Media Consumption in Today’s World

Media Consumption in Today’s World

Don E. Schultz

Agora, Inc., and Northwestern UniversityBased on Data from BIGresearch SIMM Studies

PMA Integrated Marketing Conference Chicago

24 March, 2010

The Topic in Your Program Is:

“Media Consumption in Today’s World”

The Topic in Your Program Is:

“Media Consumption in Today’s World”

But, I’m Changing That!

I’m Going to Talk About…..

But, I’m Changing That!

I’m Going to Talk About…..

“Confessions of a Failed Icon”

“Confessions of a Failed Icon”

After 20 Years of Integration, IMC, IM and All the Other Versions and Visions…..

We’re No Closer to Developing a

Holistic, Customer-Focused, Marketing and Communication

System Than Before

After 20 Years of Integration, IMC, IM and All the Other Versions and Visions…..

We’re No Closer to Developing a

Holistic, Customer-Focused, Marketing and Communication

System Than Before

Marketing Sales Country C Region X

CEO

Organizations Still Look Like This….

Organizations Still Look Like This….

Marketing Sales HumanResources

IT/Digital Operations

Source: Adapted from Cranfield School of Management

Marketing and Promotion Still Look Like This…..

Marketing and Promotion Still Look Like This…..

Brand MarketingBrand Marketing

SalesPromotion

Events/Sponsorships

DirectMail

PublicRelations

MediaAdvertising

Consumers

Attitudes Behaviors

??

And, Even the “New Media” Have Fallen into the Same Trap

And, Even the “New Media” Have Fallen into the Same Trap

Brand MarketingBrand Marketing

MobileComm.

Web Based

Social Media

Viral Marketing

SearchAdvertising

Consumers

Attitudes Behaviors

?

And, Even This Conference Still

Follows the Same Old Rules…..

And, Even This Conference Still

Follows the Same Old Rules…..

Promotional materials say: “Integrating the Tools, Techniques, Technologies and Talent”

And, only one session that purports to talk about the reason we are all here…..

CUSTOMERS AND CONSUMERS!CUSTOMERS AND CONSUMERS!

Who’s to Blame?Who’s to Blame?

Stan, Bob and I Wrote the Wrong Integration Script in

the Beginning

Stan, Bob and I Wrote the Wrong Integration Script in

the Beginning All inside-out Focused on only four elements:

advertising, public relations, direct marketing and sales promotion

Trying to create “One Sight and One Sound”

Value to marketers, but, little to consumers

20 Years Ago, Here’s How We Saw the

World of Marketing Communication

20 Years Ago, Here’s How We Saw the

World of Marketing Communication

Agency → Media Organization → Sales Force

MarketerConsumer/Prospect

Messages and Incentives

Unique Products

““Influencing and Persuading Consumers”Influencing and Persuading Consumers”

Source: Adapted from Lavidge and Steiner

A Traditional “Outbound” View, With Marketers in Control

A Traditional “Outbound” View, With Marketers in Control

ConvictionPreferenceKnowledge Attitudes/Awareness

PurchaseBehavior

One-WayOne-Way

LinearLinear

Mar

keti

ng

Co

mm

un

icat

ion

But, While We Icons Weren’t Looking,

The World Changed!

But, While We Icons Weren’t Looking,

The World Changed!

Information Technology Has Given Consumers Control

Information Technology Has Given Consumers Control

ConsumerConsumer

Internet – WiFi

Mobile Telephony

iPods/MP3 -- podcasts

Social Networks

Cable/satellite

Blocking Systems - TIVO/DVRs/ Filters/Pop-up Blockers/etc.

And, Even If the Icons Were

Paying Attention, They Were Playing

“Follow the Weasel”…..

And, Even If the Icons Were

Paying Attention, They Were Playing

“Follow the Weasel”…..

Tossing Old Media and Promotion Out, and

Embracing New Technologies With Abandon

Tossing Old Media and Promotion Out, and

Embracing New Technologies With Abandon

Trying to Find Ways to Break In to Consumer-Created

Networks

Trying to Find Ways to Break In to Consumer-Created

Networks

C

R

O

O

O

O

C

C

R

R

R

RCC

O

R

CR O

C

O

O

marketers

marketers

marketers

21st Century O-C-R Marketplace

O= Customer and Consumer ObservationsC= Customer and Consumer ConversationsR= Customer and Consumer Recommendations

Yet, Consumers Are Holistic….They Integrate Everything for

Themselves

Yet, Consumers Are Holistic….They Integrate Everything for

Themselves

Product/ServiceProduct/Service

Social Networks Social Networks

e-commercee-commerce

AdvertisingAdvertisingCatalogs Catalogs

DMTVDMTV

Direct MailDirect Mail

Customer ServiceCustomer Service

How How People See People See

Brand Brand CommunicationCommunication

Press CoveragePress Coverage Packaging/DisplaysPackaging/Displays

Here’s the World Marketers and Consumers Inhabit….

