertainment-Product Placement 35%

• Custom Publishing 14%

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In 1998 Newspapers had 32.4% of advertising

market share…

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By 2007, Newspaper advertising market share had declined to 20.4%!

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According to Nielsen, the biggest American Advertising declines in 2007 by category were…

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• Network Radio…down 8.5%• Local Newspapers…down 8%• National Newspapers…down

5.9%• B2B Magazines…down 5.7%• Local Magazines…down 5.2%• Sunday Supplements…down 4.7%

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• Where does that leave Newspapers and Traditional Media?

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Opportunity!

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If…

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• WE work harder, smarter, understand our business and that of our customers, place our customer in the priority position, know our competitors and their role in the media mix and accept the new media landscape!

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Keep in Mind…The customer BUYS three (3)

things:1.Their Rep (YOU!)2.An Idea (Spec Ads/Concepts)3.Results

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Newspapers…

The Media Mix: NewspapersStrengths:

• Local, local, local• Good level of market coverage• Baby Boomer’s media choice!$!$!$!$• Readership!• Coffee Table Effect…Pass Along

Readers• Media “purchased” by consumers• Portable/Flexible• Foundation of most local media mix

The Media Mix: NewspapersWeaknesses:

• Declining readership and circulation• Difficulty in reaching younger demos• Difficult media to purchase • Inconsistent reproduction quality• Heavily dependent upon

Automotive, Real Estate and Employment Advertising!

• Short life span

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Shoppers…

The Media Mix: ShoppersStrengths:

• Total market coverage/distribution• FREE!• Shopper denotes use of product! • Cost effective• Classified Advertising• Small, limited budget Advertisers• Coupons• Fast Food Advertisers!

The Media Mix: ShoppersWeaknesses:

• Free…uninvited into the household!• Ineffective to mid-to-upper demos• Often times, it’s to the “recycling

bin” • Frequency…once a week• Dependent upon small-to-medium

size advertisers!• Inability to select/target audience• Image

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Network Television…

The Media Mix: Network TVStrengths:

• Dynamic, attention-getting media!• Sight-Sound-Motion• Good at demonstrating product• Baby Boomer Media Choice!• Intrusive• Mass Coverage…like Newspapers!• Considered “sexy” by media buyers

and advertising agencies

The Media Mix: Network TVWeaknesses:

• Production costs, lead time• “Now you see it, now you don’t!”• Inconsistent production quality…

national versus locally produced spots!

• Channel Surfing!• Fragmented by Cable Television• Network television viewing in

decline, attempting to re-invent itself!

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Cable Television…

The Media Mix: Cable TVStrengths:

• Growing audience!• Local and regional advertisers• Ability to target viewers (i.e. ESPN)• High frequency to specific targeted

audience• Affordability compared to local

affiliate network television• Similar to buying radio advertising

The Media Mix: Cable TVWeaknesses:

• FRAGMENTATION!• Ever increasing number of cable

channel options• Production quality• Channel surfing• Limited local “avails”• “Now you see it, now you don’t.”

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Terrestrial Radio…

The Media Mix: RadioStrengths:

• Radio reaches almost everyone every week

• “Targeted” medium• Intrusive and local• Production costs are low, lead times

are short• Excels as a promotional media• Sound!

The Media Mix: RadioWeaknesses:

• Not a visual medium• Difficult to measure radio

advertising effectiveness!• Considered an entertainment

medium• “Station surfing”• Inability to target geographically• Fragmentation!

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Outdoor…

The Media Mix: OutdoorStrengths:

• Digital Billboards the New Rage• Outdoor advertising renaissance

underway• Broad audience reach• Superior graphic capability• Creative Revolution• Geographic targeting and flexibility• Tremendous “directional” medium

The Media Mix: OutdoorWeaknesses:

• Short exposure time…you just drove past the ad message at 70 mph!

• Limited message capability…seven (7) words or less!

• Affected by weather and environment conditions

• Low recall• Outdoor moratoriums – Local law

and ordinances commonplace

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Magazines…

The Media Mix: MagazinesStrengths:

• Growing younger audience readership!

• Gen X – Y – Millennial • Targeted to lifestyle/interests• Pass along readership• Coffee table effect • High quality reproduction/color

images• Portability

The Media Mix: MagazinesWeaknesses:

• Lengthy lead time, requires professional graphic design to be effective

• Static media• Ad clutter• Fragmentation of magazine

industry/readers• Typically, cost prohibitive to small

and medium size advertisers

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The Internet…

The Media Mix: InternetStrengths:

• It’s THE New Media• It’s a lifestyle and cultural phenomena

in itself!• Younger demos…Gen X – Y – Millennials

PLUS Baby Boomers and Older• Most everyone is curious, if not a web

user or consumer• Search!• e-Commerce: It’s the NEW Shopping

Mall

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Social Networking!!!

The Media Mix: InternetWeaknesses:

• How do WE monetize the web?• Fragmentation on steroids!• High speed Internet access• Privacy/Security• Web consumers highly dislike

Internet Advertising!• Declining click-through rates• Standardization and Measurability

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Questions???

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Thank You!