Redbox Interactive Media Campaign

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we are where you are

description

For an advanced strategic interactive media course, I developed a marketing plan for Redbox with a focus on young Hispanic families.

Transcript of Redbox Interactive Media Campaign

Page 1: Redbox Interactive Media Campaign

we are

where you are

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Samantha GanzKassie McLaughlin

A strategic interactive media plan for

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TABLE OF CONTENTS

Situation Analysis

Campaign Objectives & Strategies

Media Objectives & Strategies

Online Advertising

Streaming Video & Audio

Search Engine Marketing

Search Engine Optimization

Mobile Advertising & Promotions

Location-Based Advertising & Promotions

Mobile Application

Social Media

Digital Out-of-Home

Campaign Summary

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The DVD rental industry presents consumers with many options of how and where to rent movies. Individuals can rent DVDs in-store, at rental vending machines, stream video online, buy directly through their cable provider or receive DVDs by mail.

These many options allow consumers to tailor their DVD rental experience to their exact preferences, focusing on whichever element is most important to them, whether it is price, convenience, method of payment, etc. In 2009, DVD vending companies represented 19 percent of the DVD rental market, while rent-by-mail held 36 percent and traditional movie rental stores claimed 45 percent.1

With the overall economic struggles of the past few years, research shows people prefer to rent DVDs rather than purchasing them. In 2009, DVD rental revenue increased 4 percent while sales dropped 13 percent.2

In the DVD rental industry, Redbox is a convenient and inexpensive option for consumers. Redbox began 2010 with 23 percent of the U.S. home video rental market, and increased by 7 percent to reach 30 percent at the end of the year.3,4

SITUATION ANALYSIS

Industry revIew

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Brand revIew

In July 2010, BusinessWeek named Redbox the fastest growing U.S. video retailer.5 The company began in 2002 under McDonald’s ownership and officially entered the marketplace in 2004 with more than 100 self-service vending kiosks for DVD rentals. Now, 26,000 Redbox kiosks exist nationwide in grocery stores, convenience stores, gas stations, pharmacies and some popular national landmarks. The company’s key retail partners include:

• Walmart • Walgreens • McDonald’s • Leading Grocery Stores such as Kroger and Albertsons • Leading Convenience Stores such as 7-Eleven and Circle K

At each self-service vending kiosk, the Redbox interactive touch screen allows consumers to browse more than 600 DVDs, spanning 70 to 200 titles.6 Customers can rent DVDs for one dollar plus tax per night with a credit or debit card.

The Redbox website and iPhone app each offer consumers the opportunity to reserve their movie ahead of time and pick it up at their kiosk of choice. Redbox emphasizes their product’s convenience with a “rent-and-return” policy that allows DVD renters to return their DVD to any kiosk, regardless of where they rented.

Every Tuesday the newest releases are stocked in Redbox vending machines, yet the most popular night for rentals is Friday when Redbox processes about 80 transactions per second.1 More than one billion movies have been rented out of Redbox kiosks and the company continues to grow.6

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Mary Jones, a fourth grade teacher, and her husband, Tom, juggle a busy weekly schedule between work and their two teenage children. Four years ago, Tom was laid off from his job as an IT technician for a large corporation. Now, he works to make ends meet by freelancing as an IT specialist. With a significantly reduced household income, the Jones’ closely limit their recreational spending. Most challenging is coming up with ways to entertain their children, since they previously frequented movie theaters and theme parks, and often took adventurous family outings. Now they enjoy low-key Friday nights at home, playing board games and renting a movie as a family.

• Rents films between 4 and 9 p.m.10

• Stopped buying and renting DVDs in the last three years because it was too much expensive or too much hassle7

• Uses the Internet to shop for products and get information9

demographIcs

• Low income household of $10-45K7,8

• Large, teen-dominated families9

• Heads of households most likely to be between the ages of 30 and 49

attItudes

• Prefers to spend a quiet evening at home• Often sits down to a meal together at home9

• Values self as strongly family-centered

BehavIors

SITUATION ANALYSIS

current consumer

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competItIve revIew

Redbox Strengths• As of 2010, Redbox had 26,000 kiosks compared to Blockbuster Express’ 10,000 • Blockbuster Express is a new service released in the last 2 years; Redbox has been serving

consumers since 2002

Redbox Strengths• Consumer does not have to have access to Internet or broadband connection• No commercials (compared to Hulu)• Relatively cheaper• iTunes rentals are $3.99 for 24 hour access to new releases • Netflix costs at least $8-10 a month11

Redbox’s Strengths• Consumer can have the DVD as soon as they go to a Redbox, they do not have to wait 2-4

days for it to arrive in the mail

dvd rental vendIng companIes and KIosKs: BlocKBuster express

onlIne streamIng: hulu, netflIx, Itunes, apple tv, google tv

rent-By-maIl: netflIx, BlocKBuster

Redbox is America’s destination for movies

Redbox Weaknesses• Blockbuster has strong brand recognition as a leading movie rental service• Blockbuster Express has a connection to Blockbuster stores, for more rental options

Redbox Weaknesses• Consumer can access movies directly through their computer or television without

having to visit a kiosk• Consumers may already use online streaming services to access TV shows and music

and will not want to use an additional service for movies

Redbox’s Weaknesses• Consumer does not have to leave their home to access DVD• Rent-by-mail has a larger selection of older titles than Redbox

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Redbox’s Strengths• Less expensive: Redbox DVDs are $1 per night compared to $4-6 a cable provider charges for a 24 hour rental• Consumer has a physical copy of the DVD to watch in any DVD player or computer, compared to a DVD

rented from a cable provider which must be watched on the television it is rented on

Redbox’s Strengths• No membership required• Consumer does not have to go out of their way to visit a rental store; kiosks are located at grocery stores, convenience

stores and pharmacies • Kiosks only have hit movies and a limited number of titles,

making it easier for individuals to find what they are looking for12

• No late fees: all DVD rentals are $1 per night

dIrect from caBle provIder: On DemanD, DIReCTV

rental stores: BlOCkBusTeR, HOllywOOD VIDeO, FamIly VIDeO

SITUATION ANALYSIS

competItIve revIew

Redbox’s Weaknesses• Consumers do not need to leave their home to rent a DVD• Consumers do not need to use a credit card, as on-demand purchases are directly added onto their cable bill

Redbox’s Weaknesses• Rental stores have new releases 28 days before kiosks• Can return DVDs until midnight at most rental stores as

compared to 9 p.m. at Redbox• Stores carry older films and videos in niche categories

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Affordable• $1 per night and no late fees• No subscription necessaryConvenient• Kiosks located nationwide in highly frequented

venues such as Walgreens, McDonalds and CVS

• Rent-and-Return anywhere policy allows customers to return DVDs to any Redbox kiosk, regardless of where they were rented

• Consumers can reserve a DVD online or via mobile for pickup at kiosk

Interactive• Active presence and strong following on social

media sites such as Facebook and Twitter8

• Strong cohesiveness throughout email, mobile, social media and website marketing8

• Does not receive the newest DVD releases until 28 days after they arrive in retail stores

• Requires payment by credit or debit card• Videos cannot be streamed online or

accessed through current cable provider, instead users must visit a Redbox kiosk

• Limited amount of DVDs in each kiosk

• Create loyal customer rewards program• Tap into Hispanic market • Leverage Hispanic use of mobile by increasing

Redbox application’s features• Position Redbox as an inexpensive, family-

oriented source of entertainment

• Delay of access to new releases could hinder spontaneous purchasing at kiosks

• Movie companies could drive up licensing fees, which could force Redbox to charge more per rental

• Rise of other competitive DVD and streaming services

strengths weaKnesses

opportunItIes threats

<< S.W.O.T.

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• Connecting with Hispanic non-users where they participate online and on mobile devices

• Expand mobile application’s features to increase competitive advantage

• Create customer rewards program to sustain brand loyalty

Key opportuntIes

BusIness oBjectIve Increase Redbox DVD rental sales by 3 percent

Jose and Gabriella Martinez each work 60-hour weeks to provide for their household, which currently includes their two young children as well as Gabriella’s parents and brother. They value their time together and eat a large traditional Hispanic meal every Sunday. With a mixed-generational family, both English and Spanish are spoken in the Martinez home. Gabriella is the primary household shopper, and always takes advantage of special offers. Jose considers himself the man of the house and gets information from the Internet to make decisions for the household. With a low household income, it is difficult to entertain the whole family outside of the home. The Martinez’s instead find inexpensive ways to pass time together at home. Most recently this includes arts and crafts with the kids and watching a movie as a family.

strategIc value consumer

CAMPAIGN OBJECTIVES & STRATEGIES

why thIs svc?• Hispanics fit into Redbox’s current target of low-income families, yet spend their time on and offline

in different places than where Redbox currently focuses their advertising.16 Marketing to Hispanics directly will tap into a relevant new target.

• Our strategic value customer is based on research that shows that Hispanic families are on a budget, looking for family entertainment and are likely to purchase a good after reading about it online.9. 17

• Targeting Hispanics in the areas where they are most active on and offline will expand Redbox’s current market to non-users that once reached are likely to be avid consumers.16

• Research showed that our SVC is not influenced by their children when it comes to purchasing decisions.9 Therefore, although we are emphasizing Redbox as a family-centered purchase, we are primarily targeting heads-of-households because they are the decision makers.

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demographIcs9

• Hispanic• Household income of $0-30K• Heads of household between ages 18 and 34• Has children under 10 years old• Primarily resides in mid to large cities in the South and West13, 14

• Highest level of education obtained is a high school diploma or some college experience15

• Does not have a strong language preference, but speaks both English and Spanish• Often sits down to a meal together at home with family• Strongly agrees that the Internet significantly changes how they get information and

shop for products• Strongly agrees with the statement, “I often buy on spur of the moment”• Does not enjoy shopping with their children• Describe themselves as a careful money managers

attItudes

BehavIors

• Always looks out for special offers when shopping• Uses high-speed Internet as a primary source of information• Visits video sharing websites such as YouTube frequently16

• Uses a mobile phone regularly• Researching products online often leads to an in-store purchase• Frequently visits Myspace, Yahoo, Twitter, Photobucket and Myspace16

strategIc value consumer

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• Get Hispanic non-users to rent 5 movies over the year-long campaign• Get 10% of Hispanics to consider Redbox as their preferred form of DVD rental

PRICE Maintain extremely affordable movie rental servicePACKAGING Change Redbox infrastructure to highlight family-centered naturePOSITION Reposition Redbox as a form of family entertainment that aligns with Hispanic culturePROMOTE Redbox’s affordable form of family entertainment PLACEMENT Place Redbox in areas on and offline that are highly frequented by Hispanic families

CAMPAIGN OBJECTIVES & STRATEGIES

• Generate awareness level of 25 percent among Hispanic non-users• Increase brand engagement of Hispanic users online, as measured by interactions with Redbox’s

integrated media strategy• Convince Hispanic non-users that Redbox provides family entertainment for the best value

• Develop an integrated interactive and traditional media plan with a launch in late October • Get 500 Hispanic users to sign up for Redbox’s customer loyalty rewards program• Develop a “Hispanic Film Festival” week for two weeks in September and October for Hispanic Heritage

Month, to attract Hispanic attention• Showcase Sofia Vergara, our new spokesperson, in all creative• Implement online personality for Redbox on websites frequented by Hispanic heads-of-households

marKetIng oBjectIves

marKetIng strategIes

advertIsIng oBjectIves

advertIsIng strategIes

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Our campaign will show Hispanics the value and convenience of renting a DVD with Redbox. The objectives are based off the fact that Redbox is not currently directly targeting Hispanics. We are reaching out to Hispanics to initially generate brand awareness, and then change DVD rental behaviors to purchase 5 DVDs over the course of our year-long campaign.

