Mindshare 10 x10 trends for 2010 and 2011

!

100 POINTS YOU NEED TO KNOW ABOUT CONSUMERS, MEDIA AND DIGITAL IN 2011

DECEMBER 2010

TEN X TEN

M 10 x 10

! !

T R A N S P A R E N C Y T R I U M P H | B A C K T O T H E P A R I S H | O W N E R - L E S S | P R I C I N G P A N D E M O N I U M |C O N N E C T E D I R E L A N D | E - S T A T U S S T O R I E S & S Y M B O L S | M E D I A M A S H - U P S | T A R G E T I N G S O C I A L | L O C A T I O N , L O C A T I O N , L O C A T I O N | D E - T E C H I N G | T H E R I S E O F D S P S | Y O U R G R A N N Y O N F A C E B O O K | L O C A T I O N T O R E M A I N N I C H E | S M A R T P H O N E P E N E T R A T I O N T O H I T O N E M I L L I O N | D I G I T A L A D S P E N D T O R E A C H 2 0 % O F T O T A L | G R O U P O N T O B E C O M E P O P U L A R I N I R E L A N D | I A D W I L L B E T O O E X P E N S I V E F O R I R I S H M A R K E T | A P P S P O N S O R S H I P R E P L A C I N G A P P D E V E L O P M E N T | B B C I P L A Y E R W I L L L A U N C H I N I R E L A N D | A N D E V E N M O R E E M P H A S I S O N A C C O U N T A B I L I T Y | Y O U T U B E : M O R E T H A N F U N N Y C A T V I D E O S | F A C E B O O K : S E A R C H F O R Y O U R E X , B O S S O R M U M |H U N C H : Y O U R A N S W E R , I T R E C O M M E N D S | U R B A N S P O O N : F I N D L O C A L R E S T A U R A N T S | T A P T U : S E A R C H W H A T S T R E N D I N G I N R E A L - T I M E | W I K I H O O D : A P P G I V E S W I K I I N F O O N L O C A L I T Y |D A F T : S E A R C H F O R A N E W H O M E V I A G E O L O C A T I O N | S C A N L I F E : S C A N A B A R C O D E A N D C O M P A R E P R I C E S | S H A Z A M : D O N T K N O W T H E S O N G , S H A Z A M I T ! | G O L D E N P A G E S : Y E E O L D Y T R A D I T I O N A L | I P A D | B R I A N C O W E N | R U B B E R B A N D I T S | O V E R 3 M I L L I O N V I E W S O N Y O U T U B E |F A D E S T R E E T | I V O R C A L L E L L Y | T O Y O T A R E C A L L | T I G E R W O O D S | B R I T I S H E L E C T I O N S L E A D E R S D E B A T E | H U N K Y D O R Y S | R B S 6 N A T I O N S | R B S I N 5 3 % O F 1 9 , 9 0 3 M E N T I O N S O F 6 N A T I O N S | 1 . 4 M I L L I O N V I E W S O F L A T E L A T E T O Y S H O W H I G H E S T R A T I N G P R O G R A M M E I N 1 4 Y E A R S | L I V E S O A P S : C O R R I E A I R E D T H E F I R S T L I V E S O A P O N 2 N D D E C | 1 2 M I N U T E S O F A D V E R T S P E R H O U R | T V 3 I N C R E A S E D M I N T A G E T H I S Y E A R | L I V E T V A D V E R T S : L I V E D E N N Y A D V E R T O N C H R I S T M A S D A Y | S O C I A L V I E W I N G : I N C R E A S E I N T W E E T I N G W H I L E W A T C H I N G T E L L Y |8 M I L L I O N R T E P L A Y E R I M P R E S S I O N S P E R M O N T H : I N D E C E M B E R , V I E W E R S H I P O N L I N E P E A K E D | 9 | 1 0 P M I S B U S I E S T R T E P L A Y E R T I M E P E R I O D | V I E W E R S H I P O N L I N E W H I L E P E O P L E A R E A T H O M E : D I G I T A L T E R R E S T R I A L T V W I L L L A U N C H I N 2 0 1 1 , A N E W P R O M I S E D R O L L - O U T D A T E | 6 , 1 4 6 T V H O U R S B O U G H T B Y G R O U P M : 1 I N 4 A D V E R T S T V A D S A I R E D | 6 , 8 7 2 , 8 7 2 , 8 9 4 , 0 0 0 T I M E S : M I N D S H A R E T V S P O T V I E W E D I N 2 0 1 1 | 8 5 % D A I L Y L I S T E N E R S | O N A V E R A G E O V E R 1 . 3 M I L L I O N P E O P L E S T R E A M E D R T E R A D I O E V E R Y M O N T H | R A D I O S T A T I O N S I N I R E L A N D H A V E O V E R 3 0 0 , 0 0 0 F O L L O W E R S O N F A C E B O O K . | R E T A I L I S T H E T O P C A T E G O R Y O N R A D I O W I T H 2 2 % |T H E R E A R E 6 D I G I T A L R A D I O S T A T I O N S I N I R E L A N D | 1 2 % O F R A D I O L I S T E N E R S L I S T E N O N L I N E |O N A V E R A G E P E O P L E L I S T E N T O 3 . 9 H O U R S O F R A D I O P E R D A Y . | A L L O F T H E T O P 1 0 R A D I O S H O W S L O S T L I S T E N E R S I N 2 0 1 0 | L I S T E N E R S H I P O F L O C A L R A D I O I N C R E A S E D 8 % I N T H E L A S T Y E A R | M O R N I N G I R E L A N D I S S T I L L T H E M O S T L I S T E N E D T O S H O W I N T H E C O U N T R Y | O N A V E R A G E O V E R 1 . 3 M I L L I O N P E O P L E S T R E A M E D | R T E R A D I O E V E R Y M O N T H | R A D I O S T A T I O N S I N I R E L A N D H A V E O V E R 3 0 0 , 0 0 0 F O L L O W E R S O N F A C E B O O K . | R E T A I L I S T H E T O P C A T E G O R Y O N R A D I O W I T H 2 2 % | T H E R E A R E 6 D I G I T A L R A D I O S T A T I O N S I N I R E L A N D | 1 2 % O F R A D I O L I S T E N E R S L I S T E N O N L I N E | O N A V E R A G E P E O P L E L I S T E N T O 3 . 9 H O U R S O F R A D I O P E R D A Y . | A L L O F T H E T O P 1 0 R A D I O S H O W S L O S T L I S T E N E R S I N 2 0 1 0 | L I S T E N E R S H I P O F L O C A L R A D I O I N C R E A S E D 8 % I N T H E L A S T Y E A R | M O R N I N G I R E L A N D I S S T I L L T H E M O S T L I S T E N E D T O S H O W I N T H E C O U N T R Y | H A R R Y P O T T E R - L U A S H O G W A R T S E X P R E S S | S U R F B A G G A G E R E C L A I M | S M A R T I E S H A L L O W E ' E N | 3 M O B I L E | Q R C O D E S | R I V E R R O C K | C O C A C O L A | P O L O I N T E R A C T I V E | B O R D G I S | Q U A L I T Y S T R E E T | J A M E S O N | B R O A D S H E E T T O C O M P A C T | P A P E R T O D I G I T A L | D E C R E A S E I N C I R C U L A T I O N | N E W S P A P E R A P P S | I N C R E A S E D I N V E S T M E N T I N P R O D U C T O F F E R I N G | I R I S H C O N T E N T | C L O S U R E O F R E G I O N A L T I T L E S | I N C R E A S I N G L Y I N N O V A T I V E F O R M A T S | I N C R E A S E I N A D D E D V A L U E | N E W S P A P E R M E R G E R S | J U S T I N B I E B E R : N E V E R S A Y N E V E R | H A R R Y P O T T E R : A N D T H E D E A T H L Y H O L L O W S | T H E H A N G O V E R 2 | T R A N S F O R M E R S 3 | P I R A T E S O F T H E C A R I B B E A N 4 : O N S T R A N G E R T I D E S | S P Y K I D S 4 | T H E S M U R F S | J A M E S C A M E R O N P R E S E N T S S A N C T U M | P U S S I N B O O T S | A D V E N T U R E S O F T I N T I N

Dear colleagues,

Although its been challenging, at the close of 2010 we can look back and say with confidence that its been a very strong year for Mindshare. Our business has progressed in so many ways and Im very proud to be able to say that our offering now is far stronger than it was at the start of the year.

