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The World of Media Chapter 6 “The Eyeball Business” INTRODUCTION 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 eyeball business
“The Eyeball Business”

INTRODUCTION

  • A different kind of consumption
  • Time and Attention
the eyeball business3
“The Eyeball Business”
  • A different kind of consumption
  • Time and Attention
  • Media Receive Payment from…
the eyeball business4
“The Eyeball Business”
  • A different kind of consumption
  • Time and Attention
  • Media Receive Payment from…
  • Advertisers
the eyeball business5
“The Eyeball Business”
  • A different kind of consumption
  • Time and Attention
  • Media Receive Payment from
  • Advertisers
  • Consumers
  • Both
the eyeball business6
“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
the eyeball business7
“The Eyeball Business”
  • Consumer Paid Media [Tickets/Subscriptions]
    • Some Cable (HBO, etc.)
    • Movies
    • CDs & Concerts
    • Magazines
    • Public Radio/TV
  • “Sponsorships”
    • Event Marketing
the eyeball business8
“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
the world of media9
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

early media history
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
early media history11
Early Media History:
  • Babylonian Posters
  • Graffiti in Pompei
  • Egyptian Obelisks
  • Hawkers & Criers
  • US Media History
  • Printed Handbills
  • Almanacs/Pamphlets...
early media history12
Early Media History:
  • Babylonian Posters
  • Graffiti in Pompei
  • Egyptian Obelisks
  • Hawkers & Criers
  • US Media History
  • Printed Handbills
  • Almanacs/Pamphlets...
  • Newspapers
slide13

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
slide14

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
early broadcast radio16
Early Broadcast - Radio
  • 1906 - First radio program broadcast
  • Early commercials unobtrusive
  • Beginnings of sponsorship
  • Audiences grow
  • Advertiser interest grows
  • Then, it’s the 30s...
early broadcast radio17
Early Broadcast - Radio

TheGoldenAge of Radio

  • First Free Mass Media - 100% paid by advertisers
  • Hit Programs
  • MassAudiences
  • Major Brands are Born
    • Example: Wheaties
slide18

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
slide19

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
slide20

Early Broadcast - Television

  • A Powerful Selling Tool!
today s media world
Today’s Media World
  • Next, we’ll cover…
  • Consumers & The Media
  • Media Conglomerates
  • Entertainment Brands

Today’s Media World

consumers the media
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
consumers the media23
Consumers & The Media
  • A Media-Saturated Culture
    • Nothing like it before
    • Incredible richness of options
  • How Many Messages a Day?
consumers the media24
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!
media conglomerates
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
media conglomerates26
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, UPN, Nickelodeon, Blockbuster Video)
    • Merges w. CBS (TV+ radio + billboards)
media conglomerates27
Media Conglomerates
  • World of The Media Giants
  • Four Very Large - Primarily Media
    • Time-Warner (+ AOL)
    • Disney: ABC, A&E, Disney, ESPN, Miramax...
    • CBS - broadcasting + Viacom (cable)
    • News Corporation (FOX)
  • Three Other “Interesting” Giants
    • SONY (Entertainment + Electronics)
    • Seagram (Universal + Music)
    • NBC (5% of General Electric)
  • Let’s look at The Big Four...
media conglomerates28

Time-Warner

26.8 billion

(pre-AOL)

Walt Disney

22.9 billion

(ABC/Movies)

Viacom/CBS

18.9 billion

(CBS/MTV)

News Corp

13.6 billion

(FOX)

  • Movies/TV
  • Broadcast/Cable
  • Music/Publishing
  • Theme Parks
  • Other
Media Conglomerates
  • World of The Media Giants
  • “The Big Four”
media conglomerates29

News Corp

13.6 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

media conglomerates30

News Corp

13.6 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
  • NFL for Fox Network
  • FOX Sports (cable)
  • The FOX Network -

Fox News, Sports, Family

Channel, 20th Century Fox,

Star TV, BSkyB, The Times

N Y Post,.LA Dodgers

  • A Global Empire
    • Satellites everywhere
slide31

Media Evolution

  • Media are becoming Brands
    • Growing across media platforms
  • Driven by conglomerates, but all media are developing...

Entertainment Brands

entertainment brands
Entertainment Brands
  • Now let’s cover…
  • Media - The New Brands
  • Entertainment Brands
  • Entertainment Brand Economics
media the new brands

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
entertainment brands34
Entertainment Brands
  • Entertainment Brand Economics
    • A different kind of consumption
    • Media “sells eyeballs”
  • Time and Attention
  • Payment from…
    • Advertisers
    • Consumers
    • Both
  • Synergy (AOL sells Time Magazine)
entertainment brands35

Bob Levin,

SONY

Marketing

Entertainment Brands
  • Example: Godzilla
    • Old Japanese brand - re-staged
    • Coordinated by SONY Management
entertainment brands36

Bob Levin,

SONY

Marketing

Entertainment Brands
  • Example: Godzilla
    • Old Japanese brand - re-staged
    • Coordinated by SONY Management
  • Publicity & Advertising
  • Size Does Matter
entertainment brands37
Entertainment Brands
  • Example: Godzilla
    • Old Japanese brand - re-staged
    • Coordinated by SONY Management
    • Publicity & Advertising
  • Size Does Matter
  • Big Media
  • + Big Tie-Ins
entertainment brands38
Entertainment Brands
  • Example: Godzilla
    • Old Japanese brand - re-staged
    • Coordinated by SONY Management
    • Publicity & Advertising
  • Size Does Matter
    • Big Media
  • + Big Tie-Ins
  • Building the Brand
entertainment brands39
Entertainment Brands
  • Example: Godzilla
    • Old Japanese brand - re-staged
    • Coordinated by SONY Management
    • Publicity & Advertising
  • Size Does Matter
    • Big Media
  • + Big Tie-Ins
  • Building the Brand
  • More Marketing Tie-ins
  • Toys & Spin-offs
the media boom
The Media Boom!

The Media Boom!

  • In the last 20 years…
    • 1,500 TV stations
    • 78% of US homes receiving cable
    • 10,625 magazines
      • 900 new magazines in 1996 alone
  • More Media More Often
    • Even in a media-saturated society like ours, there’s always room for one more.
the media boom41
The Media Boom!
  • Four Factors Changing Media
    • Media Technology
      • Digital Explosion
      • New Delivery Systems - Internet, video stores, etc.

CD ‘Zine from Apple

the media boom42
The Media Boom!
  • Four Factors Changing Media
    • Media Technology
      • Digital Explosion
      • Delivery Systems - Internet, video stores, etc.
  • 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)
the media boom43
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
you the world of media
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!
everywhere you look
Everywhere you look...

It’s a New Brand World!