Chapter 14 - Chapter 14 - Media Strategy and Planning for...

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Chapter 14 -- Media Strategy and Planning for Advertising and IBP (5e) 448-9 intro -- since the 1960s: Super Bowl 30-sec. commercial costs have gone up times 10 while the audience has only doubled and ratings have stayed the same and adv has merged, morphed, and meaningfully mingles with all sorts of other forms of brand communications 1967- 30-second cost- 208,000 (42,000 dollars of that time) 2003- 30-second cost $2.1 million dollars both had same rating of 41, then it = 43 million people now=88 million “Advertising is dead; long live new media” Hyperbole, advertising was not dead now things have changed a better metaphor is advertising has merged, morphed, and meaningfully mingles with all sorts of other forms of brand communications !449-54 important changes: the 15% ad agency media commission system is gone, replaced by fee-for- service basis; new media options have been springing up with a blurring of the line between PR and advertising, lots of news stories are being written by marketers; ad agencies have become leaner operations since becoming pub- licly traded companies; agency clients are asking for more accountability and are demanding ROI data; global- ization is becoming more and more the wave of the present; free content via the internet is threatening tradition- al media; consumers are generating content like ads; consumer are increasingly in control and have power via information available using the Internet; hyper ad clutter is more of a concern when consumers have ways of avoiding it (e.g., TiVo type devices); ethnic media are becoming more important Important Changes: Agency Compensation fee-for-service- rather then 15% ad agency commission clients pay for specific jobs resembles law firm’s billing system people who create ads may work in entirely different agency from people who buy media demise of 15% brought on new media age involved less financial reward for buying lots of mass media, was less incentive to consider only tradi- tional forms More Media “Media” now includes: internet, cross-promotions, product placements, buzz and viral marketing, and movies that are really feature-length commercials etc. etc. companies supply and push “news” stories about their brands or categories to media outlets as part of overall IBP efforts. e.g during holidays when “stories” are produced by poultry or seasoning marketer and sent out to news media as news growth of ads as “news” is fast, strong, and significant, model of future- senior executive said Earned media opposes to paid media e/g consumer reports on cars Going Public becoming leaner operations Two quickest routes to greater short-term profit fire staff make more money on fees and media buys Greater Accountability:Return on Investment ROI- Return on Investment no more “trust us” our advertising is working
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Chapter 14 - Chapter 14 - Media Strategy and Planning for...

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