Here’s the World Marketers and Consumers Inhabit….

Marketer Customers/Prospects

Competitors

Competitors

Competitors

Competitors

Messages and Incentives

Products and Services

Word-of-Mouth New Forms of Media

Web Search

Em

plo

yees

/Rec

om

men

der

s/D

istr

ibu

tors

/Infl

uen

cers

Agency Media Sales Force

Marketers Still Trying to Evaluate Outbound Promotion in a Totally

New System

Marketers Still Trying to Evaluate Outbound Promotion in a Totally

New System

Customer

BrandExperiences

Internet Systems

Electronic SystemsBrand

Experiences

• Web sites• Customer Service• Tech support• Retailers• Distributors• User communities• Blogs• RSS• Influencers• Recommenders

Audiences Organization Agencies Messages

The Problem:All This Is About What We Do

or Want to Do……

There’s Very Little About Customers and Prospects!

The Problem:All This Is About What We Do

or Want to Do……

There’s Very Little About Customers and Prospects!

Yet, Consumers Are the Only

Ones With Money

Yet, Consumers Are the Only

Ones With Money

That’s What Has Led Me to Investigate What Customers

Do…..

Not What Marketers Do!

That’s What Has Led Me to Investigate What Customers

Do…..

Not What Marketers Do!

To Build Relevant Promotional Programs, Starting with

Consumers

To Build Relevant Promotional Programs, Starting with

Consumers Response

Media Exposure

Media Exposure

Media Exposure

MediaConsumer

Potential SynergyVia Simultaneous Media Usage

(Messages Reinforced)

Potential Fragmentation Of Attention

(Message Impact Diluted)

Foreground/Background Media

Time Allocated To Each Media Form

U.S. Simultaneous Media Usage Studies - SIMM

U.S. Simultaneous Media Usage Studies - SIMM

A method of understanding how consumers use and consume media today and the impact it has on them

Methodology Conducted twice per year by BIGresearch in the USA since 2002 --

we provide analysis 14 separate waves (15th in analysis now) 200,000+ individual responses (17,000 more in Wave 15) Drawn from on-line interactive base of 60 million individuals Double opt-in methodology Captures media usage, retailer preference, influence of media, past

and future purchases, etc. Includes 31 external media forms and 23 in-store promotional

activities Accuracy of .01 level Benchmarked to non-online studies Weighting/balancing of 14 US Census 2000 age-sex cells

System active in China. Testing in Mexico and other countries

When you watch TV, do you simultaneously go online?

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Regularly

Occasionally

Never

Male Female

Male FemaleRegularly 22.0% 26.6%Occasionally 36.4% 33.7%Never 41.6% 39.7%R/O 58.4% 60.3%

0% 5% 10% 15% 20% 25% 30% 35% 40%

Regularly

Occasionally

Never

Male Female

When you go online, do you simultaneously watch TV?

Male FemaleRegularly 29.4% 35.3%Occasionally 31.3% 29.8%Never 39.4% 35.0%R/O 60.6% 65.0%

Clear Evidence of New Promotional Marketing

Issues

Clear Evidence of New Promotional Marketing

Issues What comprises an “audience”?

Consumers create “foreground and background” media for themselves and for the occasion

What is the impact of “conflicting messages/promotions” delivered at the same moment in time?

Simultaneous multi-media usage suggests all promotional audiences are likely “overstated” and “overpriced”

But, Understanding How

Consumers Use Media and Promotional Activities,

Change How Marketers Plan and Implement

Their Programs

But, Understanding How

Consumers Use Media and Promotional Activities,

Change How Marketers Plan and Implement

Their Programs

Four Critical Measures in Media Consumption

Four Critical Measures in Media Consumption

What media is accessed Amount of time spent with each media

form Media combinations – what media used

together and simultaneously Which media form has the greatest

influence on product purchase

How Much Time Consumers Spend With Each Media Form

First Quarter, 2008 – BIGresearch

How Much Time Consumers Spend With Each Media Form

First Quarter, 2008 – BIGresearch

Avg Minutes per Day

Email 131.3TV 129.6Internet 127.5Radio 93.5Direct 56.3Magazines 49.1Newspaper 44.8IM 40.8Games 36.6Satellite 22.0Web Radio 14.4Blog 11.7

Measures #1 and #2

More Important: the Media Forms People Use

Together…

Their Media Combinations

More Important: the Media Forms People Use

Together…

Their Media Combinations

US Media Combinations US Media Combinations Primary Medium (When …,do you simultaneously ….)

