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The World of Media. Chapter 1. Media is…. Media is … Strategic planning for a marketer’s advertising budget Media is … media management, program/content development, station management, etc. Media is … Buying and selling time and space Media is … media research and analysis

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Media is
Media is…

  • Media is … Strategic planning for a marketer’s advertising budget

  • Media is … media management, program/content development, station management, etc.

  • Media is … Buying and selling time and space

  • Media is … media research and analysis

  • Media is … Strategic decision-making on all fronts

  • Advertising makes media happen


A brief history of media

Today’s media has evolved from ancient times: posters, hawkers, graffiti and coins

Print and modern media

1455 Guttenberg develops printing with moveable type.

1650 first daily newspaper and the first newspaper ads, in Germany

1841 the first US ad agency opens its doors, primarily a media buying/broker service

1892 the four-color rotary press is invented and magazines take off

A Brief History of Media


Example campbell s soup an early media success

Started with posters in transit advertising, moved on to newspapers, and then to magazines.

By 1914, Campbell’s had dropped newspapers completely in favor of magazines

Example: Campbell’s Soup An early media success


Print today in the us
Print Today in the US newspapers, and then to magazines.

  • 1,437 Daily Newspapers

    • More than $70 billion in total revenue

    • Ad revenue $47 billion

  • More than 19,000 Magazine titles

    • About $32 billion in total revenue

    • Ad revenue about $18 billion

      2006 Figures

      Ad Age 2007 Fact Book


Broadcast media radio
Broadcast Media - Radio newspapers, and then to magazines.

  • 1906 the first radio program of voice and music is broadcast in the US

  • By the 1930’s as many as 88 million Americans tuned in to The Lone Ranger every week

  • Radio today a $21 billion industry, predominantly local spending -

    • 100% Advertiser supported


Broadcast media tv
Broadcast Media - TV newspapers, and then to magazines.

  • Invented by Philo Farnsworth

    • Only 16 years old when he patented

    • He was 21 when he assembled the first TV

  • The first TV commercial

    • Produced for Royal Crown Cola

  • Penetration of TV sets exploded in the 50’s largely because of accessibility

    • Mass production lowers prices

    • Department store credit plans make it easy to buy


Rapid growth in television penetration
Rapid Growth newspapers, and then to magazines.In Television Penetration


Broadcast media cable tv
Broadcast Media - Cable TV newspapers, and then to magazines.

  • Started in the 50’s

  • Really took off in the 80’s

  • Three major developments contributed

    • Domestic satellite relay systems

    • TV superstations

    • Pay cable services

  • Cable Today

    • One of the fastest growing media

    • Over $19 billion in advertising revenues


Cable tv penetration boomed in the 80 s
Cable TV Penetration newspapers, and then to magazines.Boomed in the 80’s


Today s media world
Today’s Media World newspapers, and then to magazines.

  • Big Business

    • Time Warner at #1 ($34b), significantly more than #2 Comcast ($27b)

  • Three major media categories

    • Print including newspapers, magazines and out-of-home

    • Broadcast including radio and TV

    • Other media including the mailbox, the telephone and the computer


Print media
Print Media newspapers, and then to magazines.

  • Newspapers slipping– still a major force.

    • Circulation dropping significantly

    • Advertising spending still increasing, about 2/3 of total newspaper revenues

    • Alternative newspapers making a name for themselves

  • Magazines business is going strong with new growth particularly in the special interest and business titles

  • Out-of-home a real growth area, not just billboards any more


Broadcast media
Broadcast Media newspapers, and then to magazines.

  • Radio is a powerful niche media

    • With a vast penetration, almost every home in America has a radio, the average home has 6

    • with a station format to fit almost any taste

    • With a very local emphasis

  • Television is almost everything to advertisers

    • Television in almost every home

    • The average home has 2.5 TV sets


A television primer
A Television Primer newspapers, and then to magazines.

  • Four kinds of TV

    • Network

    • National Cable

    • Syndication

    • Local

  • Six ways to buy TV

    • Nationally:

      • Network, National Spot, National Cable

    • Locally:

      • Local Spot, Syndication, Non-network Cable


Network television
Network Television newspapers, and then to magazines.

  • Five broadcast networks

    • UPN and WB combined in 2006 to form the CW network

  • Dramatically decreasing audience share


Declining network television ratings
Declining Network newspapers, and then to magazines.Television Ratings


Network television1
Network Television newspapers, and then to magazines.

  • Five broadcast networks

  • Dramatically decreasing audience share

  • Network O&O’s and affiliates

    • Networks pay the cost of programming

    • Local stations surrender advertising time and dollars to the networks (about 90%)


Syndicated television
Syndicated Television newspapers, and then to magazines.

  • Syndicators sell, license and distribute programming to TV stations

    • First-run original programs like talk shows and game shows

    • Re-run old (and not so old) off-network shows like ER and Law & Order

  • Syndicators used to wait (two to three years) before syndicating re-runs, but demand is so strong many shows now go to re-runs after one year.


National cable television
National Cable Television newspapers, and then to magazines.

  • Pay TV on multiple levels

    • Ad supported

      • basic cable networks like MTV, CNN, Nickelodeon

      • Superstations like WGN, WTBS, WPIX

      • Local original programming usually community or educational programming

    • Pay cable networks like HBO or Showtime


Consumers media
Consumers & Media newspapers, and then to magazines.

  • A media saturated culture

    • Advertising is everywhere

  • As new media emerge, Americans shift their time spent with the old media to accommodate the new

  • Remember, the US media belongs to you

    • You choose.

  • Fragmentation has forced a media response.


Media conglomerates
Media Conglomerates newspapers, and then to magazines.

  • Media is big business where the stakes are high and branding is the new wave

  • Competition is intense

  • Branding is a way to differentiate

    • FOX product geared to a younger audience

    • ESPN product is everything sports (ESPN Zone, ESPN Radio, ESPN magazine)

  • Entertainment Brands

    • A mixed media work of art

    • Publicity, trailers, advertising, merchandising all work to create a short-lived cultural event


Summary
Summary newspapers, and then to magazines.

  • Media History 101

  • Today’s Changing Media World

  • Consumers & Media

  • Media Conglomerates and Entertainment Brands