Generating advertising revenues in digital media - Lessons Learned
Download
1 / 21

FIRST STEP IS TO DEFINE BEST - PowerPoint PPT Presentation


  • 156 Views
  • Updated On :

Generating advertising revenues in digital media - Lessons Learned . WHO AM I?. SVP, Liberty Media Corporation Interactive Group Fun Technologies, Game Show Network, QVC, Provide Commerce, GSI Commerce, OpenTV, etc. Partner, McKinsey & Company; Co-founder and leader, Internet Practice

Related searches for FIRST STEP IS TO DEFINE BEST

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'FIRST STEP IS TO DEFINE BEST ' - ostinmannual


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Who am i l.jpg
WHO AM I? Learned

  • SVP, Liberty Media Corporation Interactive Group

    • Fun Technologies, Game Show Network, QVC, Provide Commerce, GSI Commerce, OpenTV, etc.

  • Partner, McKinsey & Company; Co-founder and leader, Internet Practice

  • Founding Board member of Future of Advertising Stakeholder cross-industry committee involving AAAA, ANA, IAB (1997-2000)

  • Keynote, Procter & Gamble Interactive Advertising Summit August 1998; Harvard University Interactive Advertising Conference 1996 – frequent speaker at industry events and press source on digital advertising issues


Today s agenda l.jpg
TODAY’S AGENDA Learned

  • Lessons

  • learned

  • The media buying process

  • Media: A business in transition


Sellers spend billions to interact with buyers l.jpg
SELLERS SPEND BILLIONS TO INTERACT WITH BUYERS Learned

$ Billions, per year

  • Sellers

  • Buyers

  • Advertising/media

  • National branding

  • Local advertising

  • Direct

  • $100B

  • $100B

  • $150B

  • Channel management

  • 100 million households

  • Stores, dealerships, branches

  • Incentives, promotions, rebates

  • $?

  • $100B +

  • Customer servicing

  • Call centers

  • Maintenance, repairs

  • Loyalty programs

  • Billing costs

  • $?

  • $?

  • $?

  • $?

  • 200 million adults


Traditional media reaching diminishing returns l.jpg
TRADITIONAL MEDIA REACHING DIMINISHING RETURNS Learned

78% Consumers who fast-forward through commercials when watching a TIVO/PVR recorded show

73% Households that channel surf to avoid advertising

48% Adults using internet while watching TV when TV and PC are in the same room

30% Less time spent watching television by consumers with internet access

23% Viewers who mute out TV commercials


Advertising has been around for a long time l.jpg
ADVERTISING HAS BEEN AROUND FOR A LONG TIME Learned

  • Internet

  • 1995

  • Radio

  • 1922

  • Television

  • 1941

  • 1700

  • 1850

  • 1900

  • 1950

  • 2000

  • 1860s Magazines

  • 1850 Outdoor moving (railways)

  • 1835 Outdoor

  • 1704 Newspaper


What advertisers say they want l.jpg
WHAT ADVERTISERS SAY THEY WANT Learned

Integrated communications

Do more with less

Thinking consumer-in,not brand-out

Consumer becomes “part of the brand”

From products to services



Today s agenda9 l.jpg
TODAY’S AGENDA Learned

  • Lessons

  • learned

  • The TV media buying process

  • Media:A business in transition


Slide10 l.jpg

THE TV MEDIA BUYING PROCESS Learned

Step 1: Advertiser communicates campaign objectives to agencies

Ad Agency

Advertiser

Increase consumptionamong “stay-at-home” Moms

  • Account Executive

  • Creative Director

  • Media Director

Increase brand awarenessamong college-age males

  • VP, Advertising

  • Brand Manager

  • VP, Marketing

  • Research Director

  • Media Director

Media Agency

Emphasize Tide’s new “Stain Preventor” feature

  • Account Executive

  • Media Director

  • Media Planner


Slide11 l.jpg

THE TV MEDIA BUYING PROCESS Learned

Step 2: Initial Media Plan is created and reviewed/approved by Agency and Advertiser

