Media at the Millennium: the Next “BIG THING”

1. Media at the Millennium:the Next “BIG THING” A presentation for Indiana University September 2000

2. Purpose • To discuss trends in the Media Industry today • And why “Getting the Medium Right” is becoming the primary focus of the marketing world

3. What is a Medium?

4. What is a Medium? “An intervening agency, means, or instrument by which something is conveyed or accomplished” Webster’s

5. TheMediaIndustry

6. How many possible media forms can you name?

7. Media selection is the business of making choices

8. The number of choices is growing exponentially each year

9. National TV Cable TV Network TV Syndication PBS Unwired Pay TV Sat. AM Kids, Early Morning, Affiliate, Sponsorships, Early Fringe, VHF, Late Night, UHF, Sports, Daytime, Infomercials, Independent, Prime Access, Direct TV, Primetime, Evening News, Specials Price is Right, Dawson’s Creek, 7th Heaven, Ally McBeal, Law & Order, Friends, All My Children, Today, West Wing, Dan Rather, Cosby, Wasteland, As World Turns, Hercules, Good Morning America, Seinfeld, 60 Minutes, Later Today, Regis Philbin, Oprah, Cheers, Frasier, Xena, Dateline, WWF Smackdown, Roseanne, Cops, Chicago Hope, JAG, Voyager, Shockwave Cinema, ER, 20/20, Felicity, NFL, Pretender, NYPD Blue, Jeopardy, Tonight Show, Wheel of Fortune, Sports night, Roswell, Letterman, 3rd Rock, Charmed, Saved by the Bell, Doug, Cold Feet, Party of Five, WW of Disney

10. Magazine Women’s service, General Interest, Entertainment, Home, Fashion, Beauty, Garden, Epicurean, Finance, News, Do-it-Yourself, Technology, Music, Computers, Travel, Science, etc., etc., et., USNews, Newsweek, Time, Emerge, New Yorker, Parade, USA Today, Business Week, Mac Leans, Jet, Washington Post, LA Times Magazine, New York Times Magazine, etc., TimeDigital, Time Women Select, Time Top Management, Time Business, Time Top Zips, Time Gold, Time Families, etc., etc., … 600 different configurations of Time each week!

11. Growth in Number of Choices has been driven by; • 1. Technology • 2. Better Data/Research • 3. Creativity of the Media Community

12. Technology 1. More Media Choices coming into the home 2 More/Better ways for consumers to manage the choices 3. A means for consumers to “talk back” to the media

13. Better Data/Research 1. Larger/ more complete customer databases 2. Better ‘classification’ systems ( i.e. Geo-demography) 3.More sophisticated modeling

14. Creativity of the Media Community 1. New place-based alternatives 2. Integrated multi-media promotions 3. “Under-the-radar” ideas

15. Of course all of these choices are driven by:

17. What are the Implications for Marketing Professionals ?

18. To succeed marketing professionals need to change their focus

19. Old focus: “Get the message right”

20. New focus: “Get the medium right”

21. The Medium is becoming as or more important than the Message

22. “Getting the medium right” • Often requires rethinking some of the core elements the Marketing Plan • Targeting • Distribution • Promotion

23. Targeting • New media choices allow for new ways to target • can segment consumers on the basis of their media preferences and habits • ie “Movie Enthusiasts” for Max Factor • or on the basis of where they live and what their entertainment habits are • Ie Altoids

24. Targeting • We no longer have to settle for “one-size-fits-all” • each media choice can carry it’s own unique message • i.e. Hallmark Cards Backcover Campaign • and the medium chosen can convey a message by itself • i.e. Kellogg’s lifestage targeting

25. Targeting • Marketer’s need to find the right balance between broadly and narrowly focused media • and THEN concern themselves with getting the message right in each medium

26. Distribution • Media choice is also influencing how marketers distribute their products • opening the door to distribute products in new and more efficient/effective ways

27. Distribution • Media “Versioning” is allowing companies to vary product mixes from market to market across the country • without losing the economies of scale of national advertisers • i.e. McDonald’s

28. Distribution • Web-based marketing is causing many companies to “disrupt the food chain” • traditional distribution schemes are being replaced by more efficient and effective schemes • all spurred by the Internet medium

29. Promotion • Media has become an integral part of the promotion plan • as media buys often become the basis for promotion activity

30. Promotion • Increasingly promotions and events are built around deals with multi-media conglomerates • i.e. a deal with TIME-WARNER could involve a Warner Bros. Movie, an AtlanticRecords CD, a special on TBS,an insert in People, an HBO Video release, and use of Road Runner on-line

31. Promotions • And increasingly the media become the source of promotional ideas • Miller Blind Date • SNL’s 25 Most Intriguing Moments • Max Factor’s “Titanic Video” Promotion

32. Media is becoming a key component of Marketing Strategy

33. Media is becoming a key component of Marketing Strategy • Affecting; • TARGETING • DISTRIBUTION • PROMOTION

34. “Getting the message right” • Marketer’s need to develop a better understanding of the Media Industry • and of the economic pressures that drive it

35. “Getting the medium right” • Expertise is developed primarily in the media departments of ad agencies and in big independent media operations • Like “STARCOM”

36. Starcom is One of North America’s Leading Media Services Companies!

37. You are all invited this evening to hear more about Starcom and careers in the Media Industry!!!

38. Thank You