Marketing & Media Ecosystem 2010 Survey
-
Upload
victor-rodrigues -
Category
Business
-
view
1.787 -
download
0
description
Transcript of Marketing & Media Ecosystem 2010 Survey
2010MME
Marketing& MediaEcosystem 2010
February 25, 2008IAB Annual Meeting
Phoenix
Christopher VollmerLeader, US Media and EntertainmentBooz & Company
2010MME
75
37
25
13
127
0102030405060708090
100
Newspaper Radio BroadcastTV
Cable TV Online
Online Advertising Has Been On A Tear Online Advertising Has Been On A Tear Years to Reach $20B in Ad Revenue
(US Only)130
Source: Universal McCann, IAB Internet Advertising Report, Booz & Company Analysis
More Consumer Time
Addressing Marketers’desire for:– Accountability– Interactivity– Relevance
Growing even faster outside the US (e.g., UK)
2010MME
But The Industry Is At An Inflection Point But The Industry Is At An Inflection Point
Online Is No Longer Experimental –It’s Part Of The Media Mix
Massive Audience Fragmentation: More Choices than Ever for Consumers and Advertisers
Search and Ad Networks Have Been Key Growth Drivers
Video and Social Networks Undermonetized
Most Major Marketers Have Not Shifted “Significant” Dollars
2010MME
-100% -80% -60% -40% -20% 0% 20% 40% 60% 80% 100%
Marketers Get It: They Need to Catch Up Marketers Get It: They Need to Catch Up To Where The Consumer IsTo Where The Consumer Is
% of Respondents
DigitalMobilePREventsDirect MailTVPrintOut of HomeRadio
Increase SpendingDecrease Spending
Two-way
One-way
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
Marketers Taking Many of the Marketers Taking Many of the Necessary StepsNecessary Steps
Consumer Insights and Behavioral Targeting top Consumer Insights and Behavioral Targeting top their list of their list of ““must havemust have”” capabilitiescapabilities
They want to understand how consumers use digital They want to understand how consumers use digital for information, entertainment and communityfor information, entertainment and community
The importance of media is being elevated The importance of media is being elevated –– ““itit’’s the new creatives the new creative””
““LeadersLeaders”” are moving to put in place:are moving to put in place:–– Metrics, capabilities to assess the impact of digital mediaMetrics, capabilities to assess the impact of digital media–– Dashboards to measure ROIDashboards to measure ROI–– New positions to interface with media partnersNew positions to interface with media partners
2010MME
They Do However Need Help to Move FasterThey Do However Need Help to Move Faster
62%57%
52%
26%
0%
10%
20%
30%
40%
50%
60%
70%
Inability to measurethe effectiveness is
a barrier
Creative, strategicand media buyingcapabilities should
be rebundled
Partnerships withMedia companies
are important
Marketers believetheir organizations
are digital savvy
% o
f Res
pons
es
Marketer View of the Ecosystem
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
So, what do media companies need So, what do media companies need to do to accelerate this transitionto do to accelerate this transition……
HARDERHARDERFASTERFASTER
BETTERBETTERSTRONGERSTRONGER
2010MME
Five Themes Emerged From Our Media StudyFive Themes Emerged From Our Media Study
Digital Media DNADigital Media DNA
The Education & Metrics ImperativeThe Education & Metrics Imperative
Managing Digital ComplexityManaging Digital Complexity
The Ecosystem RedefinedThe Ecosystem Redefined
Value Through Consumer InsightValue Through Consumer Insight
2010MME
70%
56%45%
40%
84%
0%10%20%30%40%50%60%70%80%90%
100%
ContextualTargeting
BehavioralTargeting
PerformanceMarketing
E-mailMarketing
LeadGeneration
Digital Redefining Media Company Digital Redefining Media Company ““DNADNA””%
of R
espo
nden
ts
Media Services Offered Today
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
90%
82%
79%
78%
66%
40% 50% 60% 70% 80% 90% 100%% of Respondents
Increasing focus on talent, recruiting, and training
Restructuring our advertising sales team
Developing more sophisticated technical capabilities
Understanding what marketers want to measure
Changing the way we work with marketers
Many Priorities for Capability Building Many Priorities for Capability Building Key Changes to the Media Sales Organization in the Past 3 Years
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
73%
45%
40%
38%
36%
0% 20% 40% 60% 80%