Our strategies highlight Redbox as a family-centered brand based off the insight that Hispanics strongly value their family and are likely to live with multiple family members in one household.

Our strategies emphasize targeting Hispanics in specific ways that reach them on a direct, personal level because research shows they spend their time on and offline in different places than non-Hispanics.18

Our pricing strategy is the right choice for our client because it is based off the insight that large families on a budget are already more likely than the average population to use Redbox.12

The advertising strategies launch in October, as the weather gets colder and heads-of-households need to find ways to entertain their children indoors.

Our advertising strategies include using spokesperson Sofia Vergara because she is a popular Hispanic who is close to the SVC in age. Vergara is highly regarded in the Hispanic community, as she will be honored by the National Hispanic Media Coalition for her Outstanding Performance in a Television Comedy Series on February 25. 19

ratIonale

Saving money and convenience are the top priorities for Hispanic shoppers: our promotion strategy heavily promotes Redbox’s affordability and proximity to the user.18

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geography13,14

California• Los Angeles• San Francisco• San Jose• Sacramento

Texas• Houston• Dallas• Austin• San Antonio

Florida• Miami• Ft. Lauderdale

New Mexico• Albuquerque

Arizona• Phoenix

Rationale: Redbox will target these key 12 cities throughout the campaign because they have strong Hispanic markets and overall Hispanic population. Additionally, Redbox kiosks are most likely to be readily available in locations throughout urban areas and their surrounding suburbs.

MEDIA OBJECTIVES & STRATEGIES

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seasonalIty

• Launch in first week of September to celebrate Redbox’s Hispanic outreach just before Hispanic Heritage month begins on September 15

• Continue promotions throughout October switching focus toward horror/thriller movies, which research shows Hispanics have the highest audience share in.19 By showcasing a special selection of horror/thriller films, we hope to elicit attention from the Hispanic community and retain them as loyal customers.

• Heightened advertising efforts will continue in mid-November through December, when Hispanic shoppers are preparing large family meals for the holidays. During this time, research shows Hispanic shoppers are more concerned with family satisfaction, which directly aligns with Redbox’s family-centered objectives and strategies.18 Internet and out-of-home will drive consumers to rent a Redbox DVD when they come across one when they are running errands and buying groceries.

• To start of the new year, Redbox will launch its new Customer Loyalty Rewards Program. In the season of resolutions, Redbox wants to reward its loyal customers for choosing affordable family entertainment all year round.

• Next, we will feature “Rain Checks” for free rentals in April. This program would provide loyal consumers with a free DVD rental to save for a rainy day.

• Our advertising will end with a bang during late July to early August. We will feature “Escape the Heat” specials that provide incentives for our SVC to get out of the high temperatures of the Western and Southern summers and stay cool inside watching a DVD as a family.

September

2011 2012

LaunchHispanic Heritage Month

October January April July

Halloween Thriller Push

Introduce Rewards Program and Redbox Deluxe App

Rain Checks Promotion

Escape the Heat Specials

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Advertising will not vary by week except in the following instances:• Launch in first week of September• Sustain heavy advertising throughout October• Increased advertising in the first week in January will generate attention for the launch of the Redbox

Rewards Program and the Redbox Deluxe Mobile Application. • Third week in July will start “Escape the Heat” promotions

tImIng

weeKs wIthIn the month

• Redbox will emphasize Internet advertising Monday through Friday because our SVC is highly likely to be on the Internet at work as well as at home on these days.9

• The most Redbox rentals occur on Friday nights, and new releases are stocked on Tuesdays.6 Therefore we will target customers during the week to remind them of new releases and steer them toward Redbox for their weekend movie night rentals.

• Redbox will push special family-focused advertising on Saturdays as a form of family entertainment.

• Netflix has strong “gifting” campaigns during the Holiday Season. Redbox should be actively promoting their DVD rental service during this time as well, given that this is a time where families generally spend a lot of time together. During this time, we will emphasize the convenience and affordable value of Redbox’s rental service and the brand’s family-centered values.

• Additionally, we will offer loyal customers chances to get free DVD rentals and new consumers a chance to get cheaper rates on rentals, as it is the Season of Giving.

days wIthIn the weeK

hours wIthIn the day9

• Our SVC is most likely to use the Internet between 9 a.m. and 4 p.m. both at work and at home• During the week, our SVC is highly likely to be on the Internet at home between 7 and 11 p.m. On weekends,

Internet use is high throughout the day at home, from 9 a.m. to 7 p.m. • Our target is also likely to be on the Internet from 6 to 7 a.m. but Internet activity during those hours rarely

leads to a purchasing decision. Therefore, we plan to push our online advertising heavily throughout the workday from 9 a.m. to 4 p.m. This coincides well with current Redbox transaction trends that show most DVDs are rented between 4 and 9 p.m.10

• Our SVC is likely to be “on the go” or shopping from 4 to 7 p.m., so we will increase out-of-home and mobile advertising during these hours.

stayIng competItIve

MEDIA OBJECTIVES & STRATEGIES

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creatIve BrIef

The advertising creative must generate awareness that Redbox is family-focused, and convince Hispanic heads-of-households that Redbox is the most affordable, convenient and enjoyable home entertainment for the whole family.

role of advertIsIng

• Emphasize convenience• Promote affordability• Center on family values

Redbox is the DVD rental service that recognizes and best aligns with Hispanics’ lifestyle, helping them achieve family moments and togetherness that they highly value.

Happy, uplifting, joyful, family-focused, togetherness, loving, affectionate, caring, memorable

creatIve BIg Idea: “we are where you are”

Key message

tone

Ads depict happy families enjoying their time together, bright colors, light-hearted background music, people smiling and laughing

manner

we are

where you are

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flowchart

Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug.

Online Advertising

Streaming Audio: Pandora

Search Engine Marketing

Landing Pages

Search Engine Optimization

Mobile Advertising

Mobile Promotion

Location Based AdvertisingLocation Based Promotion

Mobile App

Facebook, Non Paid

Twitter, Non Paid

Facebook, Paid

Twitter, Paid

Digital Out of Home

MEDIA OBJECTIVES & STRATEGIES

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Budget

Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Total

Online Advertising

Streaming Audio: PandoraSearch Engine Marketing/Landing PagesSearch Engine Optimization

Mobile Advertising

Location Based Promotion

Mobile App

Facebook, Non Paid

Twitter, Non Paid

Facebook, Paid

Twitter, Paid

Digital Out of Home

TOTAL Media Budget

$14,117,724 $12,560,454 $12,075,246 $14,516,298 $20,578,218 $11,994,948 $11,994,948 $18,319,374 $11,994,948 $11,994,948 $15,561,558 $13,071,714 $168,780,378

$690,887 $690,887 $544,336 $544,336 $2,470,446

$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000

$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000

$1,200,000 $1,200,000

Free Free Free Free Free Free Free Free Free Free Free Free Free

$12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $100,000

$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000

$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000

$1,950 $1,950 $1,950 $1,950 $1,950 $9,750

$60,000 $60,000 $60,000 $60,000 $60,000 $300,000

$3,600,000 $3,600,000 $7,200,000

$18,995,174 $16,928,791 $12,090,746 $14,531,798 $21,359,055 $12,022,948 $12,022,948 $18,953,660 $12,022,948 $12,022,948 $16,195,844 $13,099,714 $180,246,574

94%

1%

0%0%

1%

0%0%0%0%0%

4%

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data analysIs: SimmonS ChoiCeS 3

Simmons Choices 3 (2008) - REACHTop Websites Visited in Last 30 Days, Amongst (Target)Rank Website

NameReach Index

1 Google.com 25.7075 62.752 Yahoo.com 21.9075 82.53 MySpace.com 17.42 128.254 YouTube.com 14.48 96.255 Mapquest.com 14.395 596 Ebay.com 11.885 67.757 MSN.com 10.625 888 Amazon.com 9.5925 56.59 Hotmail.com 9.2575 94.2510 Bestbuy.com 9.0725 86.2511 AOL.com 7.9175 75.7512 iTunes.com 7.775 89.7513 Disney.com 7.7675 185.514 Ask.com 6.855 90.515 Expedia.com 6.0675 76.25

Simmons Choices 3 (2008) - COMPOSITIONTop Websites Visited in Last 30 Days, Amongst (Target)Rank Website Name Reach1 YouTube.com 11.45742 Yahoo.com 11.323 Wikipedia.com 10.83254 T-Mobile.com 9.615 Time.com 9.4356 Real.com 9.35757 NBA.com 9.28258 MyWay.com 8.95759 MySpace.com 8.852510 MyNetworkTv.com 8.68511 MSN.com 8.637512 Movietickets.com 8.062513 Movies.com 7.772514 Moviefone.com 7.72515 Monster.com 7.6075

Simmons Data Analysis:We used Simmons Data to find the top websites for Hispanics ages 18-34, with low household incomes, who have rented a DVD in the past year and have children. Using Simmons data, we found the top sites for our target market are Google sites, Yahoo, Myspace, YouTube and Mapquest. Though those five sites are the highest for our SVC by reach, we suggest only buying advertisements in the top four. Mapquest ultimately did not appeal to us because of conflicting research on how well it would reach our target audience. Other sites that stand out to us in this segment are eBay, MSN, Amazon and Ask; research from Ad Age’s Hispanic Fact Pack confirmed that these are strong ways to reach our SVC. Research looking only at sites’ user composition found YouTube, Yahoo, Myspace and MSN in the top 15 websites. Given this overlap with total reach of our target market, we believe these are sites that would be most beneficial for our advertisements.

