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The World of Media

The World of Media. Chapter 6. “The Eyeball Business”. A different kind of consumption. Time and Attention. “The Eyeball Business”. A different kind of consumption Time and Attention. Media Receive Payment from…. “The Eyeball Business”. A different kind of consumption

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The World of Media

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  1. The World of Media Chapter 6

  2. “The Eyeball Business” • A different kind of consumption • Time and Attention

  3. “The Eyeball Business” • A different kind of consumption • Time and Attention • Media Receive Payment from…

  4. “The Eyeball Business” • A different kind of consumption • Time and Attention • Media Receive Payment from… • Advertisers

  5. “The Eyeball Business” • A different kind of consumption • Time and Attention • Media Receive Payment from • Advertisers • Consumers • Both

  6. “The Eyeball Business” • Advertiser Paid Media [100% Ad Revenues] • Television • Radio • Out-of-Home • Direct Marketing • Advertiser + Consumer Paid Media [Ad Revenues + Subscriptions] • Newspapers • Magazines • Cable TV

  7. “The Eyeball Business” • Consumer Paid Media [Tickets/Subscriptions] • Some Cable (HBO, etc.) • Movies • CDs & Concerts • Magazines • Public Radio/TV • “Sponsorships” • Event Marketing

  8. “The Eyeball Business” • Consumer Paid Media [Tickets/Subscriptions] • Some Cable (HBO, etc.) • Movies • CDs & Concerts • Magazines • Public Radio/TV • “Sponsorships” • Event Marketing • +Product Placement in Movies/TV

  9. “Eyeball Evolution” • Changing Habits / Changing Media • Old Media Models in trouble… • Newspapers, Network TV, some Magazines • Still lots of TV, but… • Many More Channels • Audiences Fragmenting • Mass Media is losing mass • The Second Screen • Internet/Social Media • A Powerful Combination • Which results in…

  10. “Eyeball Evolution” • The Audience Taking Control • Media becoming interactive • Media companies losing control • Local impact / Global impact • Easy entry but… • No easy profits • Change quick as a blink. • The Third Screen • Latest Media Connection • Evolution continues…

  11. The World of Media • Early Media History • Today’s Media World • Consumers & the Media • Media Conglomerates • Entertainment Brands • The Media Boom! • Current Media Choices (Part 2) The World of Media

  12. Early Media History: • The legend of the First mass-appeal advertising • Over 2000 years ago in N. African City of Cyrene • Silver coins carried a product message • The coins advertised a local plant

  13. Early Media History: • Babylonian Posters • Graffiti in Pompei • Egyptian Obelisks • Signage • Hawkers & Criers

  14. Evolution / Revolution • The Printing Press • = The Reformation • = Thirty Years War • = The American Revolution

  15. Early US Media History • Handbills, Almanacs, Pamphlets... • Benjamin Franklin • Poor Richard’s Almanac • Pennsylvania Gazette • “Common Sense” • Thomas Paine • Argued for Revolution • Newspapers • Viewed as essential • “Freedom of the Press”

  16. NY Journal 1788 Origins of Print - Newspapers • 1650 - first newspaper ad - Germany • 1704 - first US ads - Boston • Early newspaper ads like today’s classified ads • Ad clutter - even then. • Newspaper advertising grew along with business and growing urban centers

  17. Origins of Print - Magazines • 1650 - Illustrated London News • Printing Technology improves • 1871 - halftone process • 1892 - 4-color rotary press • J. Walter Thompson & Cyrus Curtis make magazines ad media • Economic Growth • Literate middle class • Consumer products • Publishing becomes a Very Big Business

  18. Consumers & The Media • Marshall McLuhan Media Evolution • “we evolve as our media evolves.” • From ear-driven to eye-driven to… • Advertising Changes as Media Changes

  19. Early Broadcast - Radio

  20. Early Broadcast - Radio • 1906 - First radio program broadcast • Early commercials unobtrusive • Beginnings of sponsorship • Audiences grow • Advertiser interest grows • Then, it’s the 30s...

  21. Early Broadcast - Radio TheGoldenAge of Radio • First Free Mass Media - 100% paid by advertisers • Hit Programs • MassAudiences • Major Brands are Born • Example: Wheaties

  22. Early Broadcast - Television • Philo Farnsworth The teen-ager who invented television • Developed cathode ray • 1927 applies for patent • 1930 patent granted • 1939 - introduced by RCA at World’s Fair • 1946 - 10 TV stations • 1949 - coaxial cable reaches Chicago - this allows network broadcasts

  23. 1953 - FirstColor TVBroadcast - RCA Early Broadcast - Television • First TV ads • Royal Crown Cola • BBDO takes lead • 1951 1.5 million TV sets • 1952 15 million TV sets • TV Networks develop

  24. Early Broadcast - Television • A Powerful Selling Tool!

  25. Today’s Media World • Next, we’ll cover… • Consumers & The Media • Media Conglomerates • Entertainment Brands Today’s Media World

  26. Consumers & The Media • A Media-Saturated Culture • Nothing like it before • Incredible richness of options • How Many Messages a Day?

  27. Consumers & The Media • A Media-Saturated Culture • Nothing like it before • Incredible richness of options • How Many Messages a Day? • The Great American Time Crunch • More time for media • Less time for… • Remember - they’re your eyeballs!

