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2. The ideas in this presentation are taken from an article by Bob Garfield which appeared in Adage.com in April 2005 3. The conventional advertising model: Advertiser Media Agency Customer Focus on: Customer Satisfaction Customer Delight Customer Value Focus on: Customer Buying Behaviour Customer Motivations Messages Proposition Focus on: Customer Targeting Coverage Content 4. The emerging model: Customer Advertiser Exchange Value: Customer Needs Information Interrogation 5. The emerging model: Customer Advertiser Media Exchange Value: Customer Needs Information Interrogation Exchange Value: Entertain Inform Educate Access on demand 6. The emerging model: Customer Advertiser Media Network Groups Exchange Value: Customer Needs Information Interrogation Exchange Value: Entertain Inform Educate Access on demand Exchange Value: Information Opinions Experience 7. The emerging model: Customer Advertiser Media Network Groups Agency Exchange Value: Customer Needs Information Interrogation Exchange Value: Entertain Inform Educate Access on demand Exchange Value: Information Opinions Experience Exchange Value: ?????????? 8. US network TV audiences are declining by an average of 2% every year (Nielson) 9. The cost of reaching 1,000 households in US TV Prime Time rose from $7.64 in 1994 to $19.85 in 2004 10. Conventional media measures: Reach Frequency Exposure Cost per Thousand 11. What advertisers want to measure now: Outcomes Engagement Effectiveness 12. Video on DemandVsPrime Time TV 13. Network TV still delivers the largest audiences.for now TV is the last surviving conglomeration of human beings in the living room - Geoffrey Frost, chief marketing officer of Motorola. 14. Mass marketing via TV is losing cost-effectiveness Theres been research that the real cost of obtaining 30 seconds of the consumers attention is the same in 2005 as it was before the invention of television. - Shawn Burns, MD of Wunderman, Paris. 15. Conventional Media: Advertisers are paying more and more for fewer and fewer viewers. But what else can deliver broad-based audiences? 16. What will replace TV?
- Video on Demand
- Internet / Cable
17. Smaller total audiences = Fragmentation Opportunities to have a conversation with small clusters of consumers. 18. Consumers are no longer passive receivers. Consumers actively seek the content and information they want. 19. Large budget players are on the same playing field as small scale advertisers and content creators: Bloggers, podcasters, vloggers, virals 20. Broadcast TV Mass media Mass marketing Online Micro media Permission marketing 21. The big questions:
- How many have access?
- Who/How will create content?
- Who will want to watch content?
- Who will pay for content?
- Peer-2-Peer: Who will protect creator rights?
- As cost of online advertising rises, will cost advantage be eroded?
- Will content be suitable for advertising?
- Will social networks be suitable advertising media?
- Who is going to create and administer online content?
- Nothing is ready!
22. For further information: http://adage.com/adreview/post?article_id=143120 http://www.bobgarfield.net/adAge.php http://www.bobgarfield.net/video.php?video=video2 http://thechaosscenario.magnify.net/ http://adage.com/garfieldtheblog/ 23. Thank You Created by: Steve Raybould [email_address]