Media Fragmentation Requires A New Approach
The Media Landscape in 2005:
Television audiences are dispersed across various media outlets making it increasingly difficult to find the ideal media mix to effectively achieve marketing goals
Certain demographic groups are especially fragmented
160 million American currently use the Internet, spending a total of 256 billion minutes online monthly.
75 million Americans used the Internet to research political information in 2004 and 49% of Congressional staffers prefer to receive information online before a vote
Online Landscape in 2005
Millions are online, and broadband has reached the tipping point
Voters and decision-makers have embraced the Internet, spending more time online than ever before
Reaching voters and decision-makers has never been easier
Online Landscape in 2005
Millions are online, and broadband has reached the tipping point
Voters and decision-makers have embraced the Internet, spending more time online than ever before
Reaching voters and decision-makers has never been easier
Broadband Hit 40% in ’05, and Continues to Grow
Source: Forrester Research, June 2005
0.6 2.66.1
10.515.6
19.5
27.4
38
48.3
57
63.668.2
101.1 102.1 103.2 104.3 105.5 106.6 107.7 108.9 110.1 111.2 112.4 113.6
80.277.1
74.372.16867.2
63.559.2
44.3
33.4
83.787.2
0.0
20.0
40.0
60.0
80.0
100.0
120.0
US
Ho
useh
old
s (
millio
ns)
All US households (millions)
Internet households
Broadband households
Actual Forecast
In 1998, 33% of US households were online.
By the end of 2009, 77% of US Households will be online.
Broadband hit 40% in 2005 and continues to grow.
Broadband is expected to grow at a 20% Compound Annual Growth Rate (CAGR) between over the next 5 years.
The Domestic Internet Reach:
Women 57MMTeens 23MMYoung Adults 21MMMen 53MMSeniors 26MM
Target Internet
All Genders and Ages Have Embraced the Internet
Teens
(12-17)
Women
(18-54)Seniors
(55+)Men
(18-54)
Young Adults (18-24)
Source: Mediamark Research Inc., Fall 1998-Fall 2005
Middle Adults Make Up The Largest Group OnlineSeniors Are The Fastest-Growing Online Demographic With 25% Annual Growth
5%
12%
83%
Internet Usage Has Become So Pervasive As to Have Affected Offline Media Usage
3%
73%
24%
4%
76%
20%
TV
“Since going online, how has your time spent using each of the following types of media offline changed, if at all?”
4%
77%
19%
Newspaper RadioMagazine
DecreasedNo ChangeIncreased
Source: Forrester Research, September 2003-4. Based on U.S. adults age 18+.
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%Total US Online (in millions)
Percent of US Online
Source: Nielsen//Netratings, February 2005. Home and Work Panel.Base: Actively online US people age 2+.
To
tal
US
Peo
ple
On
lin
e (i
n m
illi
on
s) Percen
t of U
S P
eop
le On
line
Internet Usage Peaks In the Late Afternoon andDuring Prime Time, Competing Heavily with TV
Daytime is Primetime for the Internet
Internet Represents 15% of Weekly Media Time Spent
Source: SRI/Knowledge Networks Media Scan – Fall 2004. Other includes cinema, yellow pages and videogames.
Cable TV 25%
Magazine 3%
Other 3%
Broadcast TV 25%
Radio 25%
Internet 15% Papers
4%
Tomorrow, Internet Consumption Will Grow Faster
Source: Veronis Suhler Stevenson, Nielsen//NetRatings, Arbitron and Thomas Weisel Partners LLC. April 2004.
17%
+2%
-2%
-1%
-2%
2002 - 2007Compound AnnualGrowth Rate (CAGR)
Cable TV
Internet+17%
Magazines
Radio-1%
Broadcast TV
News-papers
Online Ad Spending is Expected to Grow…
Online Ad Spending Forecast by Vertical(US$ in Millions)
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2002 2003 2004 2005 2006 2007 2008
Automotive
Business & Finance
CPG
Entertainment
PharmaRetail
Technology
Telecommunications
Travel
Other (Inc. Pol/Gov)
Source: Jupiter custom forecast, August 2005, based on CMR ad spending estimates.