ONLINE ADVERTISING

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Quantcast December (2010) - COMPOSITIONTop Advertised Websites, Amongst (Target)Rank Website Name Composition % Comp. Index1 lacuerda.net 11 80242 mercadolibre.

com.mx6 4068

3 univision.com 6 40294 misabueso.com 6 40035 terra.com 5 35066 gob.mx 5 32767 sonico.com 5 31908 quepasa.com 4 28949 batanga.com 4 282510 fotolog.com 3 2454

11 hi5.com 3 239012 tentaculous.net 3 223613 taringa.net 3 221414 casatatela.edu 3 90.515 espanacash.com 3 2104

data analysIs: QuantCaSt

Quantcast December (2010) - REACHTop Advertised Websites, Amongst (Target)Rank Website Name Reach %1 YouTube.com 952 Google.com 843 Twitter.com 714 Yahoo.com 635 MySpace.com 566 Wikipedia.com 537 Live.com 438 MSN.com 409 Ask.com 4010 Answers.com 34

11 Bing.com 3212 AOL.com 3113 softonic.com 2814 Microsoft.com 2715 4shared.com 27

Quantcast Data Analysis:Within the Quantcast media planner, we defined our SVC as Hispanics, ages 18-34, with a household income of $0-30K, and has children ages 0-17. Within these parameters, the above sites are most visited by our target market. Of these sites, YouTube, Google, Yahoo, MSN, Ask and Myspace will best reach a large portion of our SVC. Additionally, the top sites for our SVC by composition are all sites in Spanish. Of those listed, we suggest only advertising on Univision. Univision is the only site that appears in the top ten web properties among Hispanic users that prefer Spanish that differs from those who prefer English.1 Univision will help to reach a portion of our target market that English sites may miss. Our research also shows that our SVC is bi-cultural, feeling equally comfortable speaking Spanish and English.1 Therefore, it is not necessary to reach our SVC only through Spanish sites; research showed Spanish sites to have no increased value over English sites.1,20 We do not suggest advertising on more of these Spanish sites because of low reach and that the language is not particularly important to our SVC.

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These are other websites to reach our target market that are not listed in Simmons or Quantcast data. The first list includes television websites with the highest network viewership of Hispanics overall1. Because Hispanics are avid viewers of these different TV networks, we believe they are also likely to visit their websites to explore schedules and get more information about their favorite shows. The next set includes sites that Hispanics overall visit the most.

As supported in above and in previous sections, eBay and Amazon consistently appear as high reach sites and high composition for our specific demographic targets. This is why we suggest advertising on these sites in particular. Tagged and Facebook are top social networking sites in the Hispanic community. We suggest advertising on both social networks because of the different nature of each site. Facebook emphasizes keeping in touch with people you already know, whereas Tagged is used for meeting new people. Through our research, we have found that Latino culture emphasizes family, friends and the group over the individual. As a demographic, Hispanics are high users of social media because networking sites allow them to tap into these core values and satisfy their desire for community.21

ONLINE ADVERTISING

other sItes our svc Is lIKely to vIsIt

Top 10 Web properties among Hispanic users1

• Fox Interactive Media• EBay• Apple• Facebook• Amazon

Hispanic Social Networking Site Usage1

• Tagged• Facebook

Based on TV networks with highest Hispanic viewership1

• Telemundo• Fox• TeleFutura• ABC• CBS• NBC• CW• MyNetworkTV• Azteca America

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Online advertising plays a huge role in the marketing mix to reach Redbox’s target consumer. Hispanics are extremely active online and we want to advertise where their attention is.22 Hispanics research information online about products before purchasing them; 61 percent of Hispanics made a purchase in-store after seeing online ads while researching products.17,22 Brands cannot target Hispanics simply by having a presence online. Instead, they must make digital marketing efforts that are culturally relevant and engage in conversations with them online.21

Social media and search will also play significant roles in our marketing mix. Hispanic consumers spend a significant amount of time online. Of this time spent online, 39 percent is devoted to social networking.21

Our online advertising will strongly focus on social networking sites to actively engage in areas where our SVC is spending an abundance of time. Social networking sites offer the vital opportunity for Redbox to engage with our SVC directly and form authentic relationships with them, something the demographic strongly values.21

Search is also very important when marketing Redbox to our target audience because the site with the overall highest reach and composition for our SVC is Google. The Google Hispanic Marketing Forum found that 93 percent of US Hispanics use Google as their primary search engine17.

53 percent of Hispanics use search engines to gather information on products/shopping.22 Using paid and organic search marketing methods, we can proactively guarantee Redbox will appear where Hispanics are searching online and help lead them to purchase.

the role of onlIne advertIsIng

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• Our digital advertising efforts will maintain consistent throughout the year because our SVC is constantly online. • In the months where we have heavier pushes towards Redbox, there will be an increased amount of advertising.

These months are September, for the campaign’s launch, October for our Halloween Thriller Special, January for the commencement of the Redbox Rewards Program, April for our rainy day special and July for our “Escape the Heat” push.

onlIne Banner ads

• Hispanics are significantly more receptive to an online banner ad that is automatically tailored to their interests than non-Hispanics23

• We will target our rich media banner ads specifically to Hispanic attitudes and values like family, togetherness and enjoyment.

ONLINE ADVERTISING

socIal networKIng sItes & onlIne vIdeo

Hispanics are social media shoppers22

• 64% of Hispanics visit video sharing websites• 94% of US Hispanics who watch online video visit YouTube• 41% of Hispanics watching video leads to a purchase online

moBIle ads

Mobile will play a large role in Redbox’s marketing mix because an overwhelming percentage of Hispanic consumers actively use mobile devices for researching future purchases.22

• Hispanics are 32% more likely to have a smart phone than the general population• 93% of US Hispanics use a mobile phone regularly• 78% of Hispanics have used a mobile search engine to research something seen on TV• Hispanics are more receptive to mobile coupons and shopping offers than non-Hispanics23

tImIng

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We are targeting our advertisements to be placed on websites that have a high reach to individuals in our SVC with the following characteristics:• Hispanic• Ages 18-34• Household income <$30,000• Has children

We will target our SVC by the top cities we found to have the strongest Hispanic markets:• Los Angeles, CA• San Francisco, CA• San Jose, CA• Sacramento, CA• Houston, TX• Dallas, TX• Austin, TX• San Antonio, TX• Miami, FL• Ft. Lauderdale, FL• Albuquerque, NM• Phoenix, AZ

We will also target our online ads based on the behaviors of our SVC. Our research shows that Hispanics are extremely active online. Hispanics research information on possible purchases online before they buy them and 61 percent of Hispanics make a purchase in-store after seeing online ads while researching products.17

This consumer behavior directly aligns with renting from Redbox. We want to reach our consumers online where they research purchases knowing that they are highly likely to follow through with an in-store purchase. Therefore, our online ads will appear on popular search engines like Yahoo, MSN and Google that our SVC frequently uses to research purchases (from top 10 sites we chose based on Simmons and Quantcast).

60% of Hispanic audiences view digital marketing campaigns as worthwhile, compared to 42% of non-Hispanics31

demographIc targetIng

geographIc targetIng

BehavIoral targetIng

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Based on overall research and data, we suggest placing advertisements on:• YouTube• Yahoo• MySpace• eBay• MSN• Amazon• Google (Display Network)• Ask• Tagged• Univision

We suggest the top ten sites above because they represent a thorough mix of high reach sites as well as high site composition for our SVC, as demonstrated by the Simmons and Quantcast data above. We also suggest Tagged because of additional market research on Hispanic social networking behavior.

ONLINE ADVERTISING

onlIne sItes

onlIne advertIsIng cost analysIs

• Online advertising media buy based off the given suggestions would cost a total of: $136,229,748 • With additional purchase of advertising on Pandora, the total Online advertising cost are $138,700,194

Page 27: Redbox Interactive Media Campaign

• Our main online ad concept focuses on our overall creative idea: family entertainment.

• The ad shows a mother and child shopping in a grocery store, then introduces our slogan, “We Are Where You Are”

• Then Redbox’s convenience is carried through showing the mother renting a DVD right outside the store she was already shopping at.

• Finally, the ad closes on a Hispanic family enjoy-ing a movie together at home.

• This simple flash ad positions Redbox as a great convenient option for family entertainment.

• Another online ad promotes the newly devel-oped Redbox Deluxe Mobile App.

• The ad states different uses of the mobile app such as quickly reserving DVDs and managing rewards points.

• It goes on to emphasize the new interactive gaming features of the mobile app that allow customers to play trivia games while they watch.

• Finally the ad shows a visual of the mobile app’s simple, easy-to-navigate display.

• This online banner ad is key to our campaign integration. By promoting the mobile app online where our SVC spends a lot of time researching products and participating in social media, we will drive consumers to download the app. This will in turn encourage customers to rent more DVDs in order to use the mobile app effectively.

famIly focused Banner ad

redBox deluxe Banner ad

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Hulu is an attractive opportunity for advertising online.• Our SVC’s age group aligns with the Hulu’s highest group of audience: ages 18-3424

• Hulu’s demographic is made up of a less affluent audience, like our SVC24

• Offers a variety of rich media advertising options, which our SVC is highly receptive to23

Role of Hulu in our total online advertising plan • While Hulu would be an effective way to reach our target audience, we advise against Redbox advertising there because

of the conflicting nature of the sites’ content. Hulu and Redbox are direct competitors for user’s attention: both companies want viewers to use their service to be entertained via movies.

• Redbox commercials will promote movie-watching behavior, but it is too simple for a Hulu user to stay on Hulu’s site and just watch a movie there, instead of renting a DVD through Redbox.

• Hulu allows advertisers to integrate content into the ad buy, going way beyond a simple banner unit.• These formats are great for click through rates and message recall, but would all together not motivate users to use Redbox

instead of continuing to watch content on Hulu.

Rationale for buying Pandora.com• 64 percent of Pandora are between ages 18 and 3425. Also, 31 percent of Pandora’s

users have an average household income of less than 35K25. Although only 12 percent of Pandora’s current users are Hispanic, they have a high index number of 143, which suggests that Hispanics are more likely to use Pandora than the average consumer26. Therefore supporting our advice to advertise with Pandora.

• According to lecture, demand for online radio is expected to grow. Also, total web hours spent on Pandora are growing1.

• More than half of all Pandora usage comes from mobile1. This is a significant fact for our SVC because Hispanics are extremely active on mobile devices and would enjoy using audio streaming on their mobile phones22.

STREAMING VIDEO & AUDIO

streamIng vIdeo on hulu

streamIng audIo on pandora

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Banner Display Ads• Formats: 300 x 250, 160 x 600• We suggest that Redbox try banner display ads because Hispanics are highly receptive to online banner ads4.

Audio and Companion Display Ad• Hispanics are more receptive than the average population to all digital advertising, as long as it is targeted to them.

