digital reality

Search

The Digital Reality

MDAS Singapore

Chris Schaumann, Country Sales Manager

| © Microsoft Corporation 2007

Future Shape of Advertising

Slide 5 | © Microsoft Corporation 2007

The Consumer is in Control


The Consumer is in (Remote) Control


The new TV Reality

Before DVRs, (TV Viewing)

• 70% of television viewing happens during primetime hours

• Virtually all television watched "live"

• Life fits into the network's schedule

After DVRs

• Up to 60% of viewing is time shifted

• Reality, news and sports are the only genres that retain much live audience

• 70% of commercials are skipped

• Two-thirds of television occurs outside of primetime hours


DVR – the next VCR (with a catch)

Source: Forrester’s consumer technographics 2004 DVR online study

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


Digital Generation

Source: Nielsen//NetRatings consumer Survey 06/06


No more Mass Media?


Source: Europe: Screen Digest 2005, Japan: Wikipedia May 2006, US: US Federal Comms Commission, 2004

Japan US France GermanyUK

Number of TV Channels

1686

416246

93

7109

TV Channel ProliferationThe End of Mass Media

The End of Mass Media

Source: NAB (1965 – 1986); Nielsen (2000)

34%

24%

13%9%


Multi-tasking

Source: MindShare, November 2005


Always connected and informed

Access home & work Connected

Self expression Informed


The Internet beats the TV in the Battle for Attention


Print Global Trends

1994 1995 1996 1997 1998 1999 2000 2001 2002

100

105

110

115

120

125

130

135

140

1993


1995 U

SD

bil

lio

ns c

on

sta

nt

pri

ces

Print Humor

26Slide 26 | © Microsoft Corporation 2007

The Rise of Windows Live Spaces

2 m40 m

120 m

Source: Microsoft Internal Data (audited by PWC)


The Internet has reached Critical Mass


Source: www.internetworldstats.com, February 2007


Exploding Online Users in APAC

Exploding Online Users in APAC



Exploding Online Penetration in Asia



Who’s Online?

Source: PAX Q3,05-Q2,06 (10 markets ex Tokyo; among top Management Sample)


Average Hours of Media Exposure per Day

Source: Synovate Young Asians Nov 2005


What is the Global Youth spending more Time on?


But Consumers are still way ahead….


The World is changing (fast!)

Growth rate: years to reach a quarter of the US population


The World is changing (fast!)



Digital Dominance

Print

Digital TV

Analogue radio

Cinema

OutdoorMobile

Digital radio

Games

Internet

Analogue TV

Source: ISOBAR


Internet is the most helpful Medium for Product/Service Information

Source: Synovate Young Asians Nov 2006


Internet for B-2-B?


