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Media Intelligence : 2009 - 2010
For information on your sector go to www.mediabiznet.com.au The challenge is fragmentation Peter Cornelius MD, Nielsen Media Research Are you seeing any trends in terms of ad categories with regard to ad spend? Not really. It seems to be across the board that spend is down, some categories more than others. Certainly areas we track, such as fi nance, telcos and automotive, are all down. Other areas such as entertainment and leisure haven’t been too bad. Food in general has been reasonable – still down – but up in some certain sub-categories. Radio stations and TV networks have been spending, Pay TV has been spending and even online in some cases, so the media subcategory has been not so bad. Recruitment is down. Who will the media winners be when we recover from the downturn? All media, clearly, have a role to play, and the downturn has been across the board, so on that premise, as the market starts to improve, I’d like to think that improvement will be across the board. It is interesting in terms of the actual campaigns that are on, that we have seen a lot of marketing going to branded campaigns that have a lot more of a retail-type fl avour. I would think that as the market starts to improve a lot of those marketers will go back to a brand-value type of activity with less reliance on retail, but that should, theoretically, be across the board. What sort of developments and initiatives are you working on at Nielsen? The challenge for Nielsen and all research companies is the same challenge for media companies and agencies. The media world continues to fragment. There is more and more information available and certainly a major part of our challenge and opportunity is to integrate data more and look at media in a multimedia sense – not only in terms of demography, but in terms of understanding consumers and relating that back to brand purchasing in order to come up with more insight-driven information that clients can utilise which hopefully leads to greater sales and greater return on investment. What are the immediate challenges facing the industry? The use of technology in itself is enormously exciting and has great opportunities but at the same time it is also a challenge. The fragmentation itself creates opportunity for marketers to embrace communication at so many different levels, which is great, but at the same time, that fragments the audience and then the challenge for research companies is to understand those dynamics to bring it all together. There is an enormous opportunity for the broad integration of all of this. But how we do it as an industry, how we commoditise it, how we put a price value on it, who pays – all of those kinds of questions are very big, challenging issues but the end game – the prize – is potentially very signifi cant, it is a process of how we get there. None of that is going to happen overnight because in many ways there are more questions than answers. Incremental value gains the advantage Anne Parsons CEO, MediaCom the mix – specifi cally how this has delivered on their objectives better. Or, if a FTA channel was wanting to increase their share of the budget, and this meant occurring at the expense of another channel, they would need to demonstrate incremental value for getting this advantage: this could take the form of activity into one of their other assets or additional activity on that channel, and so forth. What do you consider the biggest issues facing media in the economic downturn? Presenting a strong value story (to secure advertisers). Advertisers are being appropriately cautious and need to see value in some shape or form to commit spend. However by proving this value, advertisers are prepared to maintain spend. The value they seek will be determined by their objectives. If, for example, we are recommending they use search for a category which is new territory and they are already satisfi ed with their historical approach and the results this has achieved, then the inclusion of search needs to incorporate some research which helps the advertiser understand what the benefi t or advantage is by adding search into What eff ect has the GFC had on agency clients over the past six months? Caution means a very measured approach to spend. For spend to occur there needs to be no risk. Clearly in mitigating any risk, spending for a return is a much easier decision. (The safe choice is) where the media owner is buying into delivering an agreed result – ie people reached, eyeballs impacted, sales delivered. All media continue to offer opportunities and popularity should only be in direct proportion to a media’s ability to meet an advertiser need, for example, they are chosen not because they are liked or popular but because they represent a good potential solution. Does the impact of new media lead to experimentation in advertising campaigns? The level of experimentation is very dependent on the initial points raised. The notion of experimentation or innovation is enticing but clients will only be willing to look at it if their business will not experience any detrimental impact. In order to be confi dent of this it means there will need to be confi dence in results in terms of learnings or delivery. This is very possible within media as we are able to put dimensions or value on all aspects. Are clients demanding more accountability and ROI metrics with their media placement more so than before? Yes, but this has always been the case. By being able to deliver on this lever of measurable return and degree of accountability, agencies are simply meeting client needs on value and mitigated risk. Without some consideration to ROI and appropriate metrics in place advertisers would have no basis on which to review their historical activity and confi dently look at pursuing a different choice of channels. MEDIA Trends + Strategy 14 p11-15_stateOfPlay.indd 13 p11-15_stateOfPlay.indd 13 3/7/09 11:50:58 AM 3/7/09 11:50:58 AM
MT Resource 2010