In this case, we would suggest Redbox place audio and companion display ads with Pandora.22,23

iPhone Banner Display Ad • Redbox should place iPhone Banner Display ads with Pandora because Hispanics are very active on their mobile

devices and are more likely than the average population to have a smart phone. Additionally, these ads can be targeted by age, gender and location, which can benefit Redbox’s advertising efforts.22,23

• Pandora ads will be less invasive than other online media ads. The consumer is already listening to Pandora so the advertiser has their attention without having to fight for it.

• Consumers are more receptive to advertising messages because they choose to use the site, knowing that they will be served advertisements in exchange for free access to Pandora’s radio stations.

• Pandora has been found to have a high impact on urban and ethnic audiences, which is beneficial to our client because we are trying to attract a Hispanic audience to Redbox.

• The interactive nature of content and advertising on Pandora’s platform increases consumer satisfaction with advertising2

• Advertisements on Pandora are not cluttered by a huge amount of other advertisements or information. This allows an advertisement’s message to stand out and have high impact.2 Additionally, listeners cannot opt out of ads or fast-forward them, so they are more likely to listen to them in their entirety to get to the next song.

suggested pandora ad formats

pandora’s competItIve edge In advertIsIng

total cost: advertIsIng on pandora

Reach/Month CPM Reach/1000 October January April July TotalBanner Display AdsAudio & DisplayiPhone Mobile DisplayTotal

20935982 $7 20,935.98 $146,551.87 $146,551.87 $293,103.7520935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.0620935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.06

$690,887.41 $690,887.41 $544,335.53 $544,335.53 $2,470,445.88

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• Search engine marketing allows Redbox advertisements to appear on search results relevant to the DVD rental service’s core offerings. The AdWords platform will help us achieve the strategic objectives in our media plan because we can use search advertisements to reach our SVC through geographical targeting with timing schemes consistent with the hours that our research proved our target audience would be online.

• Search engine marketing is an important aspect of a media plan for Redbox because our SVC obtains most of their information from search. Research from the Google US Hispanic Marketing Forum found that 93 percent of US Hispanics use Google as their primary search engine. Therefore, we are confident that by placing search advertisements using Google AdWords, our target audience is more likely to notice our ads and act on them.

• The Google AdWords platform only places advertisements on search results if they are relevant to the content being searched. Thus, in our media plan this is an effective tool because our advertising money is being spent on placements that directly relate to what the consumer is looking for. Additionally, the Google AdWords platform is based on a “pay per click” basis, so we are only charged for advertisements that an individual clicks on. This allows us to gain awareness for Redbox products without paying, as many individuals see and recognize the ads in the “paid” portion of Google’s search results, yet do not click on them. These impressions are likely to lead to more engagement with the brand; research found that having a search engine marketing campaign increases direct traffic and organic traffic to the site.33

role of sem

costs

The daily cost analysis of Redbox’ SEM marketing strategy is detailed in a chart in Appendix D. The average CPC for the suggested keywords is $0.85. With the estimated daily traffic, the average daily cost per keyword is $124.65. With this suggested strategy, we realize our daily SEM budget of $100 will max out very quickly because these keywords are expensive due to competitive demand. However, we still suggest purchasing all of these keywords because it is essential for Redbox to appear on the first page of search results in such a competitive market because 60% of searchers click one of the first three organic search results.38 If Redbox fell off the first page, its targeted consumers could default to a competitor instead.

SEARCH ENGINE MARKETING

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We split our Google Adwords Campaign into four distinct ad groups to best target ads to the searchers they are most relevant to. Each ad group has specific advertisements and ad copy tailored to what the consumer is most likely searching for and interested in.

93% of US Hispanics use Google as their primary search engine17

google adwords ad groups for redBox

• Family Movie Night: Relating to affordable family entertainment• Movie lovers: Relating to new releases and genres of movies • Cheap, affordable convenient: Basis of Redbox offerings for DVD/Blu-Ray rentals• Redbox Deluxe Mobile app: Informing people of ways to enhance their movie watching experience

with the new Redbox app

To make sure our keywords best matched what consumers search for, we included common misspellings and variations of Redbox such as “Red box” and “Red-box.”

Negative keywords:• “Buy”: Redbox does not allow individuals to buy the DVDs or blu-rays• “Stream”: Redbox does not currently have streaming options• “Pirated”: Redbox does not want to attract attention from individuals who pirate films, as that risks their films

being burned and copied in the future

Competitive:• We conducted a variety of searches to see what search strategies Redbox’s competitors are using. This showed

us that it is important to include specific titles of new releases as keywords. For example, “Black Swan” is a popular new DVD release. When searching “Rent Black Swan” and similar variations, competitors such as Netflix appear at the top of the paid search results. We suggest that Redbox buy keywords that relate to the specific movies that are within the kiosk that month. Because this media plan is setting strategies for the year to come, we did not include these specific film titles in our keyword list because it is impossible to tell when DVDs will enter/leave the Redbox.

• Instead, we decided to build on this strategy and suggest that Redbox buy keywords related to movie genres. For example, if an individual is looking to rent a comedy they may search “comedy DVD rental.” Buying these keywords ensures Redbox will appear on the paid search results. Netflix also uses this strategy, so we have included a specific list of movie genre related keywords to our list to make sure that Redbox has a role in this competitive space of DVD rentals.

google adwords campaIgn tactIcs

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Redbox Rewards Program:

Redbox Deluxe Mobile App or Movie Lovers:

General Target - Convenience for Families:

SEARCH ENGINE MARKETING

search engIne marKetIng advertIsements

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To ensure that Redbox paid search ads are reaching the desired audience, we have chosen to geographically target the ads in cities where Redbox kiosks are readily available and the population is made up of strong Hispanic markets. Therefore, the 12 cities are:13,14

Time of Day

• Based on Simmons Data, our SVC is most likely to use the Internet between 9 a.m. and 4 p.m. They are equally likely to be on the Internet during these hours at home and at work on weekdays. During the week, our SVC is highly likely to be on the Internet at home between 7 and 11 p.m.

• On weekends, Internet use is high throughout the day at home, from 9 a.m. to 7 p.m. While our target is also likely to be on the Internet from 6 to 7 a.m., Simmons data shows that Internet activity during those hours rarely leads to a purchasing decision.

• We plan to schedule our search advertisements heavily throughout the workday, from 9 a.m. to 4 p.m. This coincides well with current Redbox trends of rentals most often taking place between 4 and 9 p.m. (26).9, 10, 17

Time of year/SeaSonaliTy

• Search is a very important of how our SVC obtains information and learns about products they want to buy.27 We feel that it is essential that a Google Adwords campaign runs all year round and that the ads stay current to reflect the various promotions and specials we are running throughout the media plan. For example, for our Halloween Thriller Special, the ad copy and keywords bought will include more information about scary movies, thrillers and Halloween entertainment. During these months, the amount spent per day will not change, instead a specific ad group (includes individual keywords and advertisement) will be added to the campaign to relate to current promotions and specials.

sem marKetIng & targetIng

sem tImIng ratIonale

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Landing Page – Redbox Rewards Program• Highlights the points-system of the rewards program so users can see the value of joining the program• Has a registration form for easy, access to becoming a rewards program member• Provides an incentive to sign up: “Earn points towards free DVD rentals,” “Receive monthly deals and discounts”

SEARCH ENGINE MARKETING

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Landing Page – Redbox as a service• Benefits of using Redbox are clearly displayed in quick, easy-to-read bullet points• User can type in their email to receive a coupon for a free rental and to receive the Redbox newsletter• A button to “look in the Redbox” and see a visual representation of what movies are currently in Redbox kiosks• “We are where you are”• Make the message of this page match up with our creative “big” idea. Show how Redbox kiosks are located in

convenient places near where people run their everyday errands.

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Search engine optimization will connect individuals who are interested in movies, DVD rentals and family entertainment to Redbox. Using SEO tactics to help Redbox.com rise to the top of organic search results will help raise brand awareness for the Redbox website and help it reach potential customers. This is essential to Redbox’s media plan because the competitive market for movies/DVDs is particularly competitive right now as various services are beginning to stream popular movies for low monthly fees.

SEO is unique in the overall media strategy because it will help reach a broader audience of “movie watchers,” whereas other advertising tactics like SEM, digital media, or mobile ads deliver specific messages to segmented targets. We also want Redbox to rise above its competitors in organic search so non-aware consumers are exposed to its offerings and aware consumers are reminded of its value.

SEARCH ENGINE OPTIMIZATION

analysIs of redBox.com

Content

• Redbox.com provides relevant information for consumers: with one click customers can browse all movie and video game titles, narrow their search by genre, type of disc, most popular, or see what titles are coming soon.

• Redbox emphasizes its main selling points right on the home page. Across the top of the main page Redbox publicizes its reserve online feature, pricing strategy, and rent and return anywhere policy. Having these features posted right at the top of the home page reminds customers of why Redbox is the best option for affordable DVD rentals.

• Redbox.com showcases new releases on the homepage in a very eye-catching way. The rich media banner scrolls through a few of the new arrivals with vibrant images and a quick synopsis of the movie, which is useful to the customer.

• Although the newest arrivals appear on the home page, natural searches of these titles bypass the home page and link straight to a specific landing page dedicated to each movie.

Site Structure

• Page Titles: Method that helps websites move up on search engine results is strong page titles that reflect top keywords.27 Redbox should revise its page titles to include works that potential customers will search for and that relate to factors that differentiate its service from competitors.

• Links that highlight different features current link to the same landing page. We feel this is a lost opportunity to push specific information to consumers based on what they are looking for on the site.

role of seo

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Navigation

 

 

Design

• The design for Redbox.com is very clean and simple.• No clutter allows for easy viewing and navigation• It is easy to navigate with clearly labeled tabs.• There is a lot of white space, which helps the iconic Redbox red color stand out.

Top 30 linking domains to Redbox.com:32

1. nytimes.com2. google.com3. Wikipedia.org4. Oracle.com5. Twitter.com6. Wired.com7. msn.com8. constantcontact.com9. time.com10. techcrunch.com11. zdnet.com12. cnet.com13. Netflix.com14. Yahoo.com15. Latimes.com16. Engadget.com17. Businessweek.com18. Go.com19. Posterous.com20. Mashable.com21. Wellsfargo.com22. Arstechnica.com23. Salon.com24. Earthtimes.org25. Tumblr.com26. Wordpress.com27. Fastcompany.com28. Surveymonkey.com29. Prnewswires.com30. Fool.com

*These linking domains show high quality in Redbox.com’s inbound links.

analysIs of redBox.com

Inbound Links

• It is essential that visitors are able to quickly find the content they want, and that Google’s Webmaster can identify which information is most important and relevant on the site.27

• Redbox.com has a very organized and understandable navigation. The main three segments (reservations, rentals and returning DVDs) relate to Redbox’s core offerings.