Internet is the most helpful Medium for Consumer Electronics

Source: Consumer Electronics Association, Oct 2006


/default.asp

Consumers research & buy Online

Source: EIAA Mediascope 2005

Source: Media expenditures by medium from TNS Media Intelligence & Coen’s

Share of Advertising Expenditure – U.S. 2005


Share of Advertising Expenditure – U.S. 2005


ADVERTISING EXPENDITURES MEDIUM AS % OF TOTALCOEN’S U.S. TOTALS*

MEDIA 2005 2004 % CHG 2005 2004 2005 2004 % CHG

Direct mail NA NA NA NA NA 55,218 52,191 5.8

Yellow Pages NA NA NA NA NA 14,229 14,002 1.6

Cable local spot NA NA NA NA NA 5,358 5,103 5

Network TV 26,706 26,218 1.9 9.9 9.9 16,128 16,713 -3.5

Local newspaper 25,537 25,164 1.5 9.4 9.5 39,870 38,985 2.3

Magazine 23,218 21,628 7.3 8.6 8.2 12,847 12,247 4.9

Spot TV 17,115 18,794 -8.9 6.3 7.1 24,300 25,877 -6.1

Cable TV network 16,453 14,818 11 6.1 5.6 18,296 16,424 11.4

Internet 8,323 7,343 13.3 3.1 2.8 7,764 6,853 13.3

Local radio 7,431 7,453 -0.3 2.7 2.8 15,357 15,205 1

Business publication 5,038 5,234 -3.7 1.9 2 4,170 4,072 2.4

Syndicated TV 4,222 3,931 7.4 1.6 1.5 3,865 3,674 5.2

Outdoor 3,529 3,213 9.8 1.3 1.2 6,232 5,770 8

National newspaper 3,467 3,303 4.9 1.3 1.3 7,465 7,629 -2.1

National spot radio 2,604 2,617 -0.5 1 1 3,469 3,540 -2

Sunday magazine 1,739 1,529 13.7 0.6 0.6 NA NA NA

FSI 1,442 1,392 3.6 0.5 0.5 NA NA NA

Network radio 1,010 1,028 -1.7 0.4 0.4 814 836 -2.6

Local magazine 451 360 25.2 0.2 0.1 NA NA NA

Total US 271,074 263,766 2.8 100 100 271,074 263,766 2.8

Source: Media expenditures by medium from TNS Media Intelligence & Coen’s

Regional Reach (vs. TV)

Source: Synovate Young Asians 2005, Hong Kong, Singapore, Korea & Taiwan


/

http://animal.discovery.com/

http://travel.discovery.com/

/phoenixtv/77413315176824832/index.shtml

Regional Reach (vs. Print)

Source: Synovate PAX 2005/06 (Q2 ’05-Q1 ’06)% Av. Issue Readership,


Reaching Consumers throughout their Media Day

7.00am

9.00am

11.00am

1.00pm

3.00pm

5.00pm

7.00pm

9.00pm

11.00pm

Morning Paper

Paper/Mags

Leisure Mags

JourneyTo Work

Out forLunch

Journey Home

Breakfast Show

Drive Time

Drive Time

Check News/Mail

Search

News, Sport,Finance

Search

Web Cast

Breakfast News

News, Ent,Sport


+ WiFi

Digital Convergence


The Captains of the Industry get it...

Digital is becoming the core marketing tool. ... it is, and we should have no doubt about this, a fundamental and irreversible evolution.

Publicis Groupe CEO Maurice Levy


Source: AdAge May 2007

http://adage.com/

The Captains of Industry get it...

I believe today’s marketing model is broken. We’re applying antiquated thinking to a new world of possibilities…

Jim Stengel, GMO: P&G


The Captains of the Industry get it…

Source: Forrester December 2004 (What’s Next For TV Advertising)


…and the Consumers?

- Internet tops TV as most popular pastime -Surfing the Internet is now more popular than watching television, according to new figures. On average, adults in Britain spend more time online at their computers - 41.5 days a year - than in front of the TV. Government figures from the Office of National Statistics show that we spend just 37.5 days a year watching television.

Source: Daily Mail, 8th March 2006


…and the Clients?

– Jim Stengel, CMO P&G –

“What we really need is a mind-set shift, a mind-set shift that will make us relevant to today‟s consumers, a mind-set shift from „telling and selling‟ to building relationships.”

Source: Times UK Online, October 21, 2005


…and the Clients?

– Heineken Halts All TV Advertising in UK –Heineken has pulled its television ad budget after 30 years of broadcast advertising campaigns. It will redirect its marketing dollars towards point-of-sale promotions and event sponsorship.

Rob Marijnen, managing director of Heineken UK, said that a number of factors had prompted it to put its money elsewhere... “The enormously cluttered environment in TV ads makes it difficult to make standout ads... It’s also very expensive and it’s questionable as to its effectiveness.”



…and the Clients?

-– McDonald’s doubles online spend after global restructure –-McDonald’s has restructured its global marketing team and doubled its online advertising budget as it turns to interactive media to forge a more meaningful relationship with consumers.Consumer-generated content and social networks such as Windows Live Spaces are believed to be important areas of focus for the company.Detailed research conducted through Microsoft demonstrated that online was 44 per cent more cost-efficient than other media when it came to driving purchase intent. TV’s share of the marketing pot has reduced from 85% to 70%.