Our approach has been to listen to our clients and to understand the pressures they are under and therefore exactly what they need from their media partner. This has meant moving far beyond our traditional remit of media planning and buying and expanding our offering to create a real 21st century media company.

However, we must do this while still delivering excellence in our main business of media planning and buying. This is underpinned by exceptional client service and continued investment in this area whether through resource, systems or procedures is central to our success.

Our approach to trading The Exchange - within Mindshare is a key point of difference. We were the first agency to identify the trading similarities between TV and Digital and we remain the only agency who trades these two crucial media within the same team. We firmly believe this is the right solution as we move away from a TV only discussion and towards an Audio Visual approach where content is increasingly viewed on a number of different screens. Trading in this way also takes the disciplines and procedures on TV, which have been perfected over many years, and transfers them seamlessly to Digital making it a much more efficient medium for our clients to engage with.

Consumer Insight has been at the heart of this. The central idea has been to get much deeper under the skin of consumers and find the insights that will really help our clients businesses gain competitive advantages. In particular, our partnership with Sponge It has helped deliver this and has really given us an edge versus our competitive set. Whether with existing clients or in winning new business, research, and the consumer insights that it brings, has been crucial to the success that we have had.

The other key area of investment for Mindshare has been in Digital. Our key point of difference versus our competition in relation to Digital is that we passionately believe in and practice integration. Digital media is not consumed in a vacuum and therefore there is no justification for treating it differently to any other medium. This is the mistake that all of our competitors have made.

The real learnings for us have not come from the way in which people consume digital media per se, but from the way in which digital media consumption is influenced and driven by traditional media and vice versa.

We have made significant investments in people and systems in Digital but the fact that they sit at the heart of our business and that every planner is as well versed in Digital as they are in TV or Radio is the real key to our success.

The real strength of Mindshare however is in our client list and thats the thing that I am most proud of. Its the strongest possible testament to the strength of our offering.

Thank you very much for the business throughout 2010 and we look forward to a mutually prosperous 2011.

Bill Kinlay

!

Dynamics of the marketManaging Director, David Sneddon reviews

2010 and projects how a the dynamic relationship between clients brands, agency

and consumer should operate in 2011.

The last two years has taught everyone on both a personal and a business level a lot about themselves. The concept of living within ones means is an easy one to grasp, much harder to put into practice. I want to focus on how consumers, clients (brands) and agencies are going to react to this environment. Ireland has been pared back to the bone its all about survival of the fittest.

The dynamics of all business relationships are changing, and value, rather than just price, is the biggest single factor in that dynamic.

CONSUMER AND BRAND RELATIONSHIP:

Its a clich, but consumers are reacting by subjecting brands and organisations to the sort of scrutiny that they were never exposed to during the Celtic Tiger years. Whilst people are understandably gloomy about the future, they are now fully empowered to seek out bargains and reductions from everyone they deal with. One-fifth of the population used to be Bargain Hunters, however its now ubiquitous. On average, brands used to sell 20-30 percent on special deal now were seeing a huge range of brands selling over 75 percent of product on special deal; everything is included, from beer to yoghurt to cereals. Not every brand is going to survive this environment, and even some of those that do may be unrecognisable from the original entity.

Consumers will also continue to be attracted to brands that offer a value-infused quality experience. Its not going to be just about chopping prices. Marks & Spencer for one is having a great recession in Ireland. Yes, their prices are lower than they used to be, but they can still command a price premium as they offer reasonably priced indulgence. Just because people are feeling a little gloomy about the future, it doesnt mean that they want brands to behave gloomily too.

So, survival of the fittest for consumers in 2011 is about knowing that brands can do a lot more for them. The brands that adapt to this, will be the ones to prosper over the coming years.

M 10 x 10

SURVIVAL OF THE FITTEST

AGENCY AND BRAND RELATIONSHIP

As we have seen for the last two years, clients are seeking ways to make every single part of their marketing spend work as hard as possible. 2010 has seen advertisers recognise the enormous amount of time consumers are spending on-line. Investment has increased accordingly, but most advertisers are still playing a catch-up game. This is set to continue in 2011. Part of the reticence has undoubtedly been that consumers can subject brands to increased scrutiny in real time through digital channels. 2011 is set to see more brands confront this head on, with more real time customer service bring offered. Embracing this requires a new type of marketing manager, able to react to trends and opportunities at literally a moments notice.

Its also become apparent to many clients that, when Tesco knows more about your customers than you do, its time to develop a direct relationship with those consumers. Clients must deal with the massive amounts of data available to them in order to be able to build these relationships. Again, its a new type of marketing manager thats going to be required to build these sorts of relationships.

So, survival of the fittest in 2011 for clients/businesses is going to be about speed of reaction with clever, synched-in data.

BRAND AND AGENCY RELATIONSHIP

Agencies have to react to how both consumers and clients are feeling. We have to adapt our offering accordingly. We have to remain fresh and relevant and more than anything, we must add value. Our landscape has changed too, companies like Google and Facebook make it very easy to do business direct without the need for any agency involvement at all. As an industry, particularly in media, we need to be more things, to more people. Our challenge is to marry our buying-based remuneration model with a consultancy, value-add model. Otherwise, we will be completely superseded by 2015.

Thats why at Mindshare we have added a market research wing, via our partnership with Sponge It. Its also why weve added a social media tracking element to our business, via our relationship with Stephen OLeary of OLeary Analytics.

And its why we are investing more time and energy in content creation.

Its also why we have invested heavily in our digital offering. As you read through this piece, you will be struck by how digital has become all pervasive. It can no longer be thought of as a medium in isolation, but rather its the intersection of all media channels. It truly is at the heart of media planning in the future, and its also at the heart of Mindshare.

By the way, we certainly havent forgotten that buying media cheaply and effectively is a large part of our appeal. There is an expectation that media prices are once again going to fall sharply in 2011, particularly on TV. Three months ago, our view was that media prices would stabilise and possibly even increase in 2011. Now we think the opposite. With the exception of Google Search, there is likely to be a high single digit fall in media spends. We are feeling this downward pressure from international clients in particular they have been watching the news about Ireland in the UK, France, the US and are reacting accordingly.

So, survival of the fittest for us at Mindshare means aligning your needs even more closely to our capabilities. It also means not forgetting about price but adding on useful services that people are increasingly asking for.

[email protected]

M 10 x 10

Consumers

ClientsBrandsAgency

Added Value

Our challenge is to marry our buying-

based remuneration model with a consultancy,

value-add model

The Importance of PlanningAs the marketing changes with the tough

times, Mark James, Planning Director, outlines themes that will shape the future for

communication in the Attention Economy.

Our 'bad' economy wakes us up in the morning and bids us good night. But is it really that bad?

IBEC recently highlighted the Ireland which is home to eight out of the top ten pharmaceutical and technology companies. The country from which 1.4 trillion of funds are managed, and the one that exports more beef than any other European country. That Ireland which is one of the worlds biggest exporters of software, the second biggest exporter of medical devices in Europe and the country responsible for managing half the worlds leased aircraft.

And if we look closer to home, in the marketing industry, then as Irish consumers we still buy more branded goods than nearly all our European neighbours, and were home to two of the new global utility companies, Google and Facebook.

So will the real Irish economy please stand up?

There isn't just one.

