Branded Content - INMA€¦ · Source: Digiday, WTF is Native Advertising Report, 2015. V5...
Transcript of Branded Content - INMA€¦ · Source: Digiday, WTF is Native Advertising Report, 2015. V5...
Branded Content This is Not Your Father's Advertorial
May 11, 2015
V5 150506_INMA Speech Large Format_v8_FA notes.pptx 1
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The Power of the Press
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Media in the center of a storm of turbulence, uncertainty...
Unpredictability
Industry rate of change
Household Products
Biotechnology
High
Low
Slow Fast
Aerospace & Defense
IT Services
Internet Software & Services
Internet & Catalog Retail
Insurance
Industrial Conglomerates
Life Sciences Tools & Services
Oil, Gas & Consumable FuelsOffice Electronics
Multi-Utilities
Multiline Retail
Metals & Mining
Media
Machinery
Leisure Equipment & ProductsIndependent Power & Energy
Household Durables
Real Estate Management
Real Estate Investment Trusts
Pharmaceuticals
Personal Products
Paper & Forest Products
Consumer FinanceConstruction Materials
Construction & Engineering
Computers & Peripherals
Communications Equipment
Commercial Services & Supplies
Commercial Banks
Chemicals
Capital Markets
Building Products
Wireless Telecommunication Services
Trading Companies & Distributors
Tobacco
Thrifts & Mortgage Finance
Textiles, Apparel & Luxury Goods
Specialty Retail
SoftwareSemiconductors
Road & Rail
Beverages
Automobiles
Auto Components
Airlines
Air Freight & Logistics
Hotels, Restaurants & Leisure
Health Care Technology
Health Care Providers & Services
Health Care Equipment & Supplies
Gas UtilitiesFood Products
Food & Staples Retailing
Energy Equipment & Services
Electronic Equipment & InstrumentsElectrical Equipment
Distributors
Electric Utilities
Diversified Telecommunications
Diversified Financial Services
Diversified Consumer Services
Containers & Packaging
Cost of
being wrong
Low
Medium
High
Note: Based on ordinal rankings along each dimension. Does not include Marine, Transportation Infrastructure, Water UtilitiesSource: BCG analysis
Media
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…translating into a need to transform the print business while growing digital
International newspaper
revenues flat over near term …
92
96
100
104
108
Total revenues, indexed to 2009 (=100)
2015e2014e20132012201120102009
0
50,000
100,000
150,000
200,000
2009 2014e2010 20122011 2013 2015e
Revenue Global, $ M
Print Revenue
Related Digital Platforms
… but this relies on digital revenues
comprising a larger share of the total
161 155
Source: PwC, BCG analysis
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Mature markets face a significant decline in print media circulation and advertising revenue
4.5-7.0
-9.6-3.1
-5.93.3
-9.6-9.1
-4.0-8.6
-3.2-2.2
3.81.0
10.01.8
31.1
-10.8-8.4
-6.4-5.1-5.1-4.8-3.9-3.5-3.3-3.2-2.9-1.7
0.00.80.9
3.14.4
Russia1United Kingdom
ItalySouth Korea1
FinlandTaiwan2
SwitzerlandNetherlands
GermanyUSA
FranceJapan
Mexico1BrazilIndia1
China1Indonesia
1. 2009-2012 CAGR; '13 not available 2. 2009-11 CAGR; 12-13 not availableSource: WAN IFRA WPT 2013 country-level reports; BCG analysis
Print circulation CAGR (%) Print advertising CAGR (%)
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Growth is good – S&P 1200, 1991-2008
9 10 9 9 8
5 5 4
103
2
01
3 1
112
3
0
10
20
30
40
Annual TSR change (%)
Growth
Margin
Multiple
Free Cash Flow
10 years
12
7 years
15
3
5 years
17
3 years
19
1 year
26
Source: Compustat, BCG ValueScience Center, 2008
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Growth comes mostly from places away from the core…while maintaining your profit margins
8
24
68
0
20
40
60
80
%
Maintain
margin
Dilute
margin
Improve
margin
3636
18
0
10
20
30
40
%
New
frontiers
AdjacenciesCore
reinvention
While investing for the future... ...Maintain or improve margins
1. 300 breakout growers screened from a group of 1600 companies based on their peer-beating sustained value creation record from 2000-2008
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Publishing companies have taken different approaches to growth and diversification
AdjacenciesCore New frontiers
Source: Press Reports, Company reports
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Branded Content: next big opportunity?