Source: Industry News, January 2007


/home.html

…and the Clients?

-- NESTLE favors Digital by an additional 8% --

NESTLE dropped a digital bombshell this week. The Swiss food giant is reducing its TV advertising budget from 68 to 60 per cent of marketing expenditure globally in recognition of the importance of digital media.

"The advent of the digital age continues," announced Nestle Australia's Ian Alwill. "Nestle has legislated that we will spend more in the digital space."

Source: Fairfax, November 2006


…and the Clients?

Suzuki to 3x Online Ad Spend

In a move to become a bigger player on the auto landscape, American Suzuki Motor has more than tripled its online ad spend this year and already has made its Internet media buy for 2007, well ahead of the competition.Up to 85% of Internet ad buys are now made upfront.

Source: Brandweek 6/9/06


../index.html

…and the Clients?

-- HP spends 30% Online --

HP has shifted its online media spend from 10% to 30%. They have also merged content and media in various fresh and compelling ways.

Source: ANA Annual Conference October 20`06


…and the Clients?

Source: ANA Annual Conference October 20`06


…what about Microsoft?

Of the $500 million Microsoft allocated to the introduction of its Vista

operating system, 30% went online.



…and the Industry?

“78% of advertisers feel that over the last two years television advertising has lost effectiveness, and — as a direct result —marketers are exploring emerging technologies to help bolster their television advertising spend.”

Source: Survey from the Association of National Advertisers (ANA) and Forrester Research, 30th March 2006


…and the clients?

“The ANA predicts that 80% of advertisers will

spend more of their advertising budget on Web advertising

and 68% of advertisers will look to search engine marketing.”

Source: Survey from the Association of National Advertisers (ANA) and Forrester Research, 30th March 2006


Some things never change


Planning & Creativity


“Media execution &media buying

is becoming the new creative in advertising”

Source: The Economist Intelligence Unit, September 2006

The Future of Marketing - From Monologue to Dialogue


Source: The Economist Intelligence Unit, September 2006

“Every major advertiser today is re-evaluating their entire marketing investment”

Ed Erhardt, President of Marketing and Sales

The Future of Marketing - From Monologue to Dialogue


Bring the Love back!


Join the conversation at

www.bringtheloveback.com

http://www.bringtheloveback.com/

http://www.bringtheloveback.com/

Customer-2-CustomerGeneration ‘C’ (for Content)

• Research shows that 86% of consumers

no longer believe what brands say about

themselves

Slide 88 | © Microsoft Cooperation

2006

• Whereas 78% of consumers believe

what other consumers say about brands


Make your communication

genuine


Make your communication

relevant


Target the right

messageAt the right

timeTo the right

person


Break up the silos of

creative+

planning


Engage your audience with

interactivity

What does this mean for Microsoft -a new era


Software & Ad Market

2007 Online Ad Market = $34B6% of total Ad Market

2009 Online Ad Market = $52B

8% of total Ad Market

Sources: -Market Sizes: Microsoft & Universal McCann- Online Market Sizes: Oppenheimer & Co. Inc., June 2007 (sources include Universal McCann, Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers )


Steve Ballmer

“Going back about 20 years I used to tell our people Microsoft was about one thing: Windows, Windows, Windows… but not any more baby, it’s Advertisers, Advertisers, Advertisers”

107Slide 107 | © Microsoft Corporation 2007

Online for the Consumer in Control

Designed to work together

Anywhere access

Safety and security

PreviousSearches

Met on-line

Biz Network

PlayGroup

BookClub

TripPhotos

News

Met on-line

Last job pals

Localshops

Relevant Info

Com-puterFiles

OtherFamily

LocalSearch

FamilyFriends

Friends

FriendsFamily

Family

Friends

me

Move from links to answers

Access all areas

EntertainmentAnswer my Question

My social Network

Everything on Anything


Content providers (major to self select)Vo

lum

e o

f U

sers


Vision

• Windows Live, a new set of personal Internet services and software, is designed to bring together in one place all the

– Relationships

– Information

– Interests

• People care about most, with enhanced safety and security features across their PC, devices and the Web.