Existing online advertisers shifting more of their overall ad budgets online
Existing online advertisers spending more online because they are spending more
overallNew national advertisers entering the
online ad marketer
Price increases for online inventory
New smaller or local advertisers entering the online ad market
% of Respondents
Big Focus On Growth Via Existing ClientsBig Focus On Growth Via Existing ClientsDrivers of Online Growth
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
39% 38%
86%
0%10%20%30%40%50%60%70%80%90%
100%
Top 200 National Advertisers
Top 50 National Advertisers
Local Advertisers
% o
f Res
pond
ents
More Headroom in Top 50 and LocalMore Headroom in Top 50 and LocalOnline Advertising Revenue is Generated From …
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
More Education, Better Metrics RequiredMore Education, Better Metrics RequiredPerceived Barriers to Online Spending
Lack of experience/education with new media platforms
Lack of senior organizational supportat the advertisers and agencies
Metrics are not comparable to traditional media
Insufficient ability to measure effectiveness
Complexity and cost of creating online campaigns
Perceived risk associated with consumer generated media
% of Respondents
59%
51%
44%
62%
45%
44%
81%
79%
74%
59%
49%
48%
0% 20% 40% 60% 80% 100%
Media Co’sMarketers
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
13%
87%
0%
20%
40%
60%
80%
100%%
of R
espo
nden
ts
Very Important/Important
Not Important
Marketer Education Is CriticalMarketer Education Is CriticalNeed for the Ad Sales Team to Educate Marketers and Agencies
70 % of Media Co’s Will Expand Their Education Capabilities By 2010
70 % of Media Co70 % of Media Co’’s Will Expand Their s Will Expand Their Education Capabilities By 2010 Education Capabilities By 2010
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
61%
68%
73%
75%
78%
98%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
% of Respondents
Lack of standardization inhibits spending
Need to understand what marketers want to measure
Relevant metrics vary by industry
Measurement/analytics are very important for an ad sales department
Lack of single metric is a major barrier
Marketers are unfamiliar with digital metrics
Greater Clarity Needed Around MetricsGreater Clarity Needed Around MetricsMedia Company Perspective on Metrics
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
94%
62%
57%
54%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Reach
Engagement
Action
ROI
Media CoMedia Co’’s Moving Beyond Reachs Moving Beyond Reach
% of Respondents
Metrics Currently Tracked
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
67%
67%
66%
63%
47%
0% 20% 40% 60%
Dramatically changes inventory availability and inventory management
Increases the need for supply chain management capabilities in media companies
Increases the need for new partnerships across the value chain
Significantly complicates the supply chain
% of Respondents
Concentration of online ad spending in the top few sites will decrease by 2010
More Ecosystem Complexity ExpectedMore Ecosystem Complexity ExpectedImpact of the Changing Media Landscape
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
Issues Go Beyond Inventory Supply Issues Go Beyond Inventory Supply
50%
66%
73%
0% 50% 100%
% of Respondents
Inventory management is a problem for your sites
currently
Inventory management challenges will get worse
as ad spend and demand increases
Labor spent on integrated solutions takes up a
disproportionate amount of sales staff time
Complexity Challenges: Today and Tomorrow
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
67%75%
0%
20%
40%
60%
80%
100%
70%61%
55%
76%
0%
20%
40%
60%
80%
100%
RichMedia
Video Display Search
% o
f Res
pond
ents
Behavioral targeting will gain significant
importance to marketers
Quality ofenvironment is as high as other media
% o
f Res
pond
ents
Confident Online Can Drive PriceConfident Online Can Drive PriceImportance of Targeting and
Quality of EnvironmentIncreased Prices Expected
For All Online Inventory
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
52% 52%
27%
52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
MediaCompanies
MediaPlanners
Comm.Planners
Agency of Record
Which Direct Partnerships Will Be More Important in the Future?