• A visible and well-placed search bar allows consumers to search any movie or game title from any page to help them quickly find the movie or information they are looking for.

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SEARCH ENGINE OPTIMIZATION

analysIs of redBox’s current seo efforts

Search Term

“rent DVDs” “rent new releases” “affordable DVD rentals”

“blu ray rentals” “easy movie rental” “DVD rental”

Results in Order

1. Blockbuster2. DVD Avenue3. Netflix4. Redbox5. Blockbuster Express

1. Blockbuster, rent new release downloads2. Blockbuster, new releases to rent3. Blockbuster.com4. Myvideostore.com5. Moviefone.com

Redbox appeared at #7Netflix appeared at #8Blockbuster appeared four times on the first page of natural search results

1. Redbox2. Netflix3. DVDRentalDeals.com4. AllDVDRentals.com5. Moneysavingex-pert.com

1. Blue-rayren-tal.com – block-buster2. Blue-rayren-tal.com – etflix3. Netflix4. Blockbuster5. Engadget article

1. Blockbuster.com2. Easycinema.com3. Drjennsden.com Blog4. Blockbusterexpress.com5. Movierental.com/itunes

1. Netflix.com2. Blockbuster.com3. Dvd-rental-review.com4. Redbox.com5. Imdb.com

Neither Redbox nor Net-flix appeared on the first page of results

93% of U.S. Hispanics use Google as their primary search engine17

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Redbox’s main competitors, Blockbuster and Netflix, appear in many organic searches alongside Redbox. Blockbuster excels with keywords such as “rent new releases” because it receives new movie titles 28 days before Redbox or Netflix.

Blockbuster also appears first with “rent DVDs,” but Netflix and Redbox are not far behind. However, “dvd rental” pushed Netflix to the top, followed by Blockbuster and Redbox. These general keyword searches show that Redbox can contest with its competitors in organic search, but they do not override them.

Redbox rises above Netflix and Blockbuster when searching “affordable DVD rentals.” This aligns with Redbox’s superior price benefit over its competitors, however Redbox should put more emphasis on its convenience benefit and family value.

In order to capture Redbox’s affordability, convenience and family value in organic search, we suggest Redbox add the following keywords to their website in order to separate themselves more uniquely from their competitors:

• affordable DVD rentals• family entertainment• family fun• rent family movies• convenient DVD rental• easy DVD rental• kids DVD rental• kids movie rental• family movie night• cheap DVD rental

• inexpensive family entertainment• dollar DVDs• rent DVDs for a dollar• rent DVDs for $1• rent DVDs for one dollar• DVD rental where you are• rent DVDs on the go• DVD rental on the go• movie rental on the go• family movie

seo competItIve analysIs

seo Keyword recommendatIons

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role of moBIle

An overwhelming percentage of Hispanic consumers actively use mobile devices to research future purchases. By purchasing mobile search engine advertisements Redbox can reach their target when they research product information on their mobile device, wherever they are.

Hispanics are significantly more likely to have a smart phone than the general population. Rich media ads, mobile coupons and location-based mobile strategies prove to be effective media to reach the target audience.

Redbox should utilize mobile search advertisements because a vast majority of Hispanics use search engines, specifically Google, on their mobile phones to find product information.

Hispanics are highly receptive to banner display ads and are more likely to interact with advertisements than the average population.17 Utilizing display ads targeted specifically to our Hispanic target market will grab their attention and help make a positive connection between the consumer and the Redbox brand.

Buying video pre-roll advertising before movie trailers is an effective mobile marketing tactic for Redbox. When an individual searches for a movie on their phone and watches the short trailer, Redbox will serve a video preroll advertisement that emphasizes how quick and easy it is to reserve a movie by accessing a Redbox kiosk. The ad will also include a link to a mobile search showing where the nearest Redbox kiosk is to their location.

MOBILE ADVERTISING AND PROMOTIONS

Hispanics maximize mobile media.17

• Hispanics are 32% more likely to have a smart phone than the general population• 78% of Hispanics have used a mobile search engine to research something seen on TV• 93% of U.S. Hispanics use Google as their primary search engine• Hispanics are more receptive to mobile coupons and shopping than non-Hispanics

ratIonale

IntegratIon

Page 41: Redbox Interactive Media Campaign

• Redbox will launch its mobile campaign in 12 target market cities for four weeks starting at the beginning of September during our campaign’s launch.

• The Mobile Budget inclues 12 markets x $100,000 for 4 weeks = $1,200,000 Total• Although we suggest going over the $1 million budget by $200,000, we think the extra money will be well

worth it for Redbox because our SVC is so active on mobile devices.

BudgetIng

We chose to advertise on mobile devices in 12 markets: Los Angeles, San Francisco, San Jose, Sacramento, Houston, Dallas, Austin, San Antonio, Miami, Ft. Lauderdale, Albuquerque and Pheonix. These markets are the strongest Hispanic markets in the country, have easy access to Redbox kiosks and best target our SVC.

geographIcal ratIonale

We suggest Redbox use mobile as a marketing tactic during the first four weeks of the campaign to begin personally connecting with the new target audience. Since mobile phones are a very intimate medium, we suggest only serving mobile ads for one month before moving on to a different medium that is less intrusive. We still want Redbox to consistently connect with its clients via their mobile devices, but we want it to be their choice after our initial ad serve.

tImIng ratIonale

93% of U.S. Hispanics regularly use a mobile phone17

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Foursquare is a location-based social networking website built specifically for mobile devices with GPS capabilities. Foursquare users can “check in” at a venue through the Foursquare website, text messaging or through a device-specific application. Foursquare awards users points, badges and “Mayor” status as incentives for actively checking in. The service was developed to help consumers interact with their environment and connect with friends that are nearby. Now it has become a great marketing tool for retailers everywhere.

One of our Advertising Objectives is to increase brand engagement of Hispanic users online, as measured by interactions with Redbox’s integrated media strategy.

Foursquare will help Redbox deliver on this objective because of its unique physical and digital interaction with brands. By physically going to a Redbox kiosk and “checking in” to their Foursquare account, consumers have interacted with Redbox in two ways.

If Redbox customers receive benefits for checking in on Foursquare, like promo codes or coupons, it will encourage them to continue interaction with Redbox through this location-based social network.

LOCATION-BASED ADVERTISING AND PROMOTIONS

overvIew of servIces

role of locatIon Based advertIsIng

Page 43: Redbox Interactive Media Campaign

• Receive a free DVD on your fifth check in at a specific Redbox kiosk• Redbox Rewards members will earn points towards DVD deals by

checking in to Redbox kiosks• Earn points towards a free DVD for visiting multiple kiosks in a year• Receive badges for renting more than one movie at once• Earn points for returning your DVD on time

executIon

redBox can delIver IncentIves to get people to checK In at KIosK

Consumers are physically going to a Redbox location and then digitally connecting to receive benefits from the brand. It creates a give-and-take relationship between the consumer and the brand.

• Every time someone checks into a Redbox kiosk, their followers on Foursquare (and Twitter and Facebook if they so choose) will see that they rented a movie from Redbox.

• This increases individuals’ awareness of Redbox and may motivate non-users to check it out for themselves.

foursquare maKes goIng to a KIosK more of an experIence

foursquare helps Increase awareness through sharIng capaBIlItIes

Hispanics are 2.5 times more likely than the average population to use location-based services36

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• Once you have rented a movie from the Redbox Kiosk and are ready to watch it, the app comes prepared with a special viewing experience. Each DVD’s sleeve will be marked with a QR code. Select the “watch” part of the app and it will ask the user to scan the QR code. This ensures that the in-app viewing experience will only work with DVDs rented through Redbox Kiosks.

• Next, the user’s screen will display a play button. Once you are ready to start the film, hit play on the app at the same time as they start the movie. Throughout the movie, facts about the making of the movie, the characters, the actors, the scene and more will pop up to enhance your viewing experience.

• This feature of the app will name the song that is playing and provide lyrics and an option to buy the song in iTunes.• If a particular quote stands out to you, hit the “quote it” button to have the app save the quote for you. Additionally, if you couldn’t

understand or hear a line, hit the “recap” button for a text-based script of the last minute of the movie.• The app can also be linked to a user’s Facebook, Twitter or Myspace accounts so they can update their statuses with their

thoughts about the movie and their movie-viewing experience.

The Redbox Deluxe Application is the best way for consumers to maximize their DVD rental experience. The app breaks down into three main sections: you, game and watch.

REDBOX DELUXE MOBILE APP

you

• Find your nearest RedBox Kiosk• Keep up-to-date with your membership status and number of points you need to get a free rental• Manage all coupons and special offers from Redbox• Search for movies within your preferred kiosks and reserve them• View past rental history, current rentals and reminders of their due dates• Recommendations of movies that are currently in Redbox kiosks based off movies and genres you like

game

• Play movie trivia games against the device, “pass and play” with a friend in person, or play virtually against other Apple Game Center members

• View current challenges from Game Center players• The movie trivia game includes:

• By answering trivia questions correctly and winning games, users can earn points and badges. The points can be used to receive free movie rentals from Redbox Kiosks and the badges are for users to share on social media platforms to show off their movie smarts.

• Trivia questions based on scenes, quotes, characters and plot from Redbox movies. The app will be updated with new trivia questions each month so the questions correspond with the movies currently in kiosks

• Trivia questions based on scenes, quotes, characters and the plot from a specific Redbox movie to capitalize on the post-movie watching experience

watch

Page 45: Redbox Interactive Media Campaign

• Capitalizes on the fact that consumers want to be social, play games with content they enjoy, and obtain more information while they are watching a movie.

• Consumers crave the experience of moving forward in games and achieving the ever-higher rank; this app utilizes this information by offering badges users can win, points that can be used towards rental movies and frequent updates to keep adding new levels and trivia questions.28

• 86 percent of mobile Internet users are active on their devices while watching TV. This proves that users are already multitasking while watching a television show or movie, so offering an in-app viewing experience is a feature that they are likely to use and enjoy.29

• The best viewing and gaming experience for movie lovers: a whole new way to experience Redbox. • Redbox equals all-around entertainment. Redbox is not just about renting and watching movies. It’s about interacting

with your entertainment and including family and friends in the fun. The mobile app helps squeeze every bit of fun out of a dollar purchase.

• Hispanics ages 18-34. They are 32 percent more likely to have a smartphone than the general population, they regularly use their mobile phones and they are more receptive to mobile coupons and offers than non-Hispanics are.