(Regularly only)

Source: 1st Quarter, 2008 – BIGresearch

Online TV Maga-zines

News-papers

Direct Mail

Cell Phone

Radio

Online 26.2 6.1 8.1 9.9 13.9 17.1

TV 37.5 20.2 24.1 21.4 14.9 8.0

Magazines 7.0 10.3 5.0 8.3

Newspaper 10.3 11.6 4.7 11.3

Direct Mail 21.0 14.2 6.7 10.7

Radio 21.7 3.8 11.8 12.6 12.2 11.7

Measure #3

Media Combinations Are What Create Media

Synergy…

The Biggest Challenge in Promotional Planning Today!

Media Combinations Are What Create Media

Synergy…

The Biggest Challenge in Promotional Planning Today!

Influence Media Form Has on Consumer Purchase Decisions

U. S. Average* Influence by Media Form

Influence Media Form Has on Consumer Purchase Decisions

U. S. Average* Influence by Media Form

% Influence

Word-of-Mouth 36.2

Coupons 28.4

Inserts 21.5

TV 20.8

Newspapers 20.0

Read Article 19.8

In-Store 19.6

Direct 19.1

Magazines 17.0

Cable 13.6

% Influence

Radio 13.1

Internet 12.3

Email 11.7

Outdoor 7.2

Yellow Pages 7.0

Blog 3.1

Satellite 3.1

IM 2.9

Web Radio 2.7

Picture Phone 2.2

*Across 8 product categories, Apparel/Clothing, Automobile, Eating Out, Electronics, Grocery, Home Improvement, Medicines, and Telecom/Wireless

Source: 1st Quarter, 2008 – BIGresearch

Measure #4

With Those Four Measures, Predictive Models Can be

Built….

What Promotional Forms You Should be Using by

Product Category

With Those Four Measures, Predictive Models Can be

Built….

What Promotional Forms You Should be Using by

Product Category

For Example, In the Computer Category,

What Media Forms Do Consumers Prefer?

For Example, In the Computer Category,

What Media Forms Do Consumers Prefer?

Do you plan to make any of the following major purchases within the next 6 months?

Example: ComputerNo 84.81%

Yes 15.19%

Total 100.00%

SIMM, June, 2008

Purchase Intent and Media Influence

Purchase Intent and Media Influence

Do you plan to make a computer purchase within the next 6 months by Media Influence

No Yes TotalCoupons 26.8 31.0 27.4Inserts 20.6 25.0 21.3Newspapers 19.8 24.7 20.5TV 19.2 26.8 20.3In-Store 18.3 23.3 19.1Direct 18.2 23.1 18.9Magazines 15.6 22.7 16.7Cable 12.3 19.3 13.3Radio 11.7 18.5 12.7Internet 10.6 19.3 11.9Email 10.4 16.8 11.4Yellow Pages 6.5 10.5 7.1Outdoor 6.3 11.0 7.0

What Would Be the Best Media Combination to Reach These Intended Computer Purchasers?

What Would Be the Best Media Combination to Reach These Intended Computer Purchasers?

Pruned CHAID TreePlan to Buy a Computer by Categories of Media

Influence

Pruned CHAID TreePlan to Buy a Computer by Categories of Media

Influence

15.19%(100.0%)

11.2%(60.9%)

17.6%(18.8%)

23.3%(21.1%)

14.9%(17.9%)

17.7%(6.4%)

19.6%(12.6%)

15.2%(4.7%)

22.2%(7.9%)

20.9%(12.1%)

26.6%(9.0%)

20.6%(3.0%)

29.5%(6.05)

No Internet Low Internet High Internet

Some Radio

Some Email

Some Email

No Cable Some Cable

Low Magazine High Magazine

Low Email High Email

Total Plan to Buy Computer

Now, The Decision Is Now Based on

Consumers and Consumer Preferences, Not on Media

Distribution, Coverage, CPM or Other Traditional Planning

Factors

Now, The Decision Is Now Based on

Consumers and Consumer Preferences, Not on Media

Distribution, Coverage, CPM or Other Traditional Planning

Factors

All Fine So Far, But,

That Still Doesn’t Determine How Much Money We Should

Invest!

All Fine So Far, But,

That Still Doesn’t Determine How Much Money We Should

Invest!

How an Integrated Model Works in Autos

How an Integrated Model Works in Autos

Millions of Dollars Percent

Magazines $10,801 17.6

Newspapers 7,209 11.8

Outdoor 1,038 1.7

TV 34,826 56.8

Radio 3,226 5.3

Internet 4,184 6.8

Measured Media $61,283 100.0

2007 Top 100 Advertiser Media Spending Advertising Age – TNS

Spending by the Top Seven Automobile Brands

Spending by the Top Seven Automobile Brands

Millions of Dollars Percent

Magazines $1,507 18.4

Newspapers 538 6.6

Outdoor 119 1.5

TV 5,206 63.6

Radio 252 3.1

Internet 558 6.8

Measured Media $8,180 100.0

2007 Auto Advertisers (Top Seven) Among Top 100 Media Spending -- Advertising Age – TNS

Adding Purchase Intentions from SIMM Reports

Adding Purchase Intentions from SIMM Reports

*2007 TNS based on the seven manufacturers **Includes all brands for each manufacturer and excludes other manufacturers brands, SIMM June ‘08

