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Marketing & Media Ecosystem 2010 doc

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MME 2010 Marketing & Media Ecosystem 2010 CMO Roundtable Discussion 2010 MME z z Marketing efforts increasingly in Marketing efforts increasingly in digital channels digital channels z z New media data widely leveraged New media data widely leveraged z z Quantitative and analytical skills Quantitative and analytical skills emphasized emphasized z z Predictive tools to capture insights Predictive tools to capture insights and allocate the mix and allocate the mix z z Experimental innovation fund in Experimental innovation fund in place place z z Low organizational barriers and Low organizational barriers and progressive culture progressive culture z z More likely to be considered More likely to be considered “ “ digitally savvy digitally savvy ” ” The Leaders Characteristics of a Leader 18% 82% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Leaders Non-Leaders % of Respondents Only 18% are Leaders 2010 MME Common Themes Marketing as Conversation Insight into Foresight Media: The New “Creative” Marketing + Math The Network Effect 2010 MME Marketing as Conversation Marketers shift to focus on media that offer a more direct & deeper connection Digital Mobile PR Events Direct Mail TV Print Out of Home Radio 50% 100% Two-way One-way Increase SpendingDecrease Spending 100% 50% 2010 MME Marketing As Conversation: Leading Practices 49% 49% 49% 31% 21% 25% 0% 10% 20% 30% 40% 50% 60% 70% Word of Mouth Blogs Social Networking Leaders are using two-way new media to have conversations with consumers as part of marketing % of Respondents Non-LeadersLeaders 64% 53% 0% 10% 20% 30% 40% 50% 60% 70% Leaders Non-Leaders Marketers are using consumers to get the word out – a majority believe advocacy in more important than awareness 2010 MME 82% 80% 66% 60% 59% 49% 43% 39% 38% 32% 71% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Consumer Insights Behavioral Targeting Brand Strategy Customer Marketing Partnerships PR In-house digital production Field Marketing Entertainment Marketing Event Marketing Sponsorships Consumer Insights and Behavioral Targeting capability becoming more important to marketers % of Respondents Insight into Foresight 2010 MME Insight into Foresight: Leading practices % of Respondents Laggards– Have todayLeaders – Have today Leaders – Have by 2010 Laggards – Have by 2010 Leaders are investing in cutting edge capabilities that enable them to gain insight and react to customers 52 33 30 27 18 36 39 42 42 15 42 21 21 6 9 21 27 27 36 9 0 10 20 30 40 50 60 70 80 90 100 Open channels for communicating with consumers Increased speed of insight generation High flexibility for reacting to consumer needs Dedicated group of ethnographers Formalized processes for integrating CI into products 2010 MME Media: The New “Creative” 52% 52% 52% 26% Media Company Media Planning/ Buying Agency Communications Planning Agency Traditional Full Service Agency Creative takes a back seat; 2x as many say media partners are more important than traditional agencies 2010 MME 91% 88% 49% 90% 59% 49% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Information Community Entertainment Media: The New “Creative”: Leading practices Non-LeadersLeaders % of Respondents To achieve relevance, all seek to understand how consumers use online media for info and entertainment, but Leaders also understand role of community 39% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Leaders Non-Leaders Leaders are hiring communications planners to help make smarter media mix decisions 2010 MME 0% 10% 20% 30% 40% 50% 60% 70% 80% D ire c t mail E v e nts P rint T elev i si o n P ublic r e lati o ns R adi o O ut of Hom e O nl i ne advert i sing P rodu c t- s pecif i c we b s i t e S ocial Netw o rking M o b i l e W or d of Mou t h ( on line) B logs / vid e o blo g s Y o u T u be / v i d eo posts V id e o on dem a n d / i TV Leaders Laggards Marketing + Math % of Respondents Leaders are 2x – 5x as likely to have the metrics and capabilities to judge the effects of new media Digital Media [...]... with both capabilities 20% Media landscape changing: Relationships, roles and responsibilities will be different Leaders believe… Keep media and creative agencies separate 28% Keep Separate nd le Direct partnerships with media more important than going through an agency 58% 50% of media processes will be outsourced by 2010 55% Media sourcing will look like equities in 5 yrs Media planning/ buying capabilities... 0% Leaders Non-Leaders 0% 20% 40% 60% 80% % of Respondents MME 2010 Leading Thoughts Across Ecosystem “If you are not taking 15% of your marketing budget and asking your marketing partners for tests, you will be in trouble” – CEO, Agency “Digital marketing is more expensive and can be challenging to scale, but we leverage off shoring, & creative out sourcing… let creative versioning become a commodity”... for human capital – it does not replace it” – President of Advertising, Interactive Media Co “In the future, marketing organizations will look like media companies that sell things” – Founder, Interactive Media Co “Generations have shortened from a ten year time frame to a three year time frame” –SVP Marketing, Korea MME 2010 ... Online efforts are not captured in the marketing mix model 30% 0% 20% 40% 22% Adding an analytics department 60% % of Respondents 80% Leaders 12% Non-Leaders 5% 0% 10% 20% 30% % of Respondents 40% MME 2010 50% The Network Effect Agencies in chaos: Almost 60% agree creative, strategic, and media capabilities should be rebundled – but disagree how Doesn’t Matter 15% Media agencies should build up full service... look like equities in 5 yrs Media planning/ buying capabilities should be integrated into full service 22% 50% Marketer/ media relationships look like marketer/ retail 43% % Respondents MME 2010 Network Effect: Leading practices Leading companies believe that direct partnerships with media companies are important … … and are investing in internal capabilities to do so 70% 60% 47% 50% % of Respondents.. .Marketing + Math: Leading practices All companies are facing challenges in measuring the effectiveness of new media Insufficient ability measure effectiveness Leaders are building tools and teams to support analytics efforts 45% Use predictive modeling to . MME 2010 Marketing & Media Ecosystem 2010 CMO Roundtable Discussion 2010 MME z z Marketing efforts increasingly in Marketing efforts. Leaders 2010 MME Common Themes Marketing as Conversation Insight into Foresight Media: The New “Creative” Marketing + Math The Network Effect 2010 MME Marketing

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