• Large families with low-medium household income• Enjoys spending time with family, watching movies, playing games, using mobile devices and socializing on and

offline. • Current Redbox users, current Apple Game Center members, movie lovers, individuals who already own the original

Redbox iPhone app

• Search Engine Marketing: Use search ads that link to a landing page to read about and buy the mobile app.• Rich media banners and side box online advertisements: Placement on websites where the target audience already

is. Also, heavily advertise on social sites since the app has social features and benefits likely to appeal to someone already active on a social networking site.

• Promoted Tweets and Promoted Accounts on Twitter: Generate attention through a RedboxDeluxe Twitter account and a promoted tweet highlighting that the app allows users to maximize their movie watching experience.

app’s value

app’s Key message

app’s target marKet

marKetIng for app

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Advertising on Facebook gives Redbox the opportunity to connect with individuals based on their interests. Redbox advertisements will display in the sponsored section of Facebook for users who are more likely to be movie-lovers based on their activity within the social networking site. Redbox advertisements could appear on pages relevant to the target audience and DVD rentals, such as a fan page for a new release.

When buying advertising space on Facebook, the client has the unique opportunity to target people of a specific age group, geographical region, interest groups, ages of children and more. Redbox should target the SVC: Hispanics ages 18-34 with young children who are interested in movies and entertainment in select Western and Southern cities.

September: Campaign Launch and Hispanic Heritage MonthOctober: Halloween Thriller CampaignJanuary: Introducing Redbox Deluxe App and Reward ProgramApril: Rainy Day Special CampaignJuly: Escape the Heat Movie Specials

KEY MONTHS:

SOCIAL MEDIA

paId faceBooK

Page 47: Redbox Interactive Media Campaign

We suggest Redbox buy Facebook advertisements during key months throughout the year when special campaigns are being run. During these months, the ad copy will raise awareness for the current campaign and drive traffic to the website for more information about the specials.

September: Campaign Launch and Hispanic Heritage MonthOctober: Halloween Thriller CampaignJanuary: Introducing Redbox Deluxe App and Reward ProgramApril: Rainy Day Special CampaignJuly: Escape the Heat Movie Specials

Based on the targeting options chosen, Facebook suggests that Redbox’s bid is $1.31 per click. Therefore, we suggest a budget of $65 per day to allow up to 50 clicks daily. The cost for Facebook advertisements for the five selected months will be $9,750.

BenefIts/ratIonale of non-paId faceBooK: Facebook is within the top ten Web properties among Hispanic users.35 It is a social media space that our SVC uses frequently, which is why we suggest Redbox have a strong presence on this site in different ways. Facebook offers many different paid and unpaid options for advertisement and promotion, which Redbox can customize to specifically target the values and interests of our SVC.

faceBooK’s non-paId role In our plan:Facebook will be a big tool for integrating our overall advertising plan. Redbox can use its Facebook Fan Page to promote new DVD releases, deliver deals to “fans,” and encourage Redbox fans to join the loyal customer rewards plan. Our Facebook fan page can also promote our new Redbox Deluxe mobile app for users that want to enhance their experience with Redbox even more. The Facebook fan page is a great tool to drive awareness toward our advertisements on other platforms as well as encourage consumers to share Redbox deals and promotions with friends and family.

non-paId faceBooK tImIng:Redbox’s existing Facebook page already has over 2.6 million ‘likes,’ which is a very successful reach. We hope to increase this number with our interactive media plan. The Facebook page will be a constant non-paid, media platform used to promote Redbox all year long. We will commit to posting on the page at least once a day bringing fans information on the newest releases, promotions, coupons or customer contests. Also, Redbox will customize its Facebook posts according to the promotions of each season to inform customers of the new seasonal deals.

Hispanics are more likely to use social media sites than any other demographic21

paId faceBooK tImIng ratIonale

paId faceBooK cost

non-paId faceBooK

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48

SOCIAL MEDIA

faceBooK ad Buy

Benefits/Rationale of Twitter:Twitter is another great social network to deliver information to customers as well as allow them to share information with others. Twitter is unique to other social mediums because once a user chooses to “follow” Redbox, then any tweet that Redbox submits will automatically show up on the users’ home screen. This ensures that our messages will directly reach consumers interested in renting our DVDs.

According to QuantCast data, advertisements on Twitter reach 71% of our target market (QuantCast Data). Although paid Twitter advertising will be discussed later, this shows that Twitter overall will be a great way to reach a high percentage of our SVC.

twItter non-paId

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Twitter’s Role:Twitter will be a great way to push out quick messages to our customers on a daily basis for free. Redbox can tailor each tweet specifically to special promotions of that day, week or season and drive awareness of new releases. Twitter is also a great platform to encourage interaction between brand and consumers. Redbox can use tweets to ask its customers what they would like to see from the brand. For example, Redbox can tweet young moms asking them how they like to entertain their families to drive interaction with their SVC. Redbox can also re-tweet posts from movie stars and directors of the movies that appear in Redbox kiosks. Twitter allows instant customization of messaging and is one of the most beneficial platforms for interacting directly with consumers.

Timing: Redbox currently has a Twitter account with over 24,000 followers. We want to keep this page active by tweeting Redbox promotions on a daily basis all year long. We will commit to tweeting at least once a day bringing fans information on the newest releases, promotions, coupons or customer contests.

Promoted Tweets:• Promoted tweets appear in the Twitter timeline in the same exact format as regular tweets, with a “promoted” banner on them.

Twitter displays promoted tweets to users who they believe will find the tweet relevant, effective targeting your market for you30

• When Twitter users search for specific keywords that are within the promoted tweet’s content, the promoted tweet will appear in their search results. Twitter users can interact with a promoted tweet as they would any other tweet. This makes promoted tweets highly shareable: users can retweet them, mention them in tweets to others and mark them as their “favorite” tweet.”

• Works on a cost-per-engagement basis; the company paying to promote a tweet only pays when a Twitter user retweets, replies to, clicks on or favorites the promoted tweets. The cost-per-engagement basis means that the company promoting the tweet does not pay for impressions, so they are gaining more awareness than only those who engage with them.

Promoted Trends:• Client can sponsor one of the “top trends” that will appear on the right side of a user’s Twitter page under “top trends”• When a Twitter user clicks on the promoted trend, they will see a real-time conversation thread of tweets related to that trend• Provides exposure for the client and the message behind the trend• Generates conversation about the client’s brand

Promoted Accounts:• Helps build a strong base of Twitter followers for the client• Recommends the promoted account to relevant users who are more likely to be interested in that Twitter handle• Based on similar followers and similar interests• Makes attention for client’s Twitter handle and as they generate more followers, more people will talk about them, actively

enhancing brand awareness.

twItter non-paId

twItter paId

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50

Digital out-of-home advertising reaches consumers digitally on devices that are not owned by them or in their home. This does not include any advertising on personal televisions, PCs, tablets and mobile phones. Any screens other than those just listed would be considered digital out of home.

For example, an interactive digital screen showing features of a product in the middle of an aisle at the grocery store. Digital billboards are another great example of digital out of home, as they display videos, images or interactive segments targeting consumers outside of their home.

DIGITAL OUT-OF-HOME

overvIew

Digital out of home advertising catches consumers’ attention during their everyday activities. Digital out of home advertising provides the opportunity to interact with consumers in an entertaining way that adds value and/or entertainment to whatever they are doing in the place where your advertisement exists.

Ads are targeted to a specific audience and what that audience is likely to be doing near the placement of the ad. Digital out of home advertisements should take into account the target’s interests, shopping habits and lifestyle behaviors when choosing a placement and creative idea for their ad.34

how It worKs

Digital out-of-home advertising can be well received by almost all audiences. Research showed that advertisers can use this medium to target almost any demographic or socio-demographic group37.

The advertising must fit in with the environment it is placed in and relates to the audience in a logical way. Digital out of home advertising is a great way to reach people who are often on-the-move and are less likely to be sitting at a computer or television screen all day34. This is a great match for Redbox’s target audience because they are proven to be extremely technologically savvy and enjoys interacting digitally.

dIgItal out-of-home & our svc

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• Redbox will use digital out of home advertising to emphasize the creative message of “we are where you are” by literally appearing in places where our target audience is in a way that generates attention for the convenient, family-oriented nature of Redbox’s DVD rental service.

• Redbox will place interactive digital screens in different aisles throughout the grocery store. For example, near the assortment of frozen pizzas, the screen will say “having a pizza dinner night? interact with Redbox to find the perfect movie to pair with your meal.” Individuals can then use the interactive interface to see what movies are in the Redbox kiosk and will go well with their intended mood of the evening.

• Redbox will also have screens at gas stations with interactive movies quizzes, entertaining individuals as they wait for their tank to fill with gas and highlighting the convenient, affordable nature of Redbox. The screens will also show how close the nearest Redbox is, and help people see how the DVD kiosks are where they are.

• Timing: Redbox should use digital out-of-home advertising in the beginning of campaign to increase awareness for Redbox as a service.

executIon

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plan prIorItIzatIon

Medium Rationale1. Online Advertising

• Our SVC is extremely active online and uses the Internet to obtain the majority of their information. Advertising online allows us to target our placements to sites where we can feel confident that our SVC spends time online.• Hispanics are more receptive to online advertising than any other demographic. Therefore we can target them on sites they will be on and know that they are likely to pay attention to them.

2. Mobile Advertising & Promotion

• Hispanics use mobile more heavily than any other demographic. Having mobile advertising and mobile promotions enables us to reach them in a platform they are familiar with and enjoy interacting on.• Mobile advertisements allow us to include a direct call-to-action. By incorporating text promotions to video-pre-rolls on mobile video apps, our SVC is likely to engage with Redbox directly after seeing it.

3. SEO • Search engine optimization is very important. Our SVC searches the Internet to obtain the majority of their information. It is important for Redbox to appear high in search results, as 60 percent of clicks come from the top 3 links listed in organic search results. • SEO efforts will help raise awareness for Redbox, especially among non-aware consumers. When they are searching for information about movies and DVD rentals, Redbox should appear towards the top of the organic search results and grab their attention.

4. SEM • Search engine marketing is an effective marketing tactic for our plan because it allows us to connect people with the information they are directly looking for.• Ad groups allow us to tailor our ad copy and keywords to ensure that the ads served are relevant to the searcher.• This medium is cost-per-click so we are likely to raise awareness through impressions, even when individuals do not click on the ad.

5. Digital-Out-of-Home

• Digital out of home will allow us to reach our SVC in the offline world. Having interactive and entertaining advertisements in places where our SVC is likely to be will generate attention for our campaign’s launch and start a positive, authentic relationship with our target audience.• Digital out of home is a way to directly show our SVC the value Redbox has to offer in their lives. Additionally, by strategically placing digital out of home in areas that are very close to a Redbox kiosk, consumers can act on their impulses and head straight to rent a movie.

