a selling edge
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A Selling Edge. February 12, 2008. Agenda. State of Television Changing the Mindset Where the Opportunity Lies. Is Television Dying?. State of Television- English Canada. Source: Fall 2007, Ad 18-49 AMA, Cdn stations. Reflecting a Changing Media Landscape. - PowerPoint PPT PresentationTRANSCRIPT
A Selling Edge
February 12, 2008
2
Agenda
State of Television
Changing the Mindset
Where the Opportunity Lies
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Is Television Dying?
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State of Television- English Canada
Source: Fall 2007, Ad 18-49 AMA, Cdn stations
English Canada M-Su 6-11 p.m. Primetime
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Weeks
Ad
ult
s 18
-49
(000
)
Primetime M-Su 6p-11p Total TV 2006 Primetime M-Su 6p-11p Total TV 2007 Primetime M-Su 6p-11p Cdn Conv 2006
Primetime M-Su 6p-11p Cdn Conv 2007 Primetime M-Su 6p-11p Cdn Spec/Dig 2006 Primetime M-Su 6p-11p Cdn Spec/Dig 2007
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Reflecting a Changing Media Landscape
Can we change how we think about the medium, and how advertisers use it?
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Think of What Media Does vs. What it Is
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Think of What Media Does vs. What it Is
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Success Requires a Shift in Focus
Integration across platforms - one voice to the consumer
New and specialized skill sets are required to navigate today’ expanding media universe
Blurring lines between offline and online; winners will organize for a video world
Winning strategies will be grounded in deeper consumer insight and will delve more deeply into creative and content
Content is not limited to TV but available on multiple platforms
Counting heads is no longer an option, measuring effectiveness is critical
Accountability and measurability are at the heart of continuous understanding and learning
Key will be identifying what are new contact points and who are the new partners
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Redefining TV to Video
The “new”
OOH (Dundas Square, 1 Richmond Street)
In-store – i.e. Wal-Mart, Couche-Tard
Video on demand (VOD)
Broadband
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Portable Television/Video Players
Archos 605 Video
Player
Apple 80 GB
iPod Touch
Archos AV700 Mobile Digital Video Recorder
iRiver Clix Media Centre
Apple iPhone
Creative Zen VisionDigital Media Player
Redefining TV to Video
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Changing Competition
Consumers are controlling their media, particularly video to an increasing degree
We need to ensure our clients are where the consumer is?
Your competition is not limited to your fellow broadcasters; in a planners mind:
OOH, Internet, New Media are all competing for traditional TV investment
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Are You Ready?
Canadian Broadcasters have competed in a closed environment with stable growth
Today new technology has introduced more media choice, with opportunity for media owners to create new revenue streams
Vertical integration of content over multiple platforms is where the industry is going but are advertisers ready to embrace them?
Talent cost for advertisers is presently limiting the usage of the broadband and mobile opportunities- not glamorous but an issue which needs solving to grow
When the talent issues are resolved pricing by both content distributors and media owners must reflect the “pioneering” relationship involvement should generate
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Are You Ready?
Broadcasters who have focused solely on the threat of TV as your sole competitors may have underestimated the evolution of other media options
The defacto approach that no other medium delivers the reach of television is short sighted, there is always a caveat- at what cost?
There is no tolerance for inflation in a soft or recessionary marketplace
Conventional television has continued to see inflationary increases which do not reflect the weakened performance of their programmes- Specialty has been forced to offset
New research in Radio and, the prevalence of online usage are all going to challenge the reach of TV if not today, certainly in the near future
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Are You Ready?
What impact will the unbundling of the Specialty Channels have, and will they continue to be a viable mitigating factor balancing the inflation in conventional?
Will the inflation of conventional be minimized due to subscription fees paid by the viewer, or is it merely a method of sustaining generous profit margins……
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Clients are questioning the traditional approaches:
There is so much fragmentation and clutter, should I be first in pod, why can’t you guarantee it?
Is anyone watching commercials with PVRs?
Why can’t I buy commercial minute audiences?
Do I need conventional?
Do I need Top Twenty
Do I need Top Twenty at this cost?
Why is X station on my buy?
I don’t want to be associated with reality programming
Why should I pay the same for repeat programmes?
Is this branded opportunity worth it, will it deliver more than a GRP buy in sales?
Why won’t the broadcaster value my assets?
Clients are asking….?
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What Clients Value in TV Today
A good performance in the SMART Report
Association with properties that create buzz
Added value
Specialty Channels- personal favorites and those that align with brands ie. HGTV and Lowes
Integration, when it goes smoothly
Positive sales results?
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Getting Ahead of the Curve
Broadcasters need to ensure the “value” of television is supported
Innovative products
Supported with ROI research
Recognize the value of engagement, and support it with research
Listen to the viewing consumer
The consumer may be far more tolerant of change and innovation than we suspect- take risks
Timing is everything
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Integration in Content
What is a smooth integration?
A natural alignment between the brand and the programme- the same DNA
All parties are on board with the idea and are flexible- where multi media is involved each constituent must understand the role of their medium
Let the integration evolve, it is unlikely to directly reflect the original pitch
Listen- The various team leads must be able to improvise and work with change -NO is not the first answer the agency/client should hear
No’s should be related back to the agreed upon objective not arbitrary rules
Measure the results against specific media and business objectives and evolve them as you learn
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Integration in Content
What is a smooth integration?