Size and
Attractiveness
Low High
Low
High
Right to Play/Ability
to Execute
Branded
Content
Source: BCG
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Digiday asks…
Source: Digiday, WTF is Native Advertising Report, 2015
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Branded Content Video
Source: BCG; Company websites and publications
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Branded content means a lot of different things to a lot of different people
Source: Wordle
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Branded content means a lot of different things to a lot of different people
Source: Wordle
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Bring some order to the chaos of "branded content"
Learn how consumers actually feel about and are interacting
with "branded content"
Discuss some opportunities for you – media companies—
to win in this space
What we're going to do today
1
2
3
Source: Company website and annual reports; press search; Capital IQ
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We believe branded content can be defined against two key elements
Content: desired consumer response Environment: relationship to setting
Source: BCG analysis
Has clearly articulated
consumer benefit
Exists in service of a
brand's objectives
It's primary purpose
is not to sell
Promotion is natural
and seamless
Promotion's creative is
contextually relevant
Promotion's tone, style, and
format is creatively aligned
with its setting
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Our synthesized definition for branded content
Source: BCG analysis
"Content … with a consumer benefit …
in an authentic environment … in the service of a brand"
V5 150506_INMA Speech Large Format_v8_FA notes.pptx 16
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Two key branded content choices—where and how
Product-related content
Wh
ere
co
nte
nt
exp
eri
en
ce o
ccu
rs
Category-related content General interest content tied
to brand equitiesContent distance from product
Existing
media
platform
Distinct
platform
developed
by brand
Existing
brand
platform
Source: BCG analysis
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Branded content campaigns mapped to the matrix
Source: BCG analysis; company websites
Product-related content Category-related content General interest content tied
to brand equities
Existing
media
platform
Distinct
platform
developed
by brand
Existing
brand
platform
Titleist's
online golf
ball
selection
quiz
Nike "The
Last Game"
on Nike.com
& YouTube
Nike brand
page
iPad /
Modern
Family
Upworthy
Promoted
Post for
Whole
Foods
Net-a-
Porter's
"The Edit"
magazine
GM's
interactive
recipe site
Tablespoon
.com
Red Bull
Media
House
Environ-
mentalism
on
Patagonia's
website
NY Times
for Orange
is the
New Black
iPad /
Modern
Family
Titleist's
online golf
ball
selection
quiz
GM's
interactive
recipe site
Tablespoon
.com
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"Native advertising" fits as a subset of branded content
Source: BCG analysis; company websitesSource: BCG analysis; company websites
Product-related content Category-related content General interest content tied
to brand equities
Existing
media
platform
Distinct
platform
developed
by brand
Existing
brand
platform
Titleist's
online golf
ball
selection
quiz
Nike "The
Last Game"
on Nike.com
& YouTube
Nike brand
page
iPad /
Modern
Family
Upworthy
Promoted
Post for
Whole
Foods
Net-a-
Porter's
"The Edit"
magazine
GM's
interactive
recipe site
Tablespoon
.com
Red Bull
Media
House
Environ-
mentalism
on
Patagonia's
website
NY Times
for Orange
is the
New Black
When distributed digitally,
often referred to as "native ads"
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Example: New York Times for Orange is the New Black
Source: Company websites; press reports
"The New York Times just
published what is probably the
best piece of sponsored
content you will find"
- Sam Petulla, MSNBC, on
his Twitter Feed
"The piece that turned
[branded content]
mainstream"
-Ad Age
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Example: Net-a-Porter's "The Edit" magazine
Source: Net a Porter Media Kit
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Example: Red Bull's best-in class multi-format global content ecosystem
Source: Company websites; press reports
TV
Red
Bull Air
Race
the
Game
Website
App
MusicMagazines
Games
Film
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Red Bull is no longer alone … other brands are building integrated media ecosystems
Source: Fast Company, the Story of Oreo; Fast Company: Oreo Tags Pop Culture; Mountain Dew Green Label
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Branded Content market expected to grow to $25B by 2019…
25
10
0
10
20
30
$B, US
2019E2014E
14-19
CAGR
Total spend (native and outsourced content costs); includes about $750M of
programmatic native in 2014
21%
Note: content spending only above the line; does not includebelow the line expenses such as salary and distributionSource: Business Insider, PQM Media; Press Releases, BCG analysis
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...with more growth and attention to come
3% 6%
Less
43%
26%
Significantly
more
More
21%
Same
amount
Unsure
70% of marketers are expecting to do
more branded content next year..."[Branded] Content marketing is the only
marketing left"
- Seth Godin, best selling author
and marketing expert
“Extending our messaging through content is a
great way for us to continue to convert our
customers from simply seeing a message to
considering our brand"
-Walter Frye, Director of Entertainment
Marketing & Sponsorships at American Express
Source: 2015 B2C Content Marketing Trends Content Marketing Institute/ Survey, 5,000 Marketer Respondents; The Content Council / Ad Age White Paper, 445 Marketer Respondents
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What we're going to do today
Bring some order to the chaos of "branded content"
Learn how consumers actually feel about and are interacting
with "branded content"
Discuss some opportunities for you – media companies—
to win in this space
1
2
3
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Creative
examples
we used
(U.S.