53% of 53% of mediamedia
Marketer Expectations Are ChangingMarketer Expectations Are ChangingMarketers Believe the Following Capabilities
Will Become More Important by 2010
respondents respondents expect to do more business expect to do more business
directly with marketersdirectly with marketers
% o
f Res
pond
ents
82%
80%
71%
66%
60%
59%
49%
0% 50% 100%
% of Respondents
Consumer Insights
Behavioral Targeting
Brand Strategy
Customer Marketing
Partnerships
PR
In-house digital production
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
65%
91%
63%
0% 20% 40% 60% 80% 100%
MediaMedia’’s Response: More Agencys Response: More Agency--like Serviceslike Services
We are rethinking relationships we have with the advertising agencies
The development of agency-like servicesby media companies is causing
friction with agencies
Our company provides agency like services to clients today
Media Perspectives Vis-à-vis Agencies
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
88%
88%
79%
76%
72%
70%
64%
66%
0% 20% 40% 60% 80% 100%
Campaign development and Idea generation
Target creative to the right audience
Creative development
Custom content
Cross platform integration and execution
Exclusive content
Consumer insights
ROI Tracking
% of Respondents
Media Offering Broader Range of ServicesMedia Offering Broader Range of ServicesMedia Ad Sales Team Provides the Following Services:
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
72% 69%
56%52%
12%
32%25% 25%
16% 17%
76%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
CreativeProduction
CreativeDevelopment
CommunicationsPlanning
MediaPlanning
BehavioralTargeting
ConsumerInsight
ResearchAgency of Record
Media Do See a Key Role for AgenciesMedia Do See a Key Role for AgenciesResponsibility For Each Of These Functions Lies With…
% o
f Res
pond
ents
Media Company
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
Media Strengthening Consumer Insights Media Strengthening Consumer Insights Media Companies Will Deliver
Consumer Insights by 2010Cutting Edge Consumer
Insights Require…
78%
76%
72%
71%
0% 50% 100%% of Respondents
Ability to track behavioral patterns
Ability to tie media behaviors to sales
Open channels for listening to customer
needs
Incorporating consumer insights into predictive
models
23%
77%
0%10%
20%30%40%
50%60%70%80%
90%100%
Yes No
% o
f Res
pond
ents
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
Using Insights To Create DifferentiationUsing Insights To Create DifferentiationRespondents Agree…
87%
77%
62%
56%
40% 50% 60% 70% 80% 90%
Providing strong consumer insights to marketers creates a competitive advantage
Media companies need to have more granular data on their consumers to avoid
commoditization of their ad inventory
Providing aggregated consumer data to advertisers is a major priority for my company
Media companies use their research function to customize studies for advertisers
% of Respondents
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
An Emerging Agenda for Digital Leadership An Emerging Agenda for Digital Leadership
Know What Drives Consumer BehaviorKnow What Drives Consumer Behavior555
TranslateTranslate Media Value into Marketer ROIMedia Value into Marketer ROI444
333 Provide Consultative Services for Key ClientsProvide Consultative Services for Key Clients
222
Emphasize OnEmphasize On--going Marketer Educationgoing Marketer Education111
Focus on Focus on the the Metrics Metrics thatthat Matter the Matter the MostMost
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
Digital LeadersDigital Leaders……
Invest to help marketers Invest to help marketers ““get itget it””
Link metrics to marketer brand/business objectivesLink metrics to marketer brand/business objectives
DonDon’’t just sell ad space t just sell ad space –– they sell solutionsthey sell solutions
Prove It Prove It ---- more likely to measure ROI and more likely to measure ROI and link media behavior to saleslink media behavior to sales
Can Turn Consumer Insight into Marketer Foresight Can Turn Consumer Insight into Marketer Foresight
Source: Marketing & Media Ecosystem 2010 survey and Booz & Company analysis
2010MME
Marketing& MediaEcosystem 2010