CAMPAIGN SUMMARY

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Medium Rationale6. Mobile App • The Redbox Deluxe Mobile App allows us to reach out to a broader audience and reach movie lovers

and gamers.• The mobile app adds a unique quality to the movie watching experience, as well as more value to Redbox as a brand.• The mobile app is a great way to penetrate our existing market even further by providing an extension of Redbox’s services, but it is a limited medium for reach new consumers who have never used Redbox before, which is why it is ranked lower in our overal plan prioritization.

7. Location-based Advertising & Pro-motion

• Location-based advertising and promotions support our target market’s heavy use of mobile because it is an on-the-go medium.• Through location-based services, Redbox can offer timely and relevant incentives based on the geo-tracking capabilities of mobile devices and acutely target individual consumers to make the best of each individual experience with Redbox.

8. Streaming Audio • Advertisements on Pandora reach over 20 million people in our target market each month.• Also, Pandora consumers are required to listen to audio ads before returning to their music station, therefore we know our ads will effectively reach the audience.• Hispanics are receptive to advertisements that speak to their core values and interests. By reaching our SVC through Pandora, Redbox connects with another one of their favorite entertainment mediums.

9. Facebook Advertising

• Our SVC are very active on social media sites, which gives Redbox an opportunity to engage in authentic conversations with their consumers. Redbox can follow the interests of their consumers on a daily basis and connect with them to show loyalty and support of their values.• Facebook ranks lower in our suggested plan prioritization because Redbox currently has a successful presence on the site. We want to maintain and even improve Redbox’s social media role, but it will not be a large change from its existing stratgy.

10. Twitter Advertising

• Promoting our brand on Twitter ranks lower on the plan prioritization because it is a fleating medium. Tweets do not have a high staying-power, but they are free and can be updated at any time, several times a day.• The new Twitter promotion tools are still so new that it is hard to tell how receptive Hispanics will be. At this point, these new Twitter promotions will be treated as a trial run.

11. Streaming Video

• We do not think advertising on video streams is smart for Redbox because we would be advertising our brand on competitive mediums, which is why we recommended not to advertise with Hulu at all.

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summary of overall campaIgn IntegratIon

CAMPAIGN SUMMARY

The entire media plan for Redbox revolves around the idea of “We are where you are.” This tagline encompasses the core value Redbox kiosks offer: they are readily available at convenient locations where consumers already run their daily errands. This aligns with our SVC market because research found that brands must target Hispanics specifically and directly, focusing on locations they frequently visit on and offline as well as emphasizing their core family values. In addition to geographically being where our SVC is in terms of shopping and daily activities, we applied this message in terms of the online world as well. Studies show that Hispanics are extremely active on social networks and gain all their information from the web.

The key insight from this plan came from research showing that convenience and family togetherness are two values that Hispanics most highly regard. Both of these values are strongly represented in Redbox’s key offers and the tagline “We are where you are.” Throughout the media campaign, Redbox will target Hispanics in a way that shows how easily they can achieve the perfect source of family entertainment -- a family movie night -- for only one dollar per night.

Our messaging applies to each medium in an appropriate way, while successfully linking across different media. For digital out of home, we wanted to emphasize convenience in the strongest way possible. By placing “we are where you are” interactive stands in grocery store aisles and suggesting what movie goes well with the meal they are buying, we are engaging with the SVC in a way that highlights how easy it is to plan a family movie night with Redbox.

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We split our search advertisements into specific ad groups to tailor our message exactly to the consumer’s search. For example, a mother looking for an inexpensive way to entertain her family on the weekend searches for “cheap family fun” and a Redbox paid search ad appears on the right hand side of the organic search results. When she clicks on the ad, she is directed to the Redbox landing page that explains how easy it is to plan a family movie night and prompts her to enter an email address to join the Redbox Rewards Program. With one search term, our consumer connected with our website and joined the Redbox Rewards Program, which will continue her relationship with the brand.

Similarly, our mobile app and mobile advertising connect with Hispanic consumers in a way that sparks a conversation, generates attention and relates back to the core messaging of “we are where you are.” Our mobile video pre-roll advertisements will serve ads related to promotions and the Redbox Deluxe App. An individual watching a trailer for a new release on his phone will be exposed to a Redbox pre-roll ad informing him about the value of the Redbox Deluxe App. Intrigued, he clicks the ad for more information and is able to download the app immediately. He then can quickly find his nearest kiosk, reserve DVDs, play games related to the movie with his Apple Game Center friends and update his social networking sites with his high scores.

The suggested strategic interactive media campaign links each medium with one cohesive creative idea that personally targets our SVC. With extreme integration throughout, this plan not only reinforces Redbox’s core concepts, but connects each medium in complementary ways.

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Appendix In order of appearance

1. New York Times, “Movie Studios See a Threat in Growth of Redbox,” Sept. 6, 2009 http://www.nytimes.com/2009/09/07/business/media/07redbox.html?_r=1&ref=technology2. LA Times, “DVD rental revenue falls, delivering another blow to home entertainment business,” April 15, 2010http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/04/dvd-rental-revenue-falls-delivering-another-blow-to-home-entertainment-business.html3. Seattle Times, “Redbox DVD rental success overshadows parent-company Coinstar,” June 7, 2010 http://seattletimes.nwsource.com/html/businesstechnology/2012034388_redbox06.html4. Home Media Magazine, “Coinstar Posts $11.7 Million Profit, Redbox Market Share at 30%,” Feb. 3, 2011 http://www.homemediamagazine.com/financial/coinstar-posts-117-million-profit-redbox-market-share-30-218965. Bloomberg Businessweek, “Redbox Plots Web Strategy in Challenge to Netflix,” July 19, 2010 http://www.businessweek.com/news/2010-07-19/redbox-plots-web-strategy-in-challenge-to-netflix.html6. Redbox Website redbox.com7. New York Times, “Few Releases,” Oct. 23, 2009 http://www.nytimes.com/2009/10/25/magazine/25fob-consumed-t.html?_r=2&scp=1&sq=redbox&st=cse8. Ad Age, “Redbox - America’s Hottest Brands 2010 http://adage.com/article?article_id=1470569. Simmons/Choices 3 Database10. Fast Company, “Little-known Redbox proves the power of in-between technology,” July 1, 2009 http://www.fastcompany.com/magazine/137/tech-edge-box-tops.html11. Netflix. www.netflix.com12. New York Times, “When the price is right, the future can wait,” July 11, 2009 www.nytimes.com/2009/07/12/business/12digi.html13. Hispanic Magazine, “The Top 10 Cities for Hispanics,” http://www.hispaniconline.com/HispanicMag/2008_08/Feature-Cities.html14. Hispanic Business Network, “Top 40 Hispanic Markets” http://coloquio.com/english/hcities.html 15. Bill Gates Foundation, “Low Hispanic College Graduation Rates Threaten U.S. Attainment Goals,” March 18, 2010 http://www.gatesfoundation.org/press-releases/Pages/american-enterprise-institute-study-shows-low-hispanic-college-graduation-rates-100318.aspx16. QuantCast Data for Redbox http://www.quantcast.com/redbox.com17. Google Hispanic Marketing Forum, “Four Truths about US Hispanics Online”, Jan 26, 2011 http://www.youtube.com/user/GoogleBusiness#p/u/1/ur8qd1p6TJ8 18. Retail Customer Experience.com, “Report: Hispanic shopping habits more seasonal than most,” September 15, 2010 http://www.retailcustomerexperience.com/article/140183/Report-Hispanic-shopping-habits-more-seasonal-than-most19. Hispanically Speaking News. “National Hispanic Media Coalition to Honor Director Robert Rodrigues and Others,” Feb. 7, 2011http://www.hispanicallyspeakingnews.com/notitas-de-noticias/details/national-hispanic-media-coalition-to-honor-director-robert-rodriguez-s/5077/ 20. Seeking Alpha, “DVD rental market remains brutally commoditized,” Jan. 18, 2011. http://seekingalpha.com/article/246942-dvd-rental-market-remains-brutally-commoditized21. Bloomberg Businessweek, “Wal-Mart, Target Put Squeeze on Redbox,” Feb. 20, 2010. http://businessweek.com/technology/content/feb2010/tc2010022_125668.htm22. Exact Target. “Redbox: Using email to drive blog traffic” March 5, 2009. http://blog.exacttarget.com/blog/jeffrey-rohrs/redbox-using-email-to-drive-blog-traffic23. Tech Marketers “The Redbox Effect - A winning marketing strategy” http://techmarketers.wordpress.com/2009/07/15/the-redbox-effect-marketing-strategy24. Moviefone “Blockbuster’s new 28 days marketing strategy backfires,” Dec. 17, 2010 http://blog.moviefone.com/2010/12/17/blockbuster-28-days-rental-backfires/25. Seattle Times, “Redbox DVD rental success overshadows parent-company Coinstar,” June 7, 2010. http://seattletimes.nwsource.com/html/businesstechnology/2012034388_redbox06.html26. Email Aptitude, “Redbox leverages email marketing,” May 29, 2009 http://www.emailaptitude.com/blog/analysis-of-live-emails/redbox-leverages-email-marketing/27. Google Search Engine Optimization Starter Guide http://static.googleusercontent.com/external_content/untrusted_dlcp/www.google.com/en/us/webmasters/docs/search-engine-optimization-starter-guide.pdf28. AdAge, “Mobile Gaming + E-commerce = a Win for Brands,” March 14, 2011http://adage.com/article/digitalnext/linking-mobile-gaming-e-commerce-a-win-brands/149380/29. Mashable, “Mobile by the Numbers,” March 23, 2011 http://mashable.com/2011/03/23/mobile- by-the-numbers-infogrpahic/30. (http://www.mediabistro.com/alltwitter/guide-to-twitter-advertising-promoted-tweets-101_b188) 31. Adage “Digital U.S. Hispanics Lead Technology Purchases http://adage.com/article/global-news/digital-u-s-hispanics-lead-teachnology-purchases/14788432. Open Site Explorer, http://www.opensiteexplorer.org/www.redbox.com/a!links33. Mashable, “How to get the most out of Google AdWords,” March 27, 2011 http://mashable.com/2011/03/27/google-adwords-tips/34. Target Audience with Digital Out of Home http://dailymobileguide.blogspot.com/2009/10/target-your-audience-with-digital-out.html35. Advertising Age Hispanic Fact Pack 200936. Pew Internet “Four percent of online Americans use location-based services.” http://www.pewinternet.org/reports/2010/location-based-services.aspx37. Daily Mobile Guide http://dailymobileguide.blogspot.com/2009/10/target-your-audience-with-digital-out.html

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Online Advertising MediA Buy

Appendix

Sammy Ganz & Kassie McLaughlinRedboxPage 1: Online Advertising Monthly Insertions

