BRANDING IN THE NEW MEDIA ENVIRONMENT

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BRANDING IN THE NEW MEDIA ENVIRONMENT

• Presented by Dr. Larry Chiagouris
• Associate Professor of Marketing, Pace University
• And
• Senior Partner, BrandMarketing Services, Ltd.

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Experience on100 Brands, Including
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Flow of my remarks

• The Brand Environment
• The Media Environment
• Recommendations to Protect brands and Thrive in
  the Future

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The Brand Environment
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Key cultural trends impacting brands

• Fake reality
• Fake celebrity
• Pornography growing
• Morality movement growing

• Dissatisfaction
• Control freaks
• Quick impressionsfast decisions
• Everyone expressing an opinion

Multitasking!!!
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More competition than ever before
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More government involvement than ever before
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More new products are being introduced than ever
before
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There are more consumer segments to sell to than
ever before
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The consumer has more places to shop than ever
before
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The consumer is more price resistant than ever
before
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The consumer has more media choices than ever
before
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I Control
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I Control - What Consumers Want
Better Television/Time Management
Source Forrester Research, 2003
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Consumer Control Landscape
Ad Targeting 108 Million Homes
IPTV 1 Million Homes
DVR 8.0 Million Homes
Interactive/Place Based Out of Home 400M BBs
DVD Player 55 Million Homes
Video On Demand 18 Million Homes
Satellite Radio Internet Radio 6.0 Million
Subscribers / 70 Penetration
Virtual Channels 18 Million Homes
Portable Audio 20 Million Units
Interactive Program Guide 16 Million Homes
65.2 cell phoneU.S. penetration
Internet / Broadband 155 Million Users / 57
Million BB Users
Gaming 50 Penetration
Dual Sync 45 Million Homes
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Navigation
Interactive Program Guides
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Navigation Overview

• Screen listings
• Interactive
• Future will bring links embedded on screen

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Interactive Program Guide Usage
TV Guide and Nielsen top line findings on IPG
usage

• of TV viewers use the IPG on a daily basis 83
• Avg. unique ads HHs exposed per day/August 5.3
• Avg. of IPG sessions per day/per HH 8.5
• Avg. length of IPG session (seconds)
  53.3
• Total minutes spent using IPG per day 7.6
• Avg pages per session 1.8 pages

Source Nielsen, TV Guide, March 2004
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On Demand Video Digital Video Recorder DVR
Consumer Control Video
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DVR Usage
What DVR features do consumers enjoy the most?
The ability to record multiple programs, skip
commercials and pause and rewind live TV, are top
reasons consumers love their DVR
Source Forrester September 2004
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Commercial killer???

• Percent of TiVo ads skipped during programming

Category ads skipped during programming
Source TiVo
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On Demand Video On Demand (VOD)
Consumer Control Video
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FreeZone Features
RESUME VIEWING SEARCH Health Wellness Automotive
Underground Groove NOKIA Style Fashion Food
Wine by Gallo
View Now NOKIA Style Fashion
Main Menu
Back
Help
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Consumer Control Video
Broadband
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Broadband Usage

• The faster the consumers internet access, the
  more time they spend online, view web pages, and
  access the internet

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Ad Targeting
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Targeting Penetration
Landscape Addressable advertising will be
delivered on the HH level, targeting consumers
set top boxes based viewing habits and household
characteristics. Result Creative unit would
run across multiple demographics and markets
speaking to individual customers and consumers on
the household level with a highly targeted and
relevant message
College Campus Consumer
Caucasian Family Customer
Hispanic Family Customer
Single Female- Consumer
African American Family Customer
Teen Girls - Customer
Seniors Consumer
African American Newlyweds Consumer
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Gamer Digital Landscape

• Who is the Gamer?
• Today 150 Million Americans play video games
• Skews male 60/40
• Average Game Player Age 29
• Average Video Computer Game Buyer is 36
• Plays video games a minimum 5 times per week
• Time spent playing per sessions, minimum 30
  minutes

Who is the Gamer?
Virtual Channels 5 Million Homes
Internet 82 Million Casual Gamers
On Screen Play Along 500,000 Homes DVD
Penetration 50
Arcade
Two Screen Sync to Broadcast 45 Million Homes
Console Systems HH penetration 50 Males 8-34 75
Source The Entertainment Software Association,
May 2004
Mobile Phone 65 US Penetration
Personal Computer 76 Million Home Computers
Mobile System
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Gaming The Next Frontier