Value- define and rationalize the value of the property at the outset so it is clear to agency and client
Understand we are typically selling a product; show us why the opportunity has value and let us all evaluate the success of the media against this value
Put in place 3rd party research which will evaluate measurable success
Expect full activation from the client and let them know from the outset
Packaging, contesting and in store will aid in the success of the integration- build in the time and resources to develop this out
Seek out a messaging plan from the client/agency with clear communication goals- it will help you understand the clients goals
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Integration in Content
Where has integration failed ?
Cheesy endorsements that make the audience cringe- don’t force fit
Too much scripting
Too many messages
Too many chiefs
Unclear objectives precluding evaluation of success
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A recent success
MTV FRESHMTV FRESH : : The program is designed to engage consumers with relevant content while serving up Value Picks as the content provider.
Each week, MTV creates a 4-minute program featuring the most talked about moments from MTV Live, highlights from original MTV shows, exclusive aftershow moments, new and hot music videos, live music performances, exclusive interviews PLUS: the ‘PICK of the Week’ brought to you by McDonald’s Value Picks Menu
The show is packaged for our viewers who are ‘on-the-go’ and available on a number of new media platforms:1) mtv.ca 2) mobile phones3) podcast download (modified version)
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Have You Got the Right People?
Sales organizations for years have been seeded largely with media agency buyers
Buyers today have different backgrounds in both education and breath of experience vs 10-15 years ago
Integration opportunities need to be managed by those who are strategically sound, an excellent listener and a problem solver- not the priority list for your average sales representative
Consider seeding integration teams with marketers…..A weak idea in a pretty deck is still a weak idea which will not past muster at most agencies and clients
A rep who is focused largely on protecting the media owners interests as opposed to brokering a successful execution will ultimately lose
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The Risk
Status quo approach means the continued vulnerability of traditional TV investment, particularly conventional
Integration in Canada; due to the predominance of U.S. programming, cannot be the only solution to building a stronger video business
Selling to the right people at the right time will be even more important as the business evolves
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Monitoring Consumer Attitudes & BehaviourCanadian Agencies have changed
Successful Media Agencies have stepped up their game
Sophisticated Planning Tools
Media Specialists
Leveraging Global Insights and Research
Traditional TV
Traditional TV is no longer strictly used in a traditional manner
Buy Type GRP BuyStrategic/
Integrated BuyEnvironment
Buy
Timing 3 Buy Seasons Annually
Planning(Feb/July)
Planning(Feb/July)
Decision Maker Majors – Super/Sr. Buyer
Sr. Planner – input from Buy Manager
Sr. Planner – input from Buy Manager
Client Involvement 0 Varies – brief to ultimate approval
Strategic only
Client Exposure Pre-Buy Pitched short list or final reco only
by agency
Approval at planning stage
only
% of investment 0-25% 0-25%
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Relationship Building
With the development of email; sellers have feared the loss of the relationship with the buyer, and rightly so
Today sales representatives spend less and less time in their agencies
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Relationship Building
Frequency of visits is not the most telling statistic when it comes to sales
When reps are with their agencies weekly they are more than likely visiting and not selling
They aren’t selling to everyone, largely the buyers they enjoy/have fun with
The planner is the forgotten decision maker
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Relationship Building
When management was challenged last October to get their people in more often and share the love, only one sales rep made any significant change in their behaviour
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Making the Traditional Buying Decision
What the buyer knows:
Product
Tone/Theme of creative
Target Group- broad and bullseye
Share of ratings allocated to conventional
PMB insights
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Making the Traditional Buying Decision
What the buyer values from a sales rep:
Accuracy- Confirm understanding of the request and deliver what is asked for
Speed- We are looking for responses within 24 hours- don’t be the last in, consistently
Initiative-Did you understand the request and provide more than the basics ie. Suggestion of a type of show, or an OTO opportunity
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Making the Traditional Buying Decision
What the buyer values from a sales rep:
Sell- Have you done more than send an email with the submission? Don’t become email wallpaper
Follow Up- check in with the buyer, do they have what they need? Is there anything new to add?
Consistency- from rep to rep, region to region and from sales rep to sales administration
Give the buyer a Win- We merchandise what we negotiate to our clients; added value or bonus is brought to our clients attention- you can share that halo
The Integration Decision
Understand the agency structure- we are not all alike
Our clients have planning cycles which do not align with broadcast years; get to know them and work around us- the clients will not change for you
At OMD the decision to participate in an integrated opportunity lays with the planners
The smart representatives will build inclusive relationships with both the planning and buying team- let buying facilitate when it is a rep initiative
For generic opportunities present to the agency and ask for representation from both planning and buying
Share opportunities with everyone and give equal opportunity, we may surprise you
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Timing is Everything
Be Patient
It often requires more than one year to “sell-in” an opportunity to a client for a number of reasons:
Timing
Budget
Competition
Resources
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The Challenge- Again!
The truth is the media industry has done shockingly little to help answer client questions and build confidence in the medium
What research has been done is often viewed as proprietary
We will use your research to help sell our clients innovation
The industry needs to allay fears with solid research and case studies- Proprietary you say?
Make a deal with a client that allows YOU to share the results, you will reap the benefit 10 fold by using the research as a basis for future sales
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Follow at Your Peril!
Prepare yourself and your organization for a video world
Understand your competition outside of broadcast and how you can maintain/build share
Answer our questions, build confidence in the medium through research and innovation
The integration will only be as good as the people working on it
Mitigate risk for agencies and clients to be innovative
Understand the evolution of agency structure and needs
Remember selling in a soft market is not only about friends