  28. Media Conglomerates • From Local to Global • The First Conglomerates - local - starting with the newspaper • Example: WGN • “World’s Greatest Newspaper” • #1 AM station, major independent TV station (WGN, now a superstation) • Additional media properties • Ongoing partnerships/mergers • Partner w. Warner for WB Network • Merge w. LA Times

  29. Broken Business Models • Example: The Tribune Company • Newspaper = Dramatic declines in • Readership • Advertising Revenue • Television = not so super • Increase in clutter/competition • Decline in viewership / ad revenue • Even with the #1 AM station… • Ad revenues still declining • Plus corporate problems • Tax/Buyout problems

  30. Media Conglomerates • From Special to General • Growth based on special expertise: • Time = magazines • Disney = movies/theme parks • CBS = broadcasting • Opportunistic Expansion: • “Bigger Financial Fish” eat smaller ones • Mergers also create “Bigger Fish” • Example: ViaCom (Paramount, MTV, Nickelodeon) • Merges w. CBS (TV + radio + billboards)

  31. Media Conglomerates • World of The Media Giants • Four Very Large - Primarily Media • Time-Warner • Disney: ABC, A&E, Disney, ESPN, Miramax... • CBS - broadcasting + Viacom (cable) • News Corporation (FOX) • Other “Interesting” Giants • SONY (Entertainment + Electronics) • NBC Universal (TV + Movies) • Let’s look at The Big Four...

  32. Media Conglomerates • World of The Media Giants • Top 6 Media Companies Source: AdAge, 12/31/2012 #1 Comcast Corp. $44,981 #2 DirecTV $22,310 #3 Walt Disney Co. $21,546 #4 Time Warner $19,894 #5 Time Warner Cable $18,104 #6 News Corp. $17,314

  33. News Corp 17 billion (FOX) Media Conglomerates • News Corporation (FOX) • Rupert Murdoch • Understood power of media • Australian Newspapers • More newspapers, more media • The FOX Network • The FOX Network - Fox News, Sports, Family Channel, 20th Century Fox, Star TV, BSkyB, The Times N Y Post,.LA Dodgers

  34. News Corp 17 billion (FOX) Media Conglomerates • News Corporation (FOX) • Rupert Murdoch • Understood power of media • Australian Newspapers • More newspapers, more media • The FOX Network • Sports as strategic tool • The FOX Network - Fox News, Sports, Family Channel, 20th Century Fox, Star TV, BSkyB, The Times N Y Post,.LA Dodgers • NFL for Fox Network • FOX Sports (cable) • A Global Empire • Satellites everywhere

  35. Media Evolution • Media are becoming Brands • Growing across media platforms • Driven by conglomerates, almost all media are developing into... Entertainment Brands

  36. Entertainment Brands • Now let’s cover… • Media - The New Brands • Entertainment Brands • Entertainment Brand Economics

  37. A radio network • A magazine Media - The New Brands • Media no longer channel specific • Technology no longer a limitation • The Brand Concept Emerges • Example: ESPN • A sports brand 3 “flavors” of cable • A sports bar

  38. Entertainment Brands • Entertainment Brand Economics • A different kind of consumption • Media “sells eyeballs” • Time and Attention • Payment from… • Advertisers • Consumers • Both • Synergy (NBA on ESPN, TNT, ABC)

  39. Entertainment Brands • Example: Spiderman • Marvel Comics Superhero - re-staged • Appeared in • Comics • Cartoons • Movies • Accessories

  40. Entertainment Brands • Example: Spiderman • Publicizing the movie • ambient ads located on buildings • ambient ads located in bathrooms

  41. The Media Boom! The Media Boom! • In 2011… • Measured Media Spending for the U.S. $131.03 Bill. • Annual Newspaper Advertising $17.6 Bill. • Broadcast Radio Stations 15,256 • Basic Cable Subscribers 56.4 Mill. • Digital Cable Subscribers 46.8 Mill. • U.S. Adult Smart Phone Users 175.8 Mill. • U.S. Internet Users 244.5 Mill. • More Media More Often • Even in a media-saturated society like ours, there’s always room for one more.

  42. The Media Boom! • Four Factors Changing Media • Media Technology • Digital Explosion • New Delivery Systems - Internet, video stores, etc. CD ‘Zine from Apple

  43. The Media Boom! • Four Factors Changing Media • Media Technology • Digital Explosion • Delivery Systems - Internet, Netflix, DVDs • Media Competition • From monopoly to hyper-competition • Mature Market - huge need for “hits” • Media Audiences • Fragmenting, but more valuable • Media Expenditures • Going across platforms (i.e. ESPN)

  44. The Media Boom! • The Entertainment Economy • Part of “PowerShift” • Creating Big New Brands • Media as Brands • Marketing becoming more important • + Entertainment Brands • Marketing/Advertising is critical • Great Expansion & Volatility • Opportunity is everywhere

  45. You & The World of Media • So, how does this affect you? • In your life? • In your possible career opportunities? • After class… • What media will you turn on? • And what medium turns you on? • Remember, they’re your eyeballs!

  46. Everywhere you look... It’s a New Brand World!

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