Online ad spending total is expected to increase at a 14% Compound Annual Growth Rate (CAGR) over the 2004 to 2009 period.
Source: Dynamic Logic’s Market Norms, February 2004
Savvy marketers have moved away judging the effectiveness of online advertising in a direct
response vacuum where click-through was the only
important metric.
Significant increases in all branding metrics result
from online ad campaigns, when the control and exposed groups are
compared.
…Largely Due to Increases in Branding Campaigns…
…Persuading Voters Through Banner Ads
Third party research showed that favorability towards John Kerry increased by 14% among Republicans and Independents after being exposed to ads for John Kerry.
Voters pay attention to political ads. 74% of those exposed to Kerry banner ads during the Convention remembered seeing them.
Political Affiliation: Brand Metrics After Seeing Kerry Online Ads
Source: Dynamic Logic Study for John Kerry for President, August 2004
Online Ads Impact Voter Perceptions
After the third presidential debate, third party research showed that those who were exposed to DNC banner ads actually associated their messages with John Kerry.
Research was commissioned by Yahoo! and MSHC and only surveyed voters in battleground states, as defined by the DNC.
Source: Dynamic Logic Study for Democratic National Committee, October 2004
Do you associate the message “Finishes strong and is ready to lead” with Kerry?
Survey Group Control Exposed Overall (n=2,383) 42% 47% Women (n=844) 41% 52% Republicans (n=621) 11% 17% Independents (n=795) 43% 46% 3+ Impressions (n=1,275) 43% 50%
Online Landscape in 2005
Millions are online, and broadband has reached the tipping point
Voters and decision-makers have embraced the Internet, spending more time online than ever before
Reaching voters and decision-makers has never been easier
The Internet is Changing The Way Americans Live
Source: Pew Internet & American Life Project, March 2005
Fully 75 million Americans – 37% of the adult population and 61% of online Americans – used the Internet to get political news and information, discuss candidates and debate issues in emails, or participate directly in the political process by volunteering or giving contributions to candidates.
43 million people – 35% of online Americans – said they used email to discuss politics.
The online political news consumer population grew dramatically from 18% of the U.S. population in 2000 to 29% in 2004.
Whereas 11% of registered voters said the Internet was their primary source for political news in 2000, fully 18% said that in 2004.
Voters turn to the Internet for political news and information:
Reaching and Influencing Congress Online
A Radical Shift in Information-Gathering
Over the last five years there has been a radical shift in the way Congress gathers critical issue information.
Online news sites, like NationalJournal.com, WashingtonPost, and even sites like Google, have become not only a valued resource but also a way for companies and advocacy
organizations to communicate with Congress.
Preparing for a Vote, Congress Goes Online….
How Does Congress Prefer to Access Information from Interest Groups, Lobbyists and Other Sources 24 Hours Before a Vote?
49%
35%
10%
6%
Online Resources
In-person visit/presentation
Printed materials sent by mail
…Seeking Policy Information and Analysis
What Information is Most Useful for Interest Groups, Corporations or Other Organizations to Provide Online?