Jan '12 Feb '12 March '12 Apr '12 May '12 June '12 July '12 Aug '12 Sept '11 Oct '11 Nov '11 Dec '11 Total

Top 10 sites: Name of Site 000's Reached by Site Creative Unit For Site

CPM Per Creative Unit

1 YouTube.com122,207 Takeover $30 1 1122,207 Targeted Rich Media $24 0122,207 Non-targeted Rich Media $18 1 1 2122,207 Video Ads $30 1 1 1 1 1 1 1 1 1 1 1 11

2 Yahoo.com110,783 Takeover $30 0110,783 Targeted Rich Media $24 1 1 1 1 4110,783 Non-targeted Rich Media $18 1 1 1 1 1 1 1 1 8110,783 Video Ads $30 0

3 MySpace.com27,753 Takeover $30 027,753 Targeted Rich Media $24 1 1 1 1 1 527,753 Non-targeted Rich Media $18 1 127,753 Video Ads $30 0

4 Ebay.com63,931 Takeover $30 063,931 Targeted Rich Media $24 1 1 263,931 Non-targeted Rich Media $18 1 1 1 1 463,931 Video Ads $30 1 1 1 3

5 MSN.com79,775 Takeover $30 079,775 Targeted Rich Media $24 1 1 1 1 1 1 1 779,775 Non-targeted Rich Media $18 1 1 279,775 Video Ads $30 0

6 Amazon.com89,453 Takeover $30 1 189,453 Targeted Rich Media $24 1 1 1 389,453 Non-targeted Rich Media $18 1 1 1 1 1 1 1 1 889,453 Video Ads $30 1 1

7 Google (Display Network)155,003 Takeover $2 0155,003 Targeted Rich Media $2 1 1 1 3155,003 Non-targeted Rich Media $2 1 1 1 1 1 1 1 1 1 9155,003 Video Ads $2 0

8 Ask.com59,166 Takeover $30 1 159,166 Targeted Rich Media $24 059,166 Non-targeted Rich Media $18 1 1 1 359,166 Video Ads $30 1 1 2

9 Tagged.com6,518 Takeover $30 1 16,518 Targeted Rich Media $24 1 16,518 Non-targeted Rich Media $18 1 1 26,518 Video Ads $30 1 1 1 3

10 Univision1,102 Takeover $30 1 11,102 Targeted Rich Media $24 01,102 Non-targeted Rich Media $18 1 1 1 1 1 1 1 1 1 1 1 111,102 Video Ads $30 0

GRAND TOTAL 13 6 6 12 6 6 9 6 10 10 7 9 100

# of Insertions Per Website Per Creative Unit Per Month

Media Buy: Traditional Online Advertising Recommendation

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Appendix

Online Advertising MediA Buy

Sammy Ganz & Kassie McLaughlinRedboxPage 2: Monthly Costs of Online Ad Buy

Jan Feb March Apr May June July Aug Sept Oct Nov Dec Total

Top 10 sites: Name of Site 000's Reached by Site Creative Unit For Site

CPM Per Creative Unit

1 YouTube.com122207 Takeover $30 0 0 0 0 0 0 0 0 0 3666210 0 0 3666210122207 Targeted Rich Media $24 $0 0 0 0 0 0 0 0 0 0 0 0 0122207 Non-targeted Rich Media $18 0 0 0 2199726 0 0 0 0 2199726 0 0 0 4399452122207 Video Ads $30 3666210 3666210 3666210 3666210 3666210 3666210 3666210 3666210 3666210 0 3666210 3666210 40328310

2 Yahoo.com110783 Takeover $30 0 0 0 0 0 0 0 0 0 0 0 0 0110783 Targeted Rich Media $24 0 0 0 0 0 0 0 0 0 0 0 0 0110783 Non-targeted Rich Media $18 1994094 1994094 1994094 1994094 1994094 1994094 1994094 1994094 0 0 0 0 15952752110783 Video Ads $30 0 0 0 0 0 0 0 0 0 0 0 0 0

3 MySpace.com27753 Takeover $30 0 0 0 0 0 0 0 0 0 0 0 0 027753 Targeted Rich Media $24 666072 0 0 666072 0 0 666072 0 0 666072 0 666072 333036027753 Non-targeted Rich Media $18 0 0 0 0 0 0 0 0 499554 0 0 0 49955427753 Video Ads $30 0 0 0 0 0 0 0 0 0 0 0 0 0

4 Ebay.com63931 Takeover $30 0 0 0 0 0 0 0 0 0 0 0 0 063931 Targeted Rich Media $24 0 0 0 0 0 0 0 0 0 0 1534344 1534344 306868863931 Non-targeted Rich Media $18 1150758 0 0 1150758 0 0 0 0 1150758 1150758 0 0 460303263931 Video Ads $30 0 0 0 0 0 0 0 1917930 0 0 1917930 1917930 5753790

5 MSN.com79775 Takeover $30 0 0 0 0 0 0 0 0 0 0 0 0 079775 Targeted Rich Media $24 1914600 1914600 1914600 1914600 1914600 1914600 1914600 0 0 0 0 0 1340220079775 Non-targeted Rich Media $18 0 0 0 0 0 0 0 0 1435950 1435950 0 0 287190079775 Video Ads $30 0 0 0 0 0 0 0 0 0 0 0 0 0

6 Amazon.com89453 Takeover $30 2683590 0 0 0 0 0 0 0 0 0 0 0 268359089453 Targeted Rich Media $24 0 0 0 0 0 0 0 0 2146872 0 2146872 2146872 644061689453 Non-targeted Rich Media $18 1610154 1610154 1610154 1610154 1610154 1610154 1610154 0 0 1610154 0 0 1288123289453 Video Ads $30 0 0 0 0 0 0 0 2683590 0 0 0 0 2683590

7 Google (Display Network)155003 Takeover $2 0 0 0 0 0 0 0 0 0 0 0 0 0155003 Targeted Rich Media $2 310006 0 0 310006 0 0 310006 0 0 0 0 0 930018155003 Non-targeted Rich Media $2 0 310006 310006 0 310006 310006 0 310006 310006 310006 310006 310006 2790054155003 Video Ads $2 0 0 0 0 0 0 0 0 0 0 0 0 0

8 Ask.com59166 Takeover $30 0 0 0 0 0 0 1774980 0 0 0 0 0 177498059166 Targeted Rich Media $24 0 0 0 0 0 0 0 0 0 0 0 0 059166 Non-targeted Rich Media $18 1064988 0 0 1064988 0 0 0 0 0 1064988 0 0 319496459166 Video Ads $30 1774980 0 0 0 0 0 0 0 0 0 0 1774980 3549960

9 Tagged.com6518 Takeover $30 0 0 0 0 0 0 0 0 195540 0 0 0 1955406518 Targeted Rich Media $24 0 0 0 0 0 0 0 0 0 156432 0 0 1564326518 Non-targeted Rich Media $18 117324 0 0 117324 0 0 0 0 0 0 0 0 2346486518 Video Ads $30 195540 0 0 195540 0 0 195540 0 0 0 0 0 586620

10 Univision1102 Takeover $30 0 0 0 0 0 0 0 0 33060 0 0 0 330601102 Targeted Rich Media $24 0 0 0 0 0 0 0 0 0 0 0 0 01102 Non-targeted Rich Media $18 19836 19836 19836 19836 19836 19836 19836 19836 0 19836 19836 19836 2181961102 Video Ads $30 0 0 0 0 0 0 0 0 0 0 0 0 0

GRAND TOTAL 17168152 9514900 9514900 14909308 9514900 9514900 12151492 10591666 11637676 10080406 9595198 12036250 136229748

Media Buy: Traditional Online Advertising Recommendation

Cost of Online Ads per Website Per Month

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Reach/Month CPM Reach/1000 October January April July TotalBanner Display AdsAudio & DisplayiPhone Mobile DisplayTotal

20935982 $7 20,935.98 $146,551.87 $146,551.87 $293,103.7520935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.0620935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.06

$690,887.41 $690,887.41 $544,335.53 $544,335.53 $2,470,445.88

Appendix

pAndOrA MediA Buy

seArch engine MArketing Buy

Keyword Level of Competition Estimated Average CPC Estimated Daily Clicks Estimated Daily Cost Estimated Monthly Cost Estimated Cost Per Year

cheap dvd rentalHigh competition, 480 monthly searches $1.53 100 $153.00 $4,590.00 $55,080.00

dvd rental kiosksHigh competition, 3,600 monthly searches $0.97 160 $155.00 $4,650.00 $55,800.00

rent new releasesLow competition, 4,400 monthly searches $0.05 100 $5.00 $150.00 $1,800.00

DVD rentalMedium level of competition, 135,000 monthly searches $1.23 100 $123.00 $3,690.00 $44,280.00

Cheap DVDsHigh competition, monthly searches: 49,500 $1.01 16 $16.92 $507.60 $6,091.20

Cheap DVD moviesHigh competition, 2,900 monthly searches $2.00 250 $500.00 $15,000.00 $180,000.00

Cheap blu ray moviesHigh competition, 8,100 monthly searches $0.90 100 $90.00 $2,700.00 $32,400.00

Rent cheap moviesHigh competition, 3,600 monthly searches $1.50 300 $450.00 $13,500.00 $162,000.00

Rent DVDs cheapMedium to high competition, only 58 monthly searches $0.10 45 $4.50 $135.00 $1,620.00

DVD rental machineMedium to high competition, 3,600 monthly searches $0.60 100 $60.00 $1,800.00 $21,600.00

Cheap movie rentalsHigh competition, only 210 monthly searches $0.30 75 $23.00 $690.00 $8,280.00

Family moviesHigh competition, 480 monthly searches $0.50 60 $30.00 $900.00 $10,800.00

Movie rental kioskMedium competition, 1,000 monthly searches $0.80 90 $72.00 $2,160.00 $25,920.00

Family movie nightLow competition, 2,900 monthly searches $0.88 125 $110.00 $3,300.00 $39,600.00

Affordable DVDsHigh competition, monthly searches of 46 $0.05 275 $13.75 $412.50 $4,950.00

Family DVDsLow competition, 3,600 monthly searches $1.02 100 $102.00 $3,060.00 $36,720.00

Family entertainmentVery low competition, 49,500 monthly searches $0.81 75 $60.75 $1,822.50 $21,870.00

rent DVDsMedium competition, 8,100 monthly searches $2.37 200 $490.00 $14,700.00 $176,400.00

rent family moviesNo competition, 1,000 monthly searches $0.10 100 $10.00 $300.00 $3,600.00

reserve DVDs onlineNo competition, 2,000 monthly searches $0.20 120 $24.00 $720.00 $8,640.00

Total Estimated Cost = $2,493 $74,787.60 $897,451.20

D

Page 60: Redbox Interactive Media Campaign

Appendix