changing media landscape - arend hendriks, microsoft

Changing Media landscape

Arend HendriksCountry Manager Central & Eastern EuropeMicrosoft Digital Advertising Solutionsadvertising.microsoft.com

What we will speak about

•Observing some trends in Media & Consumers

• Ideas how to deal with it

• Executing that: being creative

Print

Radio

Media 90 years ago

Media 60 years ago

Print

TV

Radio

Print

Broadcast and Cable TV

Radio

Media 30 years ago

Media 10 years ago

Print

Broadcast and Cable TV

Radio

Digital: banners and text

Media yesterday

Broadcast and Cable TV

Print

RadioDisplay

Video Advertising

Text LinksMicro-sites

Rich MediaIn-Game Ads

Social Networking

IPTVMobile Ads

Ad-funded apps

Media tomorrow

Broadcast and IPTV

Print and Reusable Paper

Broadcast and Digital RadioDisplay

Video Advertising

Text LinksMicro-sites

Rich MediaIn-Game Ads

Social Networking

IPTVMobile Ads

Ad-funded appsUser Generated

Video Advertising

Pre-RollMicro-sites

Rich MediaInteractive Video

Digital Product Placement

5 second spotMobile Video Ads

Ad-funded OSPortable Media Ads

Page 10

Online is used by the majority not the minority

Source *EIAA Mediascope 2007 (UK, FR, DE, IT, ES, BE, NL, ES, SE, NO, DK)

57% of all Europeans regularly use the

Internet

11.7 hrs per week are spent online

81% of European connections

are broadband

Page 11

TV

Newspapers

Radio

Online

European media usage by time of day – 7 day average

Consumers are online all day

Online is becoming a central support tool into peoples lives

Source:EIAA Mediascope 2006 (UK, FR, DE, BE, NL, ES, SE, NO, DK)

Online audience time is steadily increasing

•Internet usages is the only growing media

Source *EIAA Mediascope 2007 (UK, FR, DE, IT, ES, BE, NL, ES, SE, NO, DK)

Share of Media versus Share of Ad Spending

13

TV31%

Radio28%

Internet23%

Newspapers11%

Magazines8%

TV33.0%

Newspapers34%

Radio6%

Magazines18.0%

Internet8.0%

Share of Total Media Time Share of Total Ad Spending

Source *EIAA Mediascope 2007 (UK, FR, DE, IT, ES, BE, NL, ES, SE, NO, DK) . Zenith Optimedia Western Europe Ad Expenditure Forecast Oct 07

Online represents 23% of all time spent on major ad-supported media, but only 8% of total ad spend

What we will speak about

•Observing some trends in Media & Consumers

• Ideas how to deal with it

• Executing that: being creative

it used to be pretty awkward…

“Time is being created that didn’t exist

before.”

~farfar, Stockholm, Sweden

Consumer in controldecides the moment, time and place

PVR - the next VCR (with a catch)

In recorded programming, what percentage of ads do you actually watch?

Source: Forrester – US Data Source: Forrester – US Data

Less than 10%52%

Less than 10%52%

None30%None30%

10% to 25%11%

10% to 25%11%

26% to 50%4%

26% to 50%4% More than 50%

3%More than 50%

3%

The consumer wants relevance and on-demand

•Disinterested, disengaged

•Leaning forward, Captured

Page 21 |

Teens spend almost 15 hours online-3 hours more

- up 17% vs 2005

It has never been easier to be

part of the media landscape

The consumer is empowered

“The tremendous pace of change is not being grasped… it’s a "cop out" to talk about children and grandchildren having different media habits. It's happening now” Sir Martin Sorrell, CEO WPP

The Captains of Industry get it

“For the first time the consumer is boss, which is

fascinating, scary and terrifying because everything we

used to know will no longer work” Kevin Roberts: Saatchi & Saatchi

“We must accept the fact that there is no mass in mass media anymore, and leverage more targeted approaches“ Jim Stengel, GMO P&G

What we will speak about

•Observing some trends in Media & Consumers

• Ideas how to deal with it

• Executing that: being creative

Bring the love back

http://www.youtube.com/watch?v=cpGAAFb6bLM

What we will speak about

•Observing some trends in Media & Consumers

• Ideas how to deal with it

• Executing that: being creative

Cannes Lions Festival examples

http://www.youtube.com/watch?v=iYhCn0jf46U

http://www.youtube.com/watch?v=nhStKDFGv_s

http://www.youtube.com/watch?v=WkIlyO5PXHE

arendh@microsoft.com