We live and operate in a number of different economies - the ones we traditionally recognise the Irish, global, European and the U.S. economy. Made

up of thickets of information about jobs, manufacturing, output, property, banking and investment. These are the economies which politicians think they can regulate. Then there are the other economies.

The grey economy which saw Irish people exchange tax-free goods to the value of nearly 1bn just via Buy & Sell in 2009, set to repeat in 2010. The Irish euros spent in Northern Ireland. The unmeasured e-commerce economy which sees tens of millions going offshore to buy goods online.

Here in Mindshare, the marketing economy is our lifeblood. The amount of money spent on the placement, promotion and selling of goods and services to Irish consumers.

In simple terms, our job is about the measurement of consumer time, the cost of that time, and the distribution of that time. We are value champions and our job is to secure more of that time for less money than any other company in the Irish market.

But as we have discussed above, these days things just arent that simple. We dont just buy media we plan it before we buy it, by measuring and navigating the attitudes, motivations and desires of Irish consumers.

As media planners, we know that the real long-term value that we can give you, our clients, is understanding and evaluating the ATTENTION ECONOMY.

Theres an awful lot of media out there delivering commercial messages which are fighting for the attention of the individual. We need to find and target consumer priorities, not just follow the mechanical obsessions of media auditors. When was the last time you had a conversation with somebody from outside our business about the position of a TV commercial in an ad break?

M 10 x 10

ATTENTION ECONOMY

In this years TEN X TEN report we cover 100 points which we believe will affect the attention of Irish consumers and the attention economy that they inhabit. Each of the points fall under the following themes which makes media planning, and its value for brands, even more relevant than it ever was.

VALUE OF CONSUMER INSIGHTS

In Ireland, more so now than ever, we often lack the local research to give us the insight into the real vital issues which affect consumers lives and how they use or consume media. How do they make buying decisions? What are the key influencing factors? How do consumers use digital media for information, entertainment and community?

Our research partnership with Sponge It allows us to answer all these questions and more by conducting our own in-depth research into those key issues, and using the findings to further improve our media planning.

THE CHANGING DNA OF THE MARKETING BUSINESS

Like it or not, the recession and e-commerce are changing the way that people choose and buy many products and services, and this change will only accelerate in 2011.

FINER TARGETING THROUGH DIGITAL

There are new opportunities to direct more relevant messages to consumers based on their site behaviour which sites they like visiting and what content they view when they are on those sites.

MAKING YOUR OWN MEDIA

From apps on phones and Facebook to 360 events, utility media can add something everyday to peoples lives are a great way of getting your brand closer to

their hearts and wallets.

CONTENT

With a large proportion of Irish web traffic going to international sites (about 65 percent), we desperately need more high quality and robust Irish content. Given the size of the Irish market, and the l imited r esources o f the t r ad i t i ona l indigenous media owners, funding content thats worth consuming is a real and growing opportunities for advertisers in Ireland

GOING DARK DOESNT WORK

Thats what the Americans call it w h e n y o u s t o p a d v e r t i s i n g /c o m m u n i c a t i n g w i t h y o u r consumers. 2011, for al l our continuing economic woes, will see a greater realisation that if you dont invest media money into your brands, or ignore consumers, then

they will start ignoring you. Equity scores will fall, but even worse theyll find a new brand partner.

DONT STOP

As a development of the point above, a phrase that began life in paid-for search will permeate into other parts of the online and offline media world the always on campaign. People may want to engage with your brand at any time and you need to be ready to reciprocate. Added to which there is always an empty box to replace or a policy to renew. This

constant consumer need, coupled with fantastic value in media prices, offers opportunities to gain real competitive advantage here.

DATA WITH MEANING

Generating data is relatively easy, but producing quality data that can provide insights into consumer behaviour, and inform marketing investment decisions isnt. Campaign metrics are key deciding what they are at the beginning, and analysing them properly at the end will provide essential learnings to our clients. How we organise that data is critical, and at Mindshare we have a number of dashboard tools for sifting and managing the data which then help us to discover insights.

THE AGE OF THREE SCREENS

While there are still sofas there will still be TVs, but we will continue to consume more and more video content (and in longer bursts) via our PCs, and increasingly our mobile phones.

In Mindshare we have recognised this in the way we organise our business. For the last two years, the team of people we use to call TV Buyers have been called The Exchange and are responsible for buying traditional TV as well as Digital media. For 2011 we will see a significant growth in advertising via video-on-demand, which will not just improve the quality of the opportunity-to-see but turn it into the opportunity-to-interact.

THIS IS THE NEW NORMAL BASELINE

Digital will continue to grow exponentially, but some media, like press may not show growth again. There will be winners and losers with individual growth opportunities, but the media map is changing as we speak.

[email protected]

M 10 x 10

our job is about the

measurement of consumer

time

Media trading in 2011Nick Slaymaker, Head of the Exchange

outlines the key trading areas which Mindshare are prepared to manage in 2011

MEDIA LANDSCAPE

In 2010 the doom mongers were proved largely right when the market contracted by around ten percent. Within this, TV, display and search fared rather better being up 2%, 18%, and 50% respectively showing that all parts of the market do not move in the same direction. On top of this, the lack of live data by media channel and media owner makes it harder to take the pulse of the market in real-time. This makes scale even more important than ever before, not only does it provide greater leverage, as overall volume declines, it allows a greater sense of the true size of the market, due to the amount of data it provides. Mindshare, as the largest trader within GroupM (which accounts for 30% of the market), is uniquely positioned, to identify and exploit opportunities.

HOW TO APPROACH THE MARKET

Whilst we wont go into specific trading tactics here, as they are bespoke to every client, there are several truisms that will remain relevant in 2011. There is no more money; any media owner expecting organic growth is dreaming. There is more media available than ever before; digital growth has not seen budgets organically rise but rather a shift of budget from traditional media. There is more TV minutage from TV3 and more channels in general.

The contraction in media budgets mean that in every media, supply outweighs demand. All media owners will be fighting for share of media channel and share of media owner within these channels.

M 10 x 10

PLAYING THE MARKET

In a falling market you either trade short term or you construct deals that allow the benefits of short term trading and hold none of the pitfalls. This makes the initial conversations harder but media owner and client alike will benefit from certainty of budget and certainty of market value. Mindshare will work with all media owners to make these best of both world deals work. However any media owner trying to hold rates from 2010 should quickly reassess; agencies and clients will not sleep walk through a falling market as many people did in 2009.

THE RISE OF DIGITAL

Ireland has lagged behind other European countries in terms of the proportion of budget put in to digital. Compared with the European average, Ireland invests significantly less online and therefore the head room to grow is huge.

With aggressive fixed line broadband competition and continuing roll-out of mobile coverage to rural areas, the penetration issue should start to go away.

Globally Mindshare now employs more digitally focused staff than traditional media focused staff. This is a sign of the future and Ireland is moving quickly in the same direction.

We want to focus on the key change in 2011/2012 - the rise of the Demand Side Platform (DSP). These have arisen because of the near infinite supply of digital inventory and allow the collection and analysis of behavioural, and contextual consumer data.

To this end were making huge investments into Targ.ad - our own DSP. This will enable us to de-dupe, frequency cap and retarget with a new level of granularity.

We intend to open up the benefits of optimisation to a broader range of inventory and crucially we will hold data on the clients behalf, taking out an uncontracted third party. DSPs will start slowly but once the benefits are seen will form a key part of digital trading going forward.

We believe the overall market will contract next year, pushed even further by the macro economic factors that are driving down the local economy. The media market place will fall into this overall contraction and for the third year, in a row value, driven by imbalance between supply and demand, will be key.

How to harness that value will be down to intelligent deal construction on all media. Powered by GroupM, Mindshare will be best placed to take advantage of the falling market. Online will continue to grow and the management of data and proper use of digital will come to the fore as the medium becomes central to, rather than the last line on, the plan.