Newly released position papers
Analysis of impact on my district or state
Tutorials explaining complex issues
Presentation of opposing viewpoints
Archived position papers
Videos of events
Other 2%
2%
40%
45%
53%
68%
70%
Source: National Journal Study
Online Landscape in 2005
Millions are online, and broadband has reached the tipping point
Voters and decision-makers have embraced the Internet, spending more time online than ever before
Reaching voters and decision-makers on the web
Reaching Voters and Decision-Makers Online
1. Targeted Banner Advertising2. Behavioral Marketing3. Contextual Advertising4. Direct-Response Marketing5. Buzz and Blog Marketing6. Landing Page & Creative Design
A variety of persuasion and direct response online advertisingmethods well-positioned to reach and educate target audiences
Targeted Banner Advertising
Combine the efficiency of direct mail with key insights from broadcast media placement to reach target audiences:
Demo-Targeting – Online ads can be delivered to those in specific demographic groups. Example: Yahoo! News, 55+ Women
Geo-Targeting – Ensure your message is only seen by those in your state, city, or district. Example: TargetPhiladelphia burbs on The New York Times
Behavioral Targeting – Serve ads based on a user’s online web-surfing behavior. Example: Deliver HomeDepot ads to people on Lowes.com
Content Targeting – Place ads on a specific website based on their content and the audience they attract. Example: Run ads only when the phrase “Iraq War” appears in a story or search query.
IP Targeting – Serve ads to specific IP addresses, such as house.gov, .mil, .edu, etc. Example: Reach Congress on The Washington Post Online
Reaching Specific Groups of Voters: Working Mothers
Working Women Are Heavy Users Of The Internet:
Spend more time online each day than in front of a television
Spend an average of 40 minutes online during the day for non-work activities
Use the Internet during the day to research news, look up the weather, do chores, communicate with friends, and generally increase their quality of life
Reaching Specific Groups of Voters: Individuals Under 35
Voters under 35 are characterized by “unsettled” lifestyles:
2004 welcomed the first group of voters who grew up with the Internet at home, school, and work
46% consider the Internet to be the “most essential” medium in their daily lives, increasing their social networks and significantly eating into their TV time
The majority prefer the Internet as their primary source of local entertainment, news, and TV information
Reach Those Interested in Healthcare Issues
110 Million US Adults Look for Health Information Online Every Month
Reach News-Savvy, Information-Seekers Online
Reach Online Influentials on Leading Political News Websites:
Influentials are private citizens who tell their friends where to vacation, which books to read, and for whom they should vote.
Influentials are more likely to vote, contribute, volunteer write letters to the editor, and get involved in local political affairs.
Find online Influentials on newspaper websites. 75% of major newspaper visitors are “very or somewhat likely” to research a candidate’s position online.
Reaching Capitol Hill Decision-Makers
85% of Congressional Staffers Turn to the Internetat Least Daily to Conduct Research for Work
Behavioral Marketing to Reach Niche Groups Online
Behavioral marketing targets individuals based on their online activities, rather than purely by the content of the pages they visit.
“Site-Centric” Behavioral Targeting Identify behaviors within a single website and serve ads to
that user at a later point in time based on knowledge of this behavior.
Example:After spending five minutes in the Business Section of the New York Times Online, you see ads for Fidelity in the Sports section the following day.
“Web-Wide” Behavioral Targeting Obtain permission from the user to identify commercial
behavior across all sites and deliver targeted ads based on “Web-Wide” behavior via desktop technology.
Example:Ads for AFL-CIO appear after you visit the Labor Department’s website.
Contextual Advertising Reaches Information-Seekers
Place information at the top of search engine results pages and only pay when people click on your ads
Customers use search engines to research products 41% of the time
Contextual ads can be geographically targeted to the city and state level
Contextual ads can also appear within relevant content
Contextual Ads Also Available in Banner Ad Formats
Washington Post and Yahoo! Also OfferContextual Advertising in Banner Formats
Reaching Influentials/Online Political Citizens on Blogs
Source: Pew, March 2005; eMarketer, May 2005
Blog Readers Are the Most Influential Online Political Citizens
By the end of 2004, blogs had established themselves as a key part of online culture and as the de facto Assignment Editor for news rooms across the nation.
Blog readership jumped 58% in 2004 and now stands at 27% of internet users.
There were 36 blogs in 1999 – today there are more than 8 billion.
Rapid growth continues…and is extended by the emergence of RSS:
Online Advertising During in 2004 and 2005 Election
If you are connected to the Internet, you can click on each ad to see it animate
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