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When Media Worlds Collide Mike Yardley Managing Partner 05/24/06. Footprint. Kansas City (HQ), U.S. New York, U.S. Seattle, U.S. Atlanta, U.S. Los Angeles, U.S. Chicago, U.S. London, United Kingdom Bogotá, Colombia Barcelona, Spain. VML Partner Companies. Clients. Digital Evolution.
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When Media Worlds CollideMike YardleyManaging Partner05/24/06
Footprint Kansas City (HQ), U.S. New York, U.S. Seattle, U.S. Atlanta, U.S. Los Angeles, U.S. Chicago, U.S. London, United Kingdom Bogotá, Colombia Barcelona, Spain VML Partner Companies
What is Digital? • A medium. A channel. A marketing and efficiency tool enabled by technology. • Digital is more than web properties, online marketing, technology platforms, email, relationship marketing, and advertising, it's become part of everything. It’s a way of life.
THE FIRST AGE THE SECOND AGE THE THIRD AGE Communication Content Co-Creation Network Infrastructure TCP/IP Email FTP Hypertext Protocol Self-Organizing Repositories Real Time Broadband Adoption P2P/Blogs/Wiki Reduced Reliance on MSM Proletarian Punditry “Death” of traditional media Transition to mainstream 1970 - 1995 1996 - 2002 2003 - Today OVERVIEW Digital Evolution The Digital Age Has Transformed Information Flow and Facilitated Open Social Networks
"The time has come for us to agree that mass-media marketing is over.” Larry Light, CMO McDonald's • Almost half of marketers are decreasing spending in traditional advertising channels (network TV, magazines, direct mail, and newspapers) to fund an increase in online ad spending in 2005. • Online ad spending is projected to grow at rate of nearly 25% in 2005 and will represent 8% of total advertising spending by 2010, rivaling ad spending on cable/satellite TV and radio.
“Traditional” advertising is becoming less effective. • More than half of consumers are consuming two media at a time* • More than 25 percent of U.S. households have a DVR today and it is projected by year 2010 over 40 percent will have DVRs** • More than half of DVR owners skip most or all TV commercials*** * Retail Advertising and Marketing Association (RAMA) and BIG research ** Forrester Research: The State of Consumers and Technology: Benchmark 2005 *** 11/2005 MAGNA Global USA and Forrester Research: Is TV Still a Viable Medium
New technologies are impacting the way marketers reach consumers as they allow access to content anytime, anywhere, through multiple channels. • Marketers moving from mass marketing to individualized marketing as consumers move to more individualized viewing • On-demand viewing • Viewer-generated content • Video search technology • Marketers pursuing multiple new approaches as consumers are consuming media in more and different ways and are fragmented in their behaviors • Marketers are embracing platform-agnostic content, fluid mobility of media experiences - - delivering brand experience no matter what medium the consumer is using 02/2006 IBM Institute Study
TV networks are moving to the internet. NBC Universal purchased iVillage for $600 million - Reuters 03/08 AOL to offer free WB produced shows & pay-per-download shows from established programmers - Reuters 03/06 Disney CEO announced a new service, called MyABC, to offer video downloads of ABC shows online. - Variety 02/27
Application Dissection • Media Holder • Video mail • Comcast DigiTV • Etc. • Podcasting • Partners • Sponsors • Etc. • Dynamic Feds • Charts • Calculator • Etc. • Flexible Feeds • Partners • Sponsors • Etc. • Contextual Posts • Partners • Sponsors • Etc.