[email protected]

M 10 x 10

any media owner trying to hold rates from 2010 should

quickly reassess

Digital at the core of planningOur Head of Digital, Ciarn Norris takes a look at key areas which will have a major

impact on digital marketing in 2011.

The year of mobile, the year of social,

the year of location,the year of Twitter

It seems that digital marketers are never happier than when theyre predicting that one particular trend will dominate the coming twelve months. As can be seen from the fact that people have been predicting the year of mobile for the last decade, theyre very often wrong. And the truth is that a year is never dominated by a single trend, rather a year is often made up of 365 little stories, each of which can

impact everything from marketing to retail, from publishing to travel, from politics to finance.

So, what will be the stories of 2011?

We think there will be five that marketers in Ireland will need to be aware of, and prepared for.

SEARCH

Google is still the place where most people begin their web-journeys: whether its to type in a URL instead of using a browser, to find quickly a useless piece of trivia or the best deal for a mortgage, Google is the web as far as many people are concerned. This is unlikely to change in 2011, but it will continue to evolve: the launch of the Microsoft/Yahoo alliance may finally bring some much needed competition to a dangerously monopolised sector, whilst the continued rise of social media, in all its forms, means that brands will need to think about how they optimise a lot more than just the words on their homepage.

SOCIAL:

If 2010 belonged to anyone, it was Facebook. From hitting 600 million global users (a rise of 100% YOY) to garnering Golden Globe nominations for the movie made about founder Mark Zuckerberg (they could probably have done without that), they were everywhere. 2011 is likely to see them hit the magic one billion in terms of members, several times that in terms of advertising dollars earned, and also see them become as ubiquitous as Google. Their rising status as the default log-in for millions of sites, and their dominance of the mobile web, will mean that any brand that hasnt worked out how to make use of the platform already, will need to do so and quickly.

M 10 x 10

IRELAND IS CONNECTED

MOBILE

Predictions abound that smart-phones will outnumber desktop computers within one-two years. Certainly, there are already more phones in Ireland than there are people (even if many of them are not smartphones). But whilst Apples iPhone (and iPad) garner all the headlines, savvy marketers would be wise to remember that not everyone has one, or even wants one. Android is a rising force and even beyond that, integrating simple things like SMS into offline marketing is nowhere near as prevalent as it should be, something that really needs to change in the next twelve months.

CONTENT

One of the most oft-repeated clichs of the web, is that content is king, and whilst this has never been entirely true, it is probably more so now than ever before. Though the rise of the social web has undoubtedly seen a change in the way that people

consume content, it

hasnt changed the type of content

people enjoy. People still w a n t w e l l p r o d u c e d ,

professional content, they just want to be able to share it. An opportunity is therefore arising for brands to step into the gaps left by penniless media owners and produce

content designed to be shared. The rise of VoD also means that the web can now be bundled with TV deals, bringing greater targeting and efficiencies.

DATA

If it has done one thing more than any other, the web has created data like no other invention before it. The average web user creates thousands of individual pieces of data every week, from status updates on Facebook, to locations searched for on Google Maps, to products bought on Amazon. Compiling, filtering and making use of this data is one of the biggest opportunities, and challenges, for brands. The evolution of display into something more closely resembling search, where inventory is bought

with an auction model, and based on deeper targeting, is one area where marketers are likely to benefit from this data glut. As Demand Side Platforms allow targeting by audience, rather than context, the value of this data is only going to increase, assuming that is that government bodies dont decide that all this data isnt in the consumers interests.

Of course, it could well be that none of these predictions turns out to be true. However, as broadband roll-out continues, supported or supplanted by mobile internet in areas where fixed line connections are simply uneconomical, and the continuing economic issues squeeze marketing budgets like never before, what is not in question is that digital will finally be an essential, rather than optional line in the media plan.

Its estimated that the gap between the time people spend online, and what brands spend to reach them relative to offline media, is $50 billion globally. Whilst Ireland may only make up a tiny proportion of that

figure, no business can afford to let any of their competitors gain an advantage worth even a

fraction of that.

[email protected]

M 10 x 10


M 10 x 10

TENX TEN

M 10 x 10


POINTS FOR 2011

ONE-HUNDRED

Ten consumer trends in 2011Through analysis of research from 2010 conducted by Mindshare/Sponge It and

projections based on local trends, Finian Murphy, Consumer Insights, highlights ten consumer areas for brands in Ireland to be

aware of in 2011.

1. TRANSPARENCY IS THE NEW BLACK

The demand for accountability and honesty from authorities and brands is nothing new, but this will only increase in Ireland in 2011. Global trends point towards the empowerment of people, facilitated through online sharing, demanding greater access to information on Governments and corporations.

Opportunity: Only honest brands will attract consumers and build trust for the long-term.

2. BACK TO THE PARISH

The increased level of anger towards the Government and the frustration of people with the lack of action by authorities, has led communities and families to take action themselves. Local community action will increase as people act on ghost estates, hospitals or local enterprise.

Opportunity: Brands supporting local will be in demand as consumers seek social change.

3. OWNER-LESS

As a result of uncertainty, consumers will continue to hold off on making long-term investments and renting or sharing ownership will become more

popular. The success of Dublin Bikes has resulted in JC Decaux expanding the scheme to 5,000 bikes; car pool websites are appearing and Daft.ie reports that rent has stablised as potential new buyers opt instead for renting - a short term solution.

Opportunity: Offering short-term, low-risk solutions to consumers will only increase their trust and loyalty to brands.

4. CRAZY PRICES

Driven by retailers price-wars and the National Consumer Agency Irish consumers a r e now experts in price, but more specifically in bargains. They are willing to wait, travel or group together to get the best price. In Ireland donedeal.ie, adverts.ie or gumtree.ie have seen huge growth in traffic as people search for a bargain. Globally, group buying gains popularity with the success of groupon.com and brands with dynamic pricing (the Ryanair model), which changes price based on demand and supply.

Opportunity: Real-time price updates to consumers will empower them during the purchasing decision.

5. CONNECTED IRELAND

As Irish people remain constantly online, at their desktop or with their mobile, they have the choice to check prices, store locations or substitute brands whenever and wherever they are.

Smartphones will dominate the market in 2011 and if mobile networks capacity can withstand usage, Irish consumers will always remain connected.

Opportunity: As consumers subconsciously move from offline to on, media engagement should follow.

M 10 x 10

EYE ON YOUR CUSTOMER

6. E-STATUS STORIES & SYMBOLS

Foursquare badges and Facebook friends mug

As social networks encourage users to share, Irish people are not only learning how to use their social networks, but also how to exploit them them to build their profile, popularity and public persona - BRAND ME.

Well see more evidence of people wanting to show their online status in an offline world. Examples include wrapping paper, t-shirts, mugs and postcards. Physical items will be covered with online status symbols.

Opportunity: Brands can provide offline platforms for consumers online stories and status

7. MEDIA MASH-UPS

Dual media consumption will become more prevalent as web-enabled smartphones and lighter and cheaper laptops reach the masses, allowing for interaction during broadcast programming.

Opportunity: Brands with a platform on traditional channels can carry on the conversation with consumers through other digital channels.

8. TARGETING SOCIAL-LITES

As consumers build BRAND ME, they are building knowledge about products and services and will become the go-to-guys/girls for a wide network of consumers with a similar interest. The importance of brand recommendation will increase.

Opportunity: To understand the target segments who are becoming advocates (or not) of brands

Sociali-lites are all about discovery, as consumers become cura tors ; ac t i ve l y broadcasting, remixing, compiling, commenting, sharing and recommending content, products, purchases, experiences to both their friends and wider audiences

Trendwatching, Dec 2011

9. LOCATION, LOCATION, LOCATION

Currently Irish consumers have little interest in, let alone awareness of, location-based initiatives such as foursquare, Yelp or Google Latitude, however with the release in the new year of Facebook Places, the game will change.