2007 Auto Share of Voice* and Reported First Choice in Next 6 months**

SOV % 1st Choice % Ratio

General Motors Corp

24.2 26.2 1.08

Ford Motor Co. 20.3 17.9 .88

Toyota Motor Corp. 14.1 18.0 1.27

Chrysler 14.0 13.3 0.95

Nissan Motor Co. 11.4 7.0 0.62

Honda Motor Co. 10.7 14.9 1.40

Hyundai Motor Co. 5.2 2.6 0.49

Calculating the Cost Weighted by Influence

Calculating the Cost Weighted by Influence

CPM Influence Influence Points/$100

0Magazines $12.68 17.05 13.45

Inserts 16.00 21.49 13.43

Outdoor 7.35 7.28 9.88

Radio 14.43 13.08 9.06

Internet 15.33 12.33 8.04

TV 26.84 20.89 7.78

Newspapers 33.18 19.98 6.02

E-Mail 20.00 11.73 5.87

Blogs 9.00 3.17 3.52

Satellite 9.00 3.13 3.48

Product Placement 70.00 9.10 1.30

But, All This Stuff Only Matters If You’re in the

Market for an Auto

But, All This Stuff Only Matters If You’re in the

Market for an Auto

Planning to Purchasing a Car or Truck in Next 6 Months June 2007

Plan to Purchase (Planners) 11.4%

Don’t Plan to Purchase 88.6%

Determine Media Form Influence on the Target

Market

Determine Media Form Influence on the Target

Market All Auto

InfluencePlanner

InfluenceUsage CPM

TV 21.4 31.0 139.0 26.84

Newspapers 19.6 29.2 54.1 33.18

Magazines 16.1 25.8 58.4 12.68

Radio 14.2 22.9 102.0 14.43

Internet 10.7 18.5 147.3 15.33

Outdoor 10.3 17.2 14.4 7.35

Then, Calculate Optimal Allocation Among Planned

Purchasers

Then, Calculate Optimal Allocation Among Planned

Purchasers

TV, 23%

Radio, 23%Outdoor, 5%

Internet, 25%

Newspapers, 7%

Magazines, 17%

Optimal Dollar Allocation for Car and Truck Purchase Planners

(June 2007)

Compare Present or Past Car Advertising Allocation to

Optimal Investment – Identify Changes

Compare Present or Past Car Advertising Allocation to

Optimal Investment – Identify Changes

Comparison of Car and Truck Manufacturer Advertising* and the Optimal Allocation 2007$**

*Top 7 auto advertisers from top 100 list**Millions

2007 $$** % Optimal $

% Change $

Internet 558 6.8 2,079 25.4 1,521

Radio 252 3.1 1.891 23.1 1,639

TV 5,206 63.6 1,874 22.9 -3,332

Magazines 1,507 18.4 1,386 16.9 -121

Newspapers 538 6.6 556 6.8 18

Outdoor 119 1.5 393 4.8 274

With This Type of Data, You Now Know Not Only What

Percentage to Various Activities,

But, How Many Dollars!

With This Type of Data, You Now Know Not Only What

Percentage to Various Activities,

But, How Many Dollars!

If This Sounds Like a FictionalTale…..It’s Not!

The Same Approach Can be Used in Nine Product Categories Today

If This Sounds Like a FictionalTale…..It’s Not!

The Same Approach Can be Used in Nine Product Categories Today

Apparel/Clothing Automotive Eating Out Electronics Financial

Groceries Home Improvement Medicines Telecommunication

Do I Feel Badly About Being a Failed Icon?

No More Than Peter Drucker,

Who Was Hired by General Motors to Bring Modern

Management to That Firm in 1943!

Do I Feel Badly About Being a Failed Icon?

No More Than Peter Drucker,

Who Was Hired by General Motors to Bring Modern

Management to That Firm in 1943!

GM Ignored Drucker’s Advice and

It Only Took Them 66 Years to Enter Bankruptcy

GM Ignored Drucker’s Advice and

It Only Took Them 66 Years to Enter Bankruptcy

So, I’ve Still Got Some Time Left!

So, I’ve Still Got Some Time Left!

Available from amazon.com

These Lessons and More Are in This New Media and

Promotional Planning Book

These Lessons and More Are in This New Media and

Promotional Planning Book

If You Have Questions, I Will Answer or Avoid

Them Now!

If You Have Questions, I Will Answer or Avoid

Them Now!

Don E. Schultz, Ph.D.dschultz@northwestern.edu