only)
Who we
spoke to
~1578 respondents ~1000 respondents ~1000 respondents ~1000 respondents
Net a Porter
Online
magazine
Red Bull drop
from space
NYT for
Vacheron
Watches
Our survey methodology
Source: Nationally representative online survey, March/April 2015, weight balanced for age, ethnicity, income
iPad / Modern
Family
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Five key survey findings
Vast majority of consumers have encountered, enjoy and seek branded content
Branded content positively impacts favorability and purchase ROI…
… but magnifies negative sentiment among those who dislike the brand
Consumers are giving media properties permission to play in branded content
Tone and style are critical elements to successful branded content..as like edit
A
B
C
D
E
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Have encountered
branded content
Have liked branded content
that they've encountered
Have proactively sought out
branded content
Awareness Favorability Demand
A
Vast majority of consumers have encountered, enjoy and seek branded content
BCG analysis. Awareness: Represents the portion of respondents who have encountered either product-level, category-level, or general interest branded content, or some combination thereof, at least once in the past year. Favorability: Represents the portion of respondents who have liked product-level, category-level, or general interest branded content, or a combination thereof, at least once in the past year. Demand: Represents the portion of respondents who have proactively sought out either product-level, category-level, or general interest branded content, or some combination thereof, at least once in the past year
88% 86% 65%
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… and indicate a greater likelihood of purchase
3
60
21
9100
75
0
50
25
% o
f re
spon
dents
100
7
+20%
Net increase in
purchase likelihood
Net increase in affinity for a brand
Branded content positively impacts favorability and purchase ROI...
Consumers like brands more as a result of branded content...
B
Source: BCG analysis; consumer survey, 1578 U.S. Respondents, March 2015
+21%
Much less than
Less than
Same amount as
More than
Much more than
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CLiked Indifferent Unfamiliar
However, it magnifies negative sentiment among consumers who dislike the brand
Source: BCG analysis; consumer survey, 1578 U.S. Respondents, 1000 UK, 1000 Germany, 1000 Italian Respondents, March/ April 2015
20%36%
8%22%
5%24%
25%42%
Disliked
-12%
-12%
-11%
1%
9%
-3%
-8%
3%
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Consumers are giving media companies permission to play in branded content...
-8
2
11121216
19
-15
0
15
30
Local print
newspaper
MagazineStandalone
website
National print
newspaper
News
website
%
Gaming
platform
Social media
After consuming branded content "I would trust this media setting more/less..."D
Source: BCG analysis, 1578 U.S. respondents, March 2015. Represents the average results of (1) general interest branded content (2) category-level branded content and (3) product-level branded content
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...with slightly lower receptivity in the U.K and Germany, and slightly higher in Italy
16
25
20
8
1
9
6
10
2
0
10
20
30%
Local print
newspaper
National
newspaper
News
website
Local print
newspaper
National
newspaper
News
website
Local print
newspaper
National
newspaper
News
website
D
Represents the average results of (1) general interest branded content (2) category-level branded content and (3) product-level branded content
Source: BCG analysis; consumer survey, 1578 U.S. Respondents, 1000 UK, 1000 Germany, 1000 Italian Respondents, March/ April 2015
After consuming branded content "I would trust this media setting more/less..."
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Tone and style are critical elements of branded content...just like edit
2
5
11
18
20
23
32
39
42
42
52
52
59
Long
Fiction
Features celebrities
Emotional
Non-Fiction / real-life
Interactive
Features real people
Educational
Short
Funny
Attractive design / layout
Credible
Thought-provoking
E "Attributes that would make you most likely to read/view content featuring [brand]"
Source: BCG analysis; consumer survey, 1578 U.S. Respondents, March 2015
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Five key survey findings
Vast majority of consumers have encountered, enjoy and seek branded content
Branded content positively impacts favorability and purchase ROI…
… but magnifies negative sentiment among those who dislike the brand
Consumers are giving media properties permission to play in branded content
Tone and style are critical elements to successful branded content..as like edit
A
B
C
D
E
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What we're going to do today
Source: Company website and annual reports; press search; Capital IQ
Bring some order to the chaos of "branded content"
Learn how consumers actually feel about and are interacting
with "branded content"
Discuss some opportunities for you – media companies—
to win in this space
1
2
3
V5 150506_INMA Speech Large Format_v8_FA notes.pptx 36
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Overview of opportunities for media companies
Native ad inventoryContent production for
MediaCo platforms
Core offering
New adjacent offerings
Full service branded
content offering
Native sales on
MediaCo-run private
exchanges
Content
management
services
A B
C D E
V5 150506_INMA Speech Large Format_v8_FA notes.pptx 37
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Bo
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A conclusion for consideration...