When the Facebook masses are made aware that if they let brands know where they are, they can gain incentives, the consumer behaviour will change. This behaviour will lead to the offline world becoming a giant board-game where certain types of consumers will race each other to gain status for being in the right place at the right time.

Opportunity: Location-based tools will allow brands to reward consumers when driving them to the point of sale, while collecting valuable data.

10. DE-TECHING

With the growing use of technology and constant connectivity, consumers will seek an escape from the online world and aim to disconnect.

Interests in outdoor pursuits, adventure sports, music or the arts will increase as consumers seek an alternative to constantly being available. As peoples behaviour, movements and locations are tracked they will de-tech and switch off; brands which offer a disconnected way of life will prosper.

Opportunity: Providing consumers with ways of dis-connecting from online platforms will give brands a greater real presence.

For more information on any of these areas or consumer research conducted in 2010, please contact

[email protected]

M 10 x 10

1 Transparency is the new black

2 Back to the Parish

3 Owner-Less

4 Crazy Prices

5 Connected Ireland

6 e-Status Stories & Symbols

7 Media Mash-ups

8 Targeting Social-lites

9 Location, Location, Location

10 De-teching

TEN Consumer Trends for 2011

De-teching: Consumers will seek to disconnect

Online display in 2011Digital Account Managers, Maeve OGorman

and SallyAnn King, outline how online display is more than just banner ads.

To paraphrase W.B. Yeats, Romantic Ireland may be dead and gone, but Digital Ireland is very much alive and well. Befitting a nation with a future dependent on the smart economy, it has continued its rapid development in 2010, with growth of twelve percent according to the IAB, resulting in a total online ad spend of 53.9m for H1 2010. Growth is predicted to be a further twelve percent in 2011, though we feel that in certain sectors, it could be much higher still.

When many marketers think of digital advertising, they probably of display: banners on sites like TV3.ie or MSN, MPUs on The Irish Times website, or a homepage take-over on entertainment.ie, but this needs to change, because this most traditional of digital channels is changing, and changing fast.

Brands need to be asking themselves what audience they want to target and how to minimise wastage in reaching them. Rather than concentrating on impressions and click-throughs, they need to think

about conversions, life-time value, and granular targeting.

Display campaigns will still include premium sites; banners, skyscrapers and MPUs will still be the workhorses of any campaign; and home-page takeovers will still be excellent means for driving awareness and engagement. But there is so much more! The three areas that are likely to be the primary battle-fields in the coming year are:

ONLINE ADVERTS ARE NOW MOBILE

The great philosopher Homer once asked; The Internet comes on computers now? It does indeed, but it also comes on mobiles, tablets and TV.

When people think of marketing on iPhones and other smart devices, the word that always springs to mind is apps, but theyre not necessarily the right option for everyone.

Brands need to ask: is it something consumers will want? Does it meet a need or serve a purpose? How will the brand benefit? What KPIs can be put in place? Does the target audience use smartphones and download apps? Brands should also look at whether its essential to develop their own apps, or better to partner with trusted media partners.

M 10 x 10

The Internet comes on

computer now?Homer Simpson

NOT JUST BANNER ADS

The other buzzword around mobile has been location: platforms such as Foursquare are attracting a lot of attention, investment, and some serious big brand advertisers. However a lot of consumers still struggle with the idea of publishing their location, even to friends, and so uptake in Ireland is still low.

But mobile marketing is about far more than just apps or location, and neednt be that complicated. Mobile display ads are proving extremely successful, totally blasting standard display ads, with response rates of up to five CTR. In 2011, mobile display formats should be considered as part of any suite of creative ads. And with overall mobile penetration at 120%, many of them, with little or no web access, brands that arent building SMS into their DR & CRM platforms, are missing a very simple trick indeed.

STRONGER TARGETING THROUGH DATA

The use of behavioural, social, search and location-based data has transformed media targeting. In combination with the rise of networks and exchanges, these data sets have huge potential.

The rise of Demand Side Platforms (DSPs) will essentially create a two-tier market, where premium publishers can be used to provide impact & engagement, whilst DSPs will virtually eliminate some

o f t h e m a j o r online ad market

i s s u e s s u c h a s

wastage when audience targeting, media owner price inflation, inefficient delivery & declining performance.

As this data provides more and more value, brands will need to look at how they can start to harvest this data for themselves, in conjunction with agencies such as Mindshare, rather than allowing publishers to always have the upper hand.

RICHER MEDIA: UTILISING CONTENT

Two of the most repeated mantras of the digital age are content is king and reward the audience. Despite the rise of social media & UGC, consumers still want well made, professionally produced content: of the videos that have broached the magic 100 million views mark, 80 percent are professionally produced. As traditional media owners struggle to find the ad revenue to create or co-create the content that consumers are screaming out for, opportunities w i l l a r i s e f o r brands.

YouTube is now t h e w o r l d s second largest search engine, whilst video is soon expected to take up the majority of the internets bandwidth, displacing peer-to-peer networks: with the rise of twin-screen viewing, and the concurrent explosion in VoD (such as RTs Player) the signs are clear that brands need to start thinking of AV rather than TV strategies.

But content is not just video; it is anything worth creating that the audience finds beneficial or engaging. It can be something as simple as serving bespoke text to your audience from established authors, right up to a TV series; it can be tailored to all budgets and crucially, it can also be a potential revenue stream itself. As the web becomes one of the most dominant ways of delivering content, the brands that win will be those that are able to become, in consumers eyes, more than just companies that make & sell stuff, but instead come to be seen as entertainment brands in their own right.

M 10 x 10

1 The rise of DSPs

2 Your Granny on Facebook

3 Location to remain niche

4 Smartphone penetration to hit one million

5 Digital adspend to reach 20% of total

6 Groupon: the 2nd most popular site in Ireland

7 iAd will be too expensive for Irish market

8 App sponsorship replacing app development

9 BBC iPlayer will launch in Ireland

10 And even more emphasis on accountability

Ten Points on Display in 2011

It boils down toright message,

right user,right time,wherever they are.

Search strategy is crucialIn a world where the consumer seeks more

information as soon as they are made aware about a brand, search is a key element of all

media plans. Gavin Duff, Head of Search, discusses the main points to consider for

search in 2011.

2010-2011 could well be remembered in years to come as the point in time when Googles, to date, unparalleled growth, and near universal positive reputation, finally took some serious blows.

2010 saw it pulling out of China, the worlds largest internet market (though not yet the largest ad market) in a move that, though cleverly played, was essentially a massive climb-down on its previous China policy; being rapped on the knuckles in a variety of countries for privacy invasions caused by the roll-out of the Street-View product; seeing share price stall, despite repeated strong revenue announcements; and finally, but potentially most damagingly, seeing anti-trust investigations being launched against it in the US & EU.

In many ways Google has taken on Microsofts role as the tech company everyone loves to hate and, just

like Bill Gates creation did from its own regulatory battles in the late 90s, could well emerge from all of this weakened. However, the coming year will see Google challenged on a number of fronts, both commercially & legally.

If Google is the new Microsoft, Facebook is the new Google: yet to roll out an IPO, it too has suffered a lot of negative PR, but continues to acquire users and revenue at an impressive rate. In 2010 it announced a partnership with Bing to promote social search, where a users search results are informed by content that their friends like, as opposed to the more traditional ranking formula of counting links. Whilst Google has been testing this for a while, the huge amount of data that Facebook holds could see this emerging as a key weapon in Bings armoury.

As if to capitalise on this, B ing w i l l l aunch in Ireland in 2011, and we expec t i t to put a serious media budget behind the launch. In the US this has seen it claw valuable share points off Google. Given Google's current market share in Ireland, Mindshare welcomes anything that increases competition: on t o p of this, Bings alliance with Yahoo is also likely to hit Ireland in 2011, potentially making it more efficient for advertisers to spread budget around different engines, rather than putting it all in AdWords.