• MSN and Windows Live will be offered alongside each other as complementary services.


A comprehensive Advertising Solution for You

• Reach your their target audiences across multiple digital lifestyle touch points

• Your message in the right place at the right time

• As consumers communicate, research, inform, entertain and work

• Dynamically engage your brands with your audience

• Context and content for 76 million Asian users on MSN, Windows Live, Microsoft Office

• High-impact advertising products and platforms such as Window Live Messenger

• Achieve advertising results through world-class partnership services

• Access to advertising innovation, knowledge sharing, planning and service excellence

• Benefit from case studies, industry research, custom ad accountability and more


Advertising when the Audience is …

– Game Console

(over the Internet)

– IPTV

– Online Video

– Online Maps

– Instant Messaging

– Online Services

– Mobile Phone/PDA


While playing Games


While watching TV (over the Internet)


While watching Video (Online)

Branded Experiences:

1. Watching MSN in Concerts (Music/Videos Online)

2. Watching Live Earth



http://msninconcert.msn.com/music/archive/en-sg/archive.aspx


http://msninconcert.msn.com/




07/07/07 – Live Earth

07/07/07: The Media Event

From the producers of Live 8, a media event to focus global attention on climate crisis…

• 7 concerts…

at ecologically responsible & politically important venues

• 7 continents…

each with its own environmental concerns

• 150+ artists…

performing in support of a global call to action

• 60+ films…

& PSAs messaging critical environmental issues

• Live Earth’s “SOS” online community…

engaged by rich content & interactivity

• 2 million audience members…

inspired by the event experience

• 2 billion viewers…

mobilized to take action with corporate partners

• US: Giants Stadium Confirmed

• UK: Wembley Stadium – London Confirmed

• Brazil: Copacabana Beach, Rio de Janeiro

• South Africa: The Cradle of Human

Kind, Maropeng near Johannesburg

• Japan: Tokyo Dome, Tokyo

• China: (location TBD), Shanghai

• Australia: Aussie Stadium, Moore Park, Sydney

Global Concert Locations and VenuesArtist for All Venues to be confirmed

Live Earth Confirmed Artists Giant Stadium–New Jersey

• Kanye West

• AFI

• Kelly Clarkson

• Akon

• KT Tunstall

• Alicia Keys

• Ludacris

• Bon Jovi

• Sheryl Crow

• Melissa Etheridge

• Dave Matthews Band

• Rihanna

• Fall Out Boy

• Roger Waters

• Smashing Pumpkins

• John Mayer

• The Police

Live Earth Confirmed Artists Wembley Stadium–London

• Beastie Boy

• Black Eyed Peas

• Bloc Party

• Corinne Bailey Rae

• Damien Rice

• David Gray

• Duran Duran

• Foo Fighters

• Genesis

• James Blunt

• John Legend

• Keane

• Madonna

• Paolo Nutini

• Razorlight

• Red Hot Chili Peppers

• Snow Patrol

Global Media Distribution & Reach

• A global campaign fueled by 24-hour multimedia reaching 2 billion viewers

The Exclusive Online Distributor

“One of the things that Microsoft and MSN really believe in is that the Internet is going to change the world, and

that we can play a very big role in this.” Joanne Bradford-Corporate Vice President and CMO,

MSN Live Earth Press Announcement, Los Angeles, 2/15/2007

User Generated

Content

Guerrilla Marketing

PSAs

SaveOurSelves.org

U.S. Broadcast Global Broadcast Online Marketing & PR


http://liveearth.sg.msn.com

http://liveearth.sg.msn.com/




Watching Live Earth on television, as opposed to online via MSN, is an effect not unlike being a passenger in your grandmother's car:

"Go faster, turn here, oh hell, forget it, I'll drive…Each concert feed streamed via MSN without buffering or hiccups, meaning that each was as mouse-clickably close as the next...The pageantry that sprung from his devotion was, as seen through MSN's Live Earth webcast, nearly perfect in its execution.