  • Media Plan

  • Objectives

    • Target audience Reach/Frequency

  • Strategy

    • Allocation of dollars by media type

    • Local market allocation

    • Optimization of schedule

  • Tactics

    • Vehicle ranking & selection

    • Contingency plan

  • Planning Tools

  • Strata

  • NCC

  • eSM

  • In-House Tools


Slide12 l.jpg

  • Buying Tools Learned

  • Donovan

  • Adware

  • Ad2Media

  • In-House Tools

THE TV MEDIA BUYING PROCESS

Step 3a: Media Plan gets divided among the media buyers. TV buyers then request avails from networks and spot markets via RFP’s

Network

RFP

Eastern Spot

RFP

Central Spot

RFP

Television

Western Spot

RFP

Print

Radio

Outdoor


Slide13 l.jpg

THE TV MEDIA BUYING PROCESS Learned

Step 3b: The Creative Team also goes to work on the “copy”

a. Concept

e. Post-Production & Distribution

d. Production

Ideas. Testing. Budgeting

Editing. Duplication. Insertion

b. Client Approval

Sets. Props. Location. Shoot

c. Pre-Production

Creative direction. Budget.

  • Creative Partners

  • Agencies

  • Studios

  • Post-Production

Casting. Scheduling. Storyboarding


Slide14 l.jpg

THE TV MEDIA BUYING PROCESS Learned

Step 4: 50-80% of national inventory is purchased during the “Upfronts” in May as package blocks. Spot is sold as individual avails.

Insertion Orders

  • Trafficking Tools

  • Advision

  • Eclipse

  • Novar


Slide15 l.jpg

THE TV MEDIA BUYING PROCESS Learned

Step 5: Commercials are run and monitored. Shortfalls are corrected with make goods. Affidavits and invoices are generated.

Invoice

  • Monitoring Services

  • Nielsen Media Research

  • CMR

  • Bowden

  • Billing Tools

  • Advision

  • Eclipse

  • Novar


Today s agenda16 l.jpg
TODAY’S AGENDA Learned

  • Lessons learned

  • The media buying process

  • Media: A business in transition


Lessons learned on previous battlefields l.jpg
LESSONS LEARNED ON PREVIOUS BATTLEFIELDS Learned

  • Invent a different – not just better – mouse trap (ad-unit)

    • Uniquely leverage the media

    • Demonstrably superior to existing solutions

    • Priced to value

  • Make it easy to buy

    • Sell it the way they buy it

    • Standardize ad-units, buying process, metrics

  • Develop credible metering and research

    • Third-party validation

  • Create wins with reputable ad-buyers and promote the pioneers and their successes


Currently wining ad units formats are more unique to digital media l.jpg
CURRENTLY WINING AD-UNITS/FORMATS ARE MORE UNIQUE TO DIGITAL MEDIA

Examples

  • Search

  • products

Paid listings on Google

Enormous

  • Online advertising

  • Integrated solutions

Sponsored page on Myspace

Respectable

Banners and buttons on People.com

  • Standard media

  • products

Waiting for broadband


Pricing innovations helped grow market l.jpg

PRICING INNOVATIONS HELPED GROW MARKET

Impression

Cost per exposure

Unit of time spent

Click-through

Internet

pricing models

Cost per response

Lead

Download

$ Revenues

Cost per transaction

Trans-actions


Go where the fish are l.jpg
GO WHERE THE FISH ARE DIGITAL MEDIA

  • Priority product categories

  • Example

  • Categories in which consumers make purchase online

  • Travel, electronics, music, software

  • Categories with hard to reach users (genY, working women)

  • Movies, video games, diet foods

  • Categories in which consumers use web to make purchasing decisions

  • Cars, mortgages, financial services

  • Categories in which privacy matters

  • Botox services, incontinence treatments

  • Categories in which Internet connectivity can broaden consumer experience

  • Dieting, Healthcare, Foods, personal care



ad