M 10 x 10

THE SEARCH GOES ON

-10%

0%

10%

20%

30%

Jan-

09

Feb-

09

Mar

-09

Apr-0

9

May

-09

Jun-

09

Jul-0

9

Aug-

09

Sep-

09

Oct-0

9

Nov-09

Dec-09

Jan-

10

Feb-

10

Mar

-10

Apr-1

0

May

-10

Jun-

10

Jul-1

0

Aug-

10

Sep-

10

Oct-1

0

Nov-10

This is particularly important given the fact that Googles cost-per click is on the rise each year.

As holding steady, or even increasing revenues doesnt seem to be enough to keep shareholders happy, and may not be enough to stave off increased competition from Bing, Yahoo & Facebook.

Google has made some significant developments with its search platform, some of which will emerge in Ireland throughout 2011. We have listed some of the main product developments here.

KEY DEVELOPMENTS

Google InstantA new search enhancement that shows results as you type.

Real Time SearchUp-to-the-second social updates about hot topics around the world.

SitelinksWeb site deep links underneath paid and organic search results.

RemarketingTargeting users who have interacted with your web site and serving them a specific message as they browse other web sites.

MapsGoogle Maps appearing under paid search results.

Paid search videosVideos appearing under sponsored search results.

CPC TRENDS SINCE JAN 2009

M 10 x 10

1 YouTube: more than funny cat videos

2 Facebook: Search for your ex, boss or mum

3 Hunch: Your answer, it recommends

4 Urbanspoon: Find local restaurants

5 Taptu: Whats trending, not just popular

6 Wikihood: App gives wiki info on locality

7 Daft: Search for a new home

8 Scanlife: App to get info from barcodes

9 Shazam: Dont know the song, Shazam it!

10 Golden Pages: Yee olde traditional

Ten Other Places to SEARCH

What to watch in social mediaAs marketing plans strive for more

engagement with consumers, Ciarn Norris, Head of Digital, discusses how social media

compliments other media activity.

I dont think were in Kansas

anymore2010 was the year that social media went mainstream: whilst some still doubt its validity, theres no arguing with the 600 million active members of Facebook, the $6 billion bid for Groupon, the fact that it was Twitter that spread the allegations of Brian Cowens well-refreshed radio interview around the world, or the fact that the news headlines have, for the past few weeks, been dominated by political leaks spread through an open-source platform.

So with all this in mind, what will 2011 hold for the emerging social web and what will it mean for Irish marketers?

Firstly, 2011 will be the year where any brand worth its salt will have to at least consider how to use social media. Many brands still consider it to be something for kids, despite the fact that the largest Irish demographic on Facebook is women aged 26-35, whilst social games like Farmville tend to appeal to those aged over 35. Its therefore essential that brands consider how their audiences use these platforms, wha t b rands can add to these experiences, and how social can fit into their overall objectives.

Secondly, it will be essential to think of social not as a silo or channel, but as a

platform that can support any & all communications activities,

whether on or offline. The rise of twin-screen viewing, where people watch TV at the same time as surfing the web via laptops, tablets or smartphones, has seen TV become a social experience again.

When British dairy brand Yeo Valley launched an amusing two minute ad in

the first live edition of X-Factor, it was a global trending topic on Twitter for two hours

longer than the show itself. This shows that brands shouldnt just be planning paid media, but rather how paid, owned & earned media can be planned in conjunction to drive further value.

M 10 x 10

ALL MEDIA IS SOCIAL

Another key issue for international brands operating in the Irish market will be how to manage profiles on sites where a global, or even UK, profile already exists, as well as how to localise content. Whilst this is a challenge, it is also an opportunity. Many such brands have never been able to build a case for localised web-sites: creating channels on Facebook, YouTube, Twitter, or whichever social platform is most relevant, makes this an easier sell. It does of course mean that there is a need for content and resource to keep the profile maintained. However research has proven that the value of building true advocacy, should outweigh any short-term costs.

Just as it has been easy till now to brush off the need to invest in social, so it can be just as easy to chase the latest trend. 2011 is likely to see a continuing push towards location based services (LBS) such as Foursquare and, when it arrives in Ireland, Facebook Places. Theres no doubt that such tools add an interesting layer to the web, but too often they are very niche, with no obvious value to most people (and a large cost in terms of the need to provide very personal details). When considering the relevance of LBS to a brand, its important to balance the investment, in time as well as money, with the likely reach, and to always ensure that location is a means, rather than the end.

Where Facebook Places and its like have done well, is in the area of targeted discounting: Groupon, the business that shrugged off a multi-billion

dollar offer from

Google, typifies this, offering huge discounts on local businesses. The size of Groupon demonstrates its efficacy, but brands should be wary of rushing into its arms. Customers bought with huge discounts are often the least loyal, whilst commodotising your sector or brand is something that is hard to come

back from. Providing value through entertainment, utility or information is a more long-term strategy when it comes to cracking the social web.

Because, thats what the web now is: social. Over two million sites use Facebooks Open Graph/Connect APIs to plug their properties into peoples expanded social network. Both Google & Bing are now taking signals from social networks, in terms of likes & tweets, and using them in their ranking algorithms. Retailers like 7-11 now reward consumers for spending real money in their stores with virtual money to be spent in Farmville.

And thats the single most important learning brands need to take into 2011: social media isnt optional anymore, its essential. It impacts consumers consideration levels for brands, your search rankings, is the way that your advertising messages spread, as well as the way bad news about your brand spreads too; its the way to target prospective customers, as well as the way to gain insight on your audience.

Of course, like anything, there are risks as well as rewards. Whilst 2010 saw the rise & rise of Facebook, it also saw the steady decline of MySpace. Because whilst there are no costs to join these networks, theres also nothing stopping people leaving, other than whether their friends & peers are still using them. So whilst investing in social should be essential in 2011, its also important not to put all your eggs in one basket.

M 10 x 10

1Apple iPad

Over 25,000 articles/blog posts before launch

2Brian Cowen

457 articles on Morning Ireland interview

3Rubberbandits

Over 3 million views on YouTube

4Fade Street

First broadcast: 670 comments during show

5Ivor Callelly

5,000 tweets about his expenses in 2 months

6Toyota Recall

In February, 5,000 posts worldwide each day

7Tiger Woods

25,000 articles over 3 months after incident

8British Elections Leaders debate

5% of worldwide tweets

9Mr. Tayto

Popular guy with 85,264 fans on Facebook

10RBS 6 Nations

RBS in 53% of 19,903 mentions of 6 Nations

Ten Trends in Irish Social Media

TV, not dead, just adaptingMembers of The Exchange team,

Neasa McDonagh and Rhona Dineen review the year when TV adapted under pressure

from new digital channels.

2010 has been a year of change in both TV consumption and viewing habits. From Nielsens introduction of TSV (t ime shifted viewing) measurement in September to Skys launch of a 3D service to households in October, together with increasing numbers of UK channels available to Irish advertisers, the Irish TV market is a considerably different place to 12 months ago. Overall in 2010, TV advertising is up by just over 2% year on year. While growth was modest, it was a strong performance when set against the wider context of the traditional media market, and also the steep decline of the previous two years.

FAST FORWARD

The addition of DVRs (Digital Video Recorders; such as the Sky+ box) to the market over the past eight years was expected to lead to increased time shifted viewing, at the expense of live viewing but Nielsens consolidated ratings figures show otherwise. For the first time in Ireland we can track this and can see that, on average, time shifted viewing only accounts for two percent of total viewing. Some channels index much higher than others for this type of consumtion, most notably Nick Jnr.; hardly surprising to parents of young children who know the value of series linking Peppa Pig and Dora the Explorer. Another curious revelation is the number of people who watch the ad breaks on DVR; despite having the option to fast forward, viewers are not really doing so. Perhaps after theyve paused Corrie to run and make that cuppa, they forget theyre no longer watching live?