• While the dominant demographic for hardcore
  gaming is Males 18-34, the 35 Female segment is
  one of the fastest growing gaming populations
  (primarily online gaming) Virtual online
  tournaments that can attract hundreds of
  thousands of players AND spectators
• Gamers are now spending as much time playing as
  they do on the Internet as a whole (1 hour per
  day each)
• Game Advertising is forecasted to surpass the 1B
  mark by 2010 (Yankee Group)

Jupiter Report US Video Games Forecast 2004
Jupiter Report Mobile Gaming Revenues 2003 -
2009 _at_Plan, 2005
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In-Game Marketing for N-Gage
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I Connect
Mobile
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The Opportunity is Large and Growing

• Mobile messaging is projected to grow from 1
  billion in 05 to 5 billion in 09
• Largest growth areas are Utilities and Media and
  Gaming
• Spending on mobile marketing is projected to
  reach up to 253MM in 2005 and could reach 750MM
  in 2009 (growth rates are projected between 22
  and 31.7)

Source Zelos Group, 2004
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The Three Categories of Mobile Marketing

• Mobile advertising branding or lead and sales
  generation programs downloads, ringtones,
  wallpapers, sponsored content, custom
  applications, beamed applications, demo/geo
  targeting on PDAs)
• Increasing Circulation Affinity Marketing via
  Mobile Publishing delivering valuable
  contentbranded content to mobile devices
• Mobile Customer Relationship Management SMS/MMS
  campaigns

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Examples of Mobile Marketing Techniques
WAP Ad units with content download integration
(e.g. branded wallpapers)
SMS with 5 digit code (opt-in, confirmation,
etc.)
Sponsored content within downloaded applications
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Examples of a Mobile Marketing Campaign Current
Clients Dialog Management

• Reebok Whodunit

Email Clue 1
Text Message Clue 2
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Podcasting
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Podcast Advertising

• No ad model developed for podcasting space so we
  can be as creative as we want
• Audio ads can be imbedded directly in the
  downloaded data
• Contact Podcaster
• Contact terrestrial radio station who is
  podcasting content
• Develop your own podcast for consumers
• Not limited to traditional audio commercial
  length
• Non cluttered advertising environment, your
  message will definitely be heard If you build
  your own Podcast must market. If you build it
  will they come

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Consumer Podcasts

• Dailysourcecode.com
• Ipodder.org
• Podcastingnews.com
• Podcast.net
• Podcastalley.com
• Podcastbunker.com
• Downloadradio.org
• Audio.weblogs.org
• Allpodcasts.com

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Branded Entertainment
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Protecting Brands in an age of media
fragmentation, product proliferation, consumer
segmentation, retail dispersion and increased
competition Recommendations and ideas and a
word of caution
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Back to the Futurewith Word of Mouth and Social
Networking?
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Writing on walls and smoke signals
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Modern examples

• Procter Gamble and the Tremor initiative
• Friendster
• myspace.com

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The first words of caution

• SCALABILITY AND CONTROL!

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Brand building issues

• Privacy and government intervention
• Competition and control among industries

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Recommendations for Navigation Pages

• Target brand messages within Music, Sports and
  Technology programming
• Incorporate long form brand videos that consumers
  can access from their Interactive Program Guide
• Work with Interactive Program Guide companies to
  customize ad units and executions

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Recommendations for Gaming

• Remember that gamers are not all young or male
• Remember that gamers who are young are now
  developing their brand loyalties
• Remember the limits to the human eyesight.do not
  put too much on the screen

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Recommendations for VODs and DVDs/DVRs and
Podcasts

• Extend media buy to include VOD placement within
  partners channel
• Sponsor VOD/DVD events
• Develop custom creative for VOD

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General Recommendations

• Pay attention
• - Educate yourself
• - Watch and learn
• Communicate
• - Talk to peers
• - Talk to experts

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General Recommendations

• Plan with Flexibility
• - Begin to assess the opportunities
• - Design change into your plan
• - Plan based on tasks and not only the year
• Review and refine frequently
• Repeat As Needed

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General Recommendations in terms of intellectual
property

• Take a lesson from Coke
• Take a lesson from Microsoft

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Recommendations

• Establish Partnerships
• No one person or company or country is big enough
  to succeed alone in the new media environment!!
• And there are many willing partners!!

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• THANK YOU AND
• GOOD LUCK