With a reported 8 million people viewing 15 million streams for the event breaking the record set two

years ago by Live 8, Live Earth is broadband's biggest event to date!

Steve Bryant, Hollywood Reporter


Finding Local Information


While Socializing


J&J Acuvue Theme Pack


http://www.catho.de/JandJ/game/droplets.html

http://www.catho.de/JandJ/game/droplets.html

J&J Acuvue Theme Pack


While Working


While Working


http://office.microsoft.com/en-us/default.aspx

On the Road


Our Unmatched Audience Reach

Digital Lifestyle


Case Study: Nokia


Nokia New Year’s EveLive Concerts - a truly Global Entertainment Experience

Challenge

• Help Nokia own the music category on a global basis

MSN Solution

• Created a truly global entertainment experience via live concerts in five cities for one giant party during new year’seve in HongKong, Mumbai, Berlin, Rio and New York

Result

• Nokia New Year’s Eve concerts were the only branded communications to consumers at the time

http://nokianewyearseve.msn.com


http://nokianewyearseve.msn.com/

Nokia New Year’s EveLive Concerts - a truly Global Entertainment Experience

Impact

• Hundreds of thousands of viewers tuned in during the 24 hour period to watch the live streaming concerts in real time

• 1,000+ posted images/videos of their experiences

http://nokianewyearseve.msn.com


http://nokianewyearseve.msn.com/

Case Study: Blogging / Volvo


Volvo: “What’s Your Story?” Connecting advertisers with digital storytelling

• Challenge: Engage adults 25 -54 in a way that connects Volvo with real-life user stories

• MSN Solution: Associate Volvo with the blogging experience and MDAS’ platform to bring real-life consumer stories to life

• Result: Associates Volvo with the blogging experience, rather than the content itself. As result, Volvo “trustworthiness” showed lift

• Impact:

– Significant lift in key brand metrics

– Visitors are 3.5x more likely to search the web for Volvo keywords

http://whatsyourstory.msn.com/


http://whatsyourstory.msn.com/

Blogging in Asia

• Almost half of the online Asian community have a blog (45%)*

• Why do Asians blog?*

– Keep in touch - 53 % blog to stay close with friends and family

– Self Expression - 50% started their blogs to voice strongly held opinions

• 48% of young Asians say reading blogs is their favorite online activity **

*Blogging Asia: A Windows Live Report, 2006.**Synovate Young Asian Survey, 2006.


Customized Solutions - Recently launched

• Starwood Westin: Renewal http://renewal.msn.com

• Philips: Ambilight http://movies.msn.com/movies/movie-trailers/ambilight

• Nissan Infiniti: Open for Design http://openfordesign.msn.com

• Microsoft: Show Us Your Wow http://showusyourwow.msn.com

• Ford: Ideas from the Edge http://fordedge.msn.com

• Prilosec OTC: Bunco games http://bunco.msn.com

• LeBron James: LeBron on MSN http://lebron.msn.com

http://renewal.msn.com/

http://movies.msn.com/movies/movie-trailers/ambilight



http://openfordesign.msn.com/

http://showusyourwow.msn.com/

http://fordedge.msn.com/

http://bunco.msn.com/

http://lebron.msn.com/

Contact Information

• Online Services Group - Southeast AsiaMicrosoft Operations Pte Ltd1 Marina Boulevard #22-00Singapore 018989

• Chris SchaumannCountry Sales Manager, Singapore+65 (6882) [email protected] | www.live.com | spaces.live.com | mail.live.com

• Find out about the latest information and case studies at http://asia.advertising.msn.com/

• Sign up for the new MSN Newsletter at https://www.msn-advertising.com/msn_ad/

• Get new Windows Live Services: http://ideas.live.com/


mailto:[email protected]

mailto:[email protected]

http://www.msn.com.sg/


http://www.live.com/

http://spaces.live.com/

http://mail.live.com/

http://asia.advertising.msn.com/

https://www.msn-advertising.com/msn_ad/



http://ideas.live.com.sg/
