Telecoms & Takeovers. Strategic Media Planning for Agencies. James Muldrow. Display Advertising Specialist
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1 Telecoms & Takeovers Strategic Media Planning for Agencies James Muldrow Display Advertising Specialist
2 Agenda The Growing Display Ad Market Strategy vs. Tactics Data-driven Media Planning Analyzing Media Planning (Telecom Industry) Homepage Invasion (Takeovers) 2
3 The Growing Display Ad Market 3
4 More advertising than ever in 2010 Interactive advertising revenue is on a strong upward trajectory. ** Nearly all types of ad formats are showing positive movement and marketers across all advertising categories are increasing their investment in digital media. ** - Sherrill Mane, SVP, Industry Services, IAB 20% impression growth 26% spend growth 4 * Source: comscore Ad Metrix ** Source: Internet Ad Revenues Break Records, Climb to More Than $12 Billion for First Half of 10
5 New faces in the top 10, but the old guard still dominates Publisher 2010 Impressions (000)* 2010 Impressions Rank Change from 2009 Impressions Rank 2010 Spend Rank Facebook.com 1,019,891, Yahoo! Sites 529,378, Microsoft Sites 247,474, Fox Interactive Media 200,218, AOL, Inc. 136,834, Google Sites 128,246, Turner Digital 75,786, Glam Media 44,157, ebay 32,883, ESPN 32,405, Facebook now leads as the #1 publisher of display ad impressions Top 8 from 2010 remain the top 8 so far in * Source: comscore Ad Metrix
6 Top advertisers continue to drive strong online presence Advertiser Jan-Feb 2011 Impressions (000)* AT&T Experian Intuit Scottrade Verizon 12,340,519 11,184,414 8,165,756 7,449,599 6,010,141 Jan-Feb 2011 Impressions Rank Total Estimated Ad Spend (MM)* % Online Spend $327 10% $46 73% $120 16% $33 85% $205 8% Traditional media advertisers recognize the importance of a strong online position; likewise primarily online advertisers see the value in adding offline advertising to their marketing mix AT&T is top spender for online and offline advertising so far in * Source: comscore Ad Metrix
7 Strategy vs Tactics 7
8 Strategy or Tactic? Strategy Take advantage of an opponent s inferior conditioning Don t go for winners immediately; run the opponent side to side and hit angles Tactic Use drop shots and short balls to draw the opponent to the net Use controlled aggression to remain on the offense Don t fall far behind the baseline to retrieve; take balls on the rise Flatten out the backhand Neutralize an opponent s biggest strengths 8 Hit heavy spin on the forehand deep to an opponent s backhand Block the return off a fast serve with slice backhands
9 Strategy or Tactic? Strategy Tactic Ideas about how you can achieve a goal Actions to take to execute a strategy 9
10 Planning strategies should lead to planning tactics Consider that your agency has been hired to promote a new credit card for Capital One that targets small business owners. Your goal is to understand the online marketing activity of the primary competitor, American Express Plum, and consider options for Capital One to challenge it. Characterize the market addressed by Plum Find low-hanging fruit for advertising to the SBO market Define Plum s top publishers Define top websites visited by business owners Determine where Plum isn t advertising 10
11 Data-driven Media Planning 11
12 3 rd party data helps answer questions to execute a strategy How difficult will it be for Capital One to capture part of the market? Only 34% of business owners personally own a small business credit card* Only 16% of business owners have a Capital One card* What s been AMEX Plum s advertising activity? Publisher Total Internet AOL, Inc. Yahoo! Sites Reuters Sites Microsoft Sites Federated Media Publishing Last 6 months Impressions (000)** 261,642 68,345 42,185 12,475 11,964 9,840 Cyclical pattern to AMEX advertising; currently waning 12 *Source: comscore Plan Metrix ** Source: comscore Ad Metrix
13 Data offers insight to justify media planning decisions Top 5 properties visited by business owners (Feb 2011)* Publisher Audience (000) Composition Index Target Lift Index Yahoo! Sites 5, Microsoft Sites 4, Google Sites 4, Facebook.com 4, AOL, Inc. 2, All top 5 sites have high reach and high comp index, but only Microsoft Sites have a high target lift index (more page views) Windows Live (under Microsoft Sites) could be a great place to promote Capital One Reaches 43% of business owners* Target lift index of 206* Not an AMEX Plum stronghold (only 6.5M impressions in last 6 months)** 13 *Source: comscore Plan Metrix ** Source: comscore Ad Metrix
14 Analyzing Media Planning (Telecom Industry) 14
15 4Q10 Top Telecoms Snapshot 21B Impressions 12B Impressions 8B Impressions 2B Impressions $422M Total Ad Spend $337M Total Ad Spend $148M Total Ad Spend $124M Total Ad Spend 30% increase in display ad spend from 4Q09 20% reduction in offline spend from 4Q09 #1 telecom for % allocation to display ad spend Only telecom to reduce online spend from 4Q09 15
16 AT&T using a different strategy than the other top telecoms Broad Reach Strategy Concentrated Strategy More publishers Reduce publishers More exposed UVs, % reach, and GRPs Higher overall spend (including display) Advertise more on specific sites visited by target audience Must react more to others that also concentrate on target Higher incremental reach cost Lower incremental reach cost 16
