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Advertising and magazines. Adam Smith Head of knowledge management ZenithOptimedia 26 th April 2005. ZenithOptimedia. One of the leading global media services agencies 4,000 employees 162 offices in 59 countries Owned 100% by Publicis Groupe SA. How we forecast ad expenditure.
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Advertising and magazines Adam Smith Head of knowledge management ZenithOptimedia 26th April 2005
ZenithOptimedia • One of the leading global media services agencies • 4,000 employees • 162 offices in 59 countries • Owned 100% by Publicis Groupe SA
How we forecast ad expenditure • Historic base of actual spend from 1980 • Four year forecast from local offices • ‘Top-down’ analysis in London
Forecast headlines • Stable global economic growth • Corresponding growth in adspend • Direct and interactive spend rising fastest
Stable growing world economy Gross Domestic Product: year-on-year % change in current prices Source: ZenithOptimedia
Major media* adspend growing Adspend: year-on-year % change in current prices * TV, Print, Radio, Cinema, Outdoor, Internet Source: ZenithOptimedia
Global adspend v GDP yr-on-yr % change (at current prices) Source: ZenithOptimedia
TV and internet gaining share Global adspend by media type $417bn $355bn TV 38% 38% $217bn $bn 29% Newspapers 36% 30% Magazines 13% 36% 14% Radio 8% 9% 13% Outdoor 5% 5% 8% Internet 5% 6% 3% Source: ZenithOptimedia
Magazine and newspaper share: world Newspapers Magazines Source: ZenithOptimedia
Magazine and newspaper share: Asia-Pacific Newspapers Magazines Source: ZenithOptimedia
Internet users 2000-200822 developed markets and 14 emerging Combined Developed Emerging Source: ZenithOptimedia
Internet: no ceiling in sight N. America World Asia-Pac Europe Source: ZenithOptimedia
Media adspend – declining share of marketing Spend 2004 v 2001 % change (US, Japan, Germany, UK, France) Source: Marketing Expenditure Trends Report, London Business School
Ninah Consulting Econometric modelling Touchpoints Consumer contact audit The ROI Blueprint Practice manual Achieving ROI
Telemarketing Fax Mail Radio Delivery Fulfillment Television Event/ Sponsorships Magazines Outdoor Newsprint Placement/ Product Sampling Branded Screens Viral Mail Household PDAs Branded Games Mobile Mkt. Elevator Advertising Customer Service iTV PDAs Retail Point of Sale Face-to-Face Brand to consumer Branded Mobile Phone Sites PVRs Full-page Banners Telematics Screens on Exercise Bikes Banner Ads Image Content Scanner Branded Web Content Bar Code Scanner Branded CDs
Media consumption % share of the average person’s media time % share of time Source: ZenithOptimedia
Media reach atomising 2004 Personal Communication 2014 Mobile internet E-mail PC Internet High reach Low reach Digital TV Print Analogue TV Radio Mass Communication Cinema Posters Source: ZenithOptimedia
Direct Media Mass media Creating awareness Generating response Enhancing experience Interactive Media Integrated marketing Aim here
Honey – conventional media • TV (lots of satellite) • Press (7-19 year-olds) • Radio
Honey – EMAP media partnership • Dance competitions with local DJs • On-screen ‘Bug’ on Kiss TV; advertorial in magazines • Microsite linked to EMAP websites
Conclusion • Traditional media good for cash, harder for growth • New media good for growth but harder to manage • Brand more vital in age of excess choice • Brand defined by users not producers