VIDEO ON DEMAND:

VOD is something many of us have become increasingly au fait with over the last year. Since its launch in Summer 2009, the RTE player has gone from strength to strength, having clocked up 9.3 million page impressions with 380,000 unique users last month. Similarly, TV3 enjoyed unprecedented success when it transformed its website in early 2009 from a showcase brochure to a major catch-up TV hub. Both stations released iPhone applications this year and as the drive for increased broadband penetration continues, this is an area that is set to grow and grow.

M 10 x 10

THE TV REVOLUTION

Indeed Video On Demand should not be treated separately. The RTE and TV3 players can effectively be viewed simply as additional TV channels. This comes with a number of important considerations for next year and beyond:

Firstly our recommendation is that approximately 5% of TV budgets should be invested in VOD.

Secondly advertisers creating new TV content should do so with VOD in mind. VOD requires separate buy outs, which the creative agencies should also be securing. Beyond that, the most engaging format available, the pre-roll, can only accommodate 20 ads and shorter (although mid-rolls can take up to 30). So cut-downs or shorter ads are more important than ever.

2011

Looking forward to 2011 in a cautiously optimistic manner, modest growth in TV advertising revenue is looking likely, alongside continued growth in digital advertising. The swell of recently added and upcoming opt outs include Comedy Central Extra and Universal this month, with Sky Atlantic and More4 available by February 2011.

Expect to hear and see a lot about Saorview, Irelands Digital Terrestrial Television, from early 2011. By

A p r i l , i t i s envisaged that

90% of DTT will be rolled out, well

ahead of the EU policy deadline for full digital switchover and analogue switch off in December 2012. iDTVs (Integrated Digital Televisons) and set top boxes bearing the Saorview logo will become commonplace in stores in the coming weeks and

months promising the TV viewer an enhanced viewing experience with high quality picture and sound, and more TV services, such as onscreen menus and interactive features.

DTT will also see the launch of new stations from RTE and TV3 including the RTE kids channel and TV3 HD. The sheer level of choice and flexibility available to v iewers w i l l l ead to even more aud ience fragmentation, increasing the importance of both sound audience profiling, and in depth planning for any brand considering TV.

Although our TV landscape is changing at a dizzying pace as a result of new channels and new technologies, and although we cannot predict exactly how TV will look in 10 years time, we can be sure that TV will remain a powerful medium and continue to be the cornerstone of the big brands advertising and communication mix.

The big screen in your front room is going nowhere, but what and when you, the viewer, chooses to watch on that screen is changing dramatically.

[email protected]

M 10 x 10

11.4 million views of Late Late Toy Show

Highest rating programme in 14 years

2Live Soaps

Corrie aired the first live soap on 2nd Dec

312 minutes of adverts per hour

TV3 increased mintage this year

4Live TV adverts

Live Denny advert on Christmas Day

5Social viewing

Increase in tweeting while watching telly

62 million RTE Player streams per month

In December, viewership online peaked

79 - 10pm is busiest RTE Player time period

Viewership online while people are at home

8Digital Terrestrial TV will launch in 2011

A new promised roll-out date

96,146 TV hours bought by GroupM

1 in 4 adverts TV ads aired

106,872,872,894,000 times

Mindshare TV spots viewed in 2011

Ten Things About TV and VOD

approximately 5% of TV budgets should be invested in VOD

Analogue will be switched off in December 2012

Radio market developmentsRadio remains a strong medium, with new

stations and movements of key personalities, Radio Planners, Conor White and Niamh Murphy outline the main developments.

2010 has been a very challenging year for radio. The market has addressed some troubling issues such as a fifteen percent drop in revenue across the year and in April, the untimely death of Gerry Ryan rocked the industry.

However, radio holds a special place in the Irish psyche, partly down to an oral tradition and culture, and partly down to a heritage of slow TV uptake and

options. In 2010 that relationship continued, and saw some very strong positives, the most n o t i c e a b l e b e i n g t h e introduction of a new radio station into the market place with Radio Nova, while 18 months into its new venture, 4FM is showing steady growth.

Overall, listening to radio remains strong despite latest figures showing a slight decline, with 85% of the country tuning in everyday. On average people are listening to radio for 3.9 hours every day. That figure has been consistent for the past three years, and will remain in 2011.

BIG SHIFTS

In 2010 we have seen a shift away from national to regional and local radio, w i th a number of the n a t i o n a l f l a g s h i p programmes, including Ian Dempsey, Gerry Ryan and Morning Ireland, showing the greatest decreases. In contrast local stations such as Dublins Q102 and Spin 103.8 saw strong growth. This is a trend we see continuing in 2011, as people look for new stations and fresh content in their daily listening.

2FM has geared up for a fight, and made a number of changes to its primetime schedule since September, going after Today FMs stronghold: the 20-44s. The flagship show, Ryan Tubridys new midmorning programme, has done well and will present a real challenge to Ray DArcy. Breakfast with Hector is something of an unknown; its his first solo show and while he should reverse some of 2FMs recent losses,

hes unlikely to make much of an impact on Ian Dempseys 35,000 advantage.

M 10 x 10

RADIO STARS Today FMs Ray DArcy sponsored by HB ice-cream

Hector O'Heochagain2FM Breakfast Show

Despite these changes, its unlikely that 2FM will be in a position to take Today FMs 20-44 crown in 2011, as Ray Foley and Tony Fenton will retain strong audiences in the afternoon.

RADIO ONLINE

The last twelve months have, for the first time, shown the changing platforms for radio listenership. While 85% have access to radio through the set itself, over 50% now have access via TV and the internet. According to the latest JNLR numbers; 32% of radio listeners have the capability to access radio on their mp3/Walkmans. One interesting inclusion on Apples new iPod is an FM receiver. Apple has realised that rather than being an alternative to listening to radio, the mp3 player can work with radio: tagging new songs which can then be bought via their iTunes store. We know that for Irish consumers radio is the number one source for new music and as such the shopping window for acquisitions. Apple has now made it possible to instantly access its store after hearing songs on the radio. Rather than being competitors, iPod and Radio will work in symbiosis.

Though the number of people listening online has increased, the question of whether listeners will stay loyal to Irish stations is easily answered when you look at the numbers the local stations draw. Their content is more relevant than that of the nationals, or their international counterparts.

How does this affect the radio market in 2011? The main implication is the increased importance of local stations for national campaigns; it is no longer enough simply to buy big national stations to hit the highest number of listeners, but rather a broader mix of stations is becoming increasingly important for achieving higher levels of both coverage and frequency.

[email protected]

M 10 x 10

1 85% daily listeners

2 On average over 1.3 million people streamed RTE radio every month

3 Radio stations in Ireland have over 300,000 followers on Facebook

4 Retail is the top category on Radio with 22%

5 There are 6 digital radio stations in Ireland

6 12% of radio listeners listen online

7 On average people listen to 3.9 hours of radio per day

8 All of the top 10 radio shows lost listeners in 2010

9 Listenership of local radio increased 8% in the last year

10 Morning Ireland is still the most listened to show in the country

Ten Radio Developments

Apples latest iPod Nano includes a FM receiver

32% of radio listeners have the capability to access radio on their

mp3/WalkmansJNLR, 2010

Outdoor market & innovationsSenior Account Manager, Emma Daly

summarises outdoor news and highlights the strongest campaigns in 2010.

Overall the outdoor market for 2010 has stood up very well. Initial indications are that revenue across all formats will be down approximately 4% by the end of the year. Like 2009, strong performances from the traditional outdoor stalwarts (the telecoms sector, both mobile and broadband and entertainment, both in-home and cinema); coupled with investment from the likes of Vhi, Specsavers, and Ulster Bank have seen the market cope well through the last twelve months.