17 AT&T pays incrementally more than other telecoms to reach a lot of people for different products Feb 2011 Estimated Display Ad Spend (000)* Estimated Offline Spend (000)* Advertising Exposed UVs (000)* % Reach* GRPs* AT&T Inc. $16,556 $133, , ,054 AT&T Wireless $8, , ,075 AT&T U-verse $4,354 68, #1 AT&T creative in Feb M impressions Variety of publishers (AOL, BBC, ebay, Yahoo) Advertiser Estimated Display Ad Spend (000)* Advertising Exposed UVs (000)* Cost per Exposed UV AT&T $16, ,465 $.11 Verizon $8, ,641 $.06 Sprint Nextel $5, ,784 $.05 Deutsche Telekom $2,081 88,398 $ *Source: comscore Ad Metrix
18 Other top telecoms seem interested in concentration of advertising Overall trend is for a lower publisher count Trend is more of the top 80% of spend is contained in the top 80% of impressions for top 4 telecoms, except for AT&T Top 80% Publisher Spend:Impression Concentration Ratio* Advertiser 4Q09 4Q10 1Q11 (Jan-Feb) AT&T Verizon Sprint Nextel Deutsche Telekom * Concentration ratio = # of publishers for top 80% spend # of publishers for top 80% impressions
19 Telecoms re-allocating offline advertising Advertiser Change in TV Share of Offline Spend (4Q10 to 1Q11) Change in Radio Share of Offline Spend (4Q10 to 1Q11) Change in Magazine Share of Offline Spend (4Q10 to 1Q11) Change in Newspaper Share of Offline Spend (4Q10 to 1Q11) AT&T +1% -3% +3% -1% Verizon +13% -2% -8% -3% Sprint Nextel +8% +1% -6% -3% Deutsche Telekom +7% 0% -3% -4% A competitive shift like Verizon selling the iphone stimulates a media response from competitors such as more television ads 19
20 Homepage takeovers complement reach and concentration strategies MSN Takeovers on 2/3 and 2/28 6 total takeovers (ESPN, Weather.com, CNN, NFL) 50% of T-Mobile Feb impressions delivered on MSN done during takeovers** MSN averaged 24M visitors daily in Feb 2011* Similar total takeover impressions as T- Mobile in Feb 2011** 5 smaller takeovers (only 7% of takeover impressions) Most visited site (CNN) has 1/3 daily visitors as MSN* 20 *Source: comscore Media Metrix ** Source: comscore Ad Metrix
21 Homepage Invasion (Takeovers) 21
22 Lots of Takeover Activity Homepage takeovers command premium pricing but can be worth it to capture the full reach of a site A recent article fromthe Wall Street Journal reported that taking over the homepage costs a minimum of $750K - $1M for MySpace****, a site with about 2.5M unique visitors a day** Macquarie reported recently that in the 1 st half of 4Q10, takeovers accounted for 26% of the hompage ads on AOL, MSN, and Yahoo!*** Over 1B impressions were delivered in Feb 2011 via takeovers for hundreds of advertisers* Windows 7 took over WashingtonPost.com on 3/9/11 to promote ASUS Eee Slate 22 *Source: comscore Ad Metrix ** Source: comscore Media Metrix *** Source: To%20Drive%20Premium%20Prices/ **** Source:
23 They happen everyday take Wednesday 3/30/11 T-Mobile - TheDailyShow.com (234,000 daily UVs*) 23 *Source: comscore Media Metrix
24 They happen everyday take Wednesday 3/30/11 NY Times - Salon.com (725,000 daily UVs*) 24 *Source: comscore Media Metrix
25 They happen everyday take Wednesday 3/30/11 Jameson - TheOnion.com (250,000 daily UVs*) 25 *Source: comscore Media Metrix
26 They happen everyday take Wednesday 3/30/11 Sony - YouTube.com (7,990,000 daily UVs*) 26 *Source: comscore Media Metrix
27 Takeovers provide a huge boost for events and product launches 17 movies that opened in February used takeovers during release week to garner audience attention Motorola used 3 takeovers to launch the Atrix 4G in February ProFlowers was the #1 takeover advertiser in February delivering over 300M impressions* the week leading up to Valentine s Day 27 *Source: comscore Ad Metrix
28 Top publishers for homepage takeovers (Feb 2011) Publisher Takeover Impressions (000)* Takeovers* Advertisers* Advertising Exposed UVs (000)* Yahoo! 555, ,332 MSN 276, ,930 AOL, Inc. 245, ,947 YOUTUBE.COM 131, ,467 ESPN 41, ,877 WEATHER.COM 10, ,012 PEOPLE.COM 10, ,691 Yahoo! U.S. Sports 8, ,345 NBA.COM 8, ,065 NYTIMES.COM 7, , * Source: comscore Ad Metrix
29 Top advertisers using homepage takeovers (Feb 2011) Advertiser Takeover Impressions (000)* Takeovers* Publishers* % of Total Impressions ProFlowers 309, % Chrysler 297, % Ally Bank 138, % TurboTax 133, % GEICO General 46, % Subway 37, % Cars.com 34, % Allstate Insurance 24, % Classes USA, Inc. 23, % Orchard Bank 23, % 29 * Source: comscore Ad Metrix
30 Ready to take your comscore skills to the next level? Creating Smarter Media Plans with comscore Tools Dates: Courses are currently scheduled for Q Locations: New York City, Chicago, and London Join comscore expert trainers for an intensive 1-day workshop that weaves case studies, advanced approaches, time-saving tips and handson exercises for increased speed and quality for using comscore syndicated products in your online Media Planning process Featured Products: Media Metrix Plan Metrix Ad Metrix Segment Metrix Video Metrix comscore Marketer Audience Duplication Cross Visiting Media Builder Media Planner Reach Frequency comscore Dictionary
31 For more information or questions about this presentation please contact: James Muldrow
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