The main development in 2010 has been the opening of Terminal 2 in Dublin Airport; it bringing with it a whole slew of new advertising opportunities. The Terminals expected traffic in 2011 will be in the region of eight million passengers, and given the profile of flights arriving and departing, it promises to deliver a strong ABC1 and business audience.

Beyond that, we also saw the extension of the Luas green line to include nine new stops, providing a much more extensive and dense commuter audience.

Finally in 2010, Bravo Outdoor retained the lucrative CIE contract for a further five years. This represents great news for all advertisers in 2011 and beyond, as it keeps three strong players in the large format market.

TOP PERFORMERS

There is no question; demand for point of sale formats has been extremely strong in 2010. A combination of a greater number of retail deals being communicated, and a genuine desire from advertisers for increased tactical positioning at POS, has driven a strong demand for both Purchase Point 6 sheets, and some of the smaller, targeted, ambient formats.

MetroPanels have also seen demand remain high: the limited number of sites, and their high profile positioning in and around high street and city centre locations has proved highly resilient. This has been particularly pronounced in the lead up to the busy shopping period around Christmas. The good news for 2011 is that JC Decaux and Dublin City Council are set to increase the panel numbers.

There has also been strong demand for tactical targeting around key events. As usual, the battle grounds of the Six Nations, the business end of the GAA championship, and Heineken Cup home games have seen extremely strong demand, while the second half of the year also saw tactical increases around Michael Bubles concert and the national soccer teams return to the Aviva Stadium.

M 10 x 10

OUT AND ABOUT

VALUE IN 2010 AND 2011

2010 saw some excellent deals being rolled out, but did see a shift away from the short term, last minute offers which dominated 2009. This has been partly led by advertisers recognising the value of quality sites over sheer volume.

However, media owners have also been more reluctant to make the offers, opting to reward larger campaigns and advance bookings with run on and bonus instead.

This trend again looks set to continue as the market settles into the new economic reality.

EXPECTATIONS FOR 2011

Demand will again be extremely strong in 2011 for retail and events, particularly in the run up to Europa League final.

In terms of new format developments, Bravo will roll out new transvision screens to the main stations in Cork, Limerick and Waterford, while JC Decaux will increase panel numbers for their high profile MetroPanels and MetroPoles.

In keeping with developing digital opportunities, Dundrum Shopping Centre is set to become a show case for the potential of digital outdoor, as the Centres ad formats are updated, offering excellent dynamic retail and branding opportunities.

DONT FORGET THE SPECIALS!

Finally 2010 has also seen some extremely clever and innovative use of the medium. We have compiled a list of ten of the best examples, and were very proud to say many of them have been from Mindshare clients, credit to all involved.

[email protected]

M 10 x 10

1 Harry PotterLuas Hogwarts Express

2 Surf Baggage reclaimTargeting consumers bags of dirty laundry

3 Smarties Hallowe'en

4 3 MobileQR codes - linking digital and outdoor

5 RiverrockOne day advert after Arthurs Day

6 Coca ColaSnow Globe

7 Polo InteractiveAre you a chewer or a cruncher?

8 Bord GisInteractive outdoor iPhone app

9 Quality StreetOutdoor poster made of sweets

10 JamesonCountdown to the Film Festival

Ten Great Outdoor Innovations

1 2 3 4

5 6

7 8

9 10

Key changes in pressAs digital distribution becomes a threat to

the traditional press model of print on paper, Gemma Morris and Jessica Lawlor review a

year when press titles hit the headlines

2010 has been a difficult year for press. The latest ABCs (January June 2010) show drops across almost every newspaper title. The biggest losers have been the Sunday papers, with the Sunday Tribune seeing a YoY decrease of over seventeen percent. The Sunday Business Post and Sunday People have both seen double digit drops. Overall, the Sunday market has contracted by five percent, compared to only a 0.5% drop (January June 2009 vs. January June 2008).

In the daily market, January - June 2010 saw an annual drop of over six percent, almost double the decrease of the previous year. Several of the tabloids were the worst hit, with the Star down by over eleven percent and the Mirror at -6%.

However, the Times and Independent are also down by eight percent and five percent respectively, suggesting that demographic trends are not driving this decrease, but rather that the population as a whole is buying less.

As consumers budgets have tightened their repertoire of titles and their frequency of purchase has declined accordingly. After all, they can source their news far more cheaply online.

Nevertheless, the press market in Ireland still remains incredibly important; over 87% of adults read a paper each week (NNI). Print remains a trusted medium for people to get their fix of local and world news, and also for advertisers to reach the masses. Now more than ever, trust is a vital element.

TRUST

Indeed trust, and the surety which it engenders, are the key weapons in the newspapers arsenal.

Even though consumers may be looking online for news content, they are still going to the established news sites. News has not begun to magically appear, in many instances it continues to come from the same journalists columns and titles that it always did.

M 10 x 10

READ ALL ABOUT IT

Google searches dont throw up obscure user generated news sites; instead the top results tend to be traditional, reputable news outlets.

To l iberally sprinkle some jargon into the conversation; consumers are arguably still brand loyal they are just platform-neutral. Irish Times readers still consider themselves Irish Times readers, even though they may no longer buy the paper; instead picking up the stories on their smartphone during the commute, or online at their desks. Indeed the transition from a consumers perspective, while protracted, has been relatively seamless. They are reading a similar repertoire of papers, they are just reading less of it off paper itself.

WHAT CAN WE EXPECT IN 2011?

First and foremost, we can expect to see a lot more cross platform opportunities for advertisers, incorporating the paper itself, the web version, the mobile, and ultimately the tablet or iPad version.

We also expect to see much more research from the titles about their own readers. Not just to reinforce sales pitches, but also to help them provide increasingly more valuable and relevant content.

This content change has already begun. Witness the Irish Daily Mails publication of YOU magazine and The Suns Buzz magazine, both of which have been extremely shrewd about increasing relevance to their audience.

Unfortunately, we can also expect to see more regional press closures next year. 2010 saw the closure of a number of titles: The Roscommon Champion, Athlone Voice, Sligo Post and The Kilkenny Voice. As investment in regional press continues to suffer, more titles will face real problems.

The medium term future of the press industry is undoubtedly one of change, in the short term though it is still a vital part of Irish society, and sets the agenda for conversations.

For advertisers, especially direct response advertisers, it offers a great way to drive response at low cost, whilst also offering excellent accountability. Most importantly, from a buying perspective, there has been no better time to achieve cost efficient and interesting print solutions.

For more information on press developments in 2011,please contact your Account Manager

M 10 x 10

1Broadsheet to Compact

The Irish Independent, The Sunday Tribune and some regional titles have switched

2Paper to digital

As readers migrate online, some titles are currently looking into charging for content

3Decrease in circulation

Circulation has declined as a result of people buying less papers each week

4Newspaper apps

Free and paid-for smartphone apps are making content more accessible

5Increased investment in product offering

Introduction of TheSuns Buzz, The Sunday Tribune magazine and Paul Williams in NOTW

6Irish Content

All of the UK titles have now massively increased their Irish content

7Closure of regional titles

The Roscommon Champion, Athlone Voice, Sligo Post and Kilkenny Voice have been hit

8Increasingly innovative formats

More accommodation of clients needs and increasing the range of innovative formats

9Increase in added value

Free ads with a certain investment, editorial or even just better customer service

10Newspaper mergers

Metro and Herald AM merged to form daily morning newspaper Metro Herald.

Ten Press Developments

Update on CinemaFinola Geraghty, Account Director and

Eoghan Vignoles, Account Manager review the year in cinema and look forward

to new released for 2011.

2010 saw a series of minor evolutions in what we define as Cinema in Ireland; some obvious, some slightly less so.

Firstly, operators are no longer just screening movies. In 2010 Movies@ were the first to show the Ireland versus Engl

Mindshare 10 x10 trends for 2010 and 2011

Business

Transcript of Mindshare 10 x10 trends for 2010 and 2011