brad berens executive editor imedia communications, inc. changes in the marketing mix
TRANSCRIPT
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Brad BerensBrad Berens
Executive EditorExecutive EditoriMedia Communications, Inc.iMedia Communications, Inc.
Changes in the Changes in the Marketing MixMarketing Mix
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Celebrity Equations
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Jim Carrey Ben Stiller
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Christina Aguilera Erik Estrada
+ =
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Mick Jagger James Brown
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Part 1
The audience is changing…
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1995: Estimated Movie Tickets Sold
1 Toy Story 50.2 million
2 Batman Forever 39.8 million
3 Apollo 13 39.1 million
Top 3 Movies
Sources: Nielsen EDI, Box Office Reports and Exhibitor Relations
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2000: Estimated Movie Tickets Sold
1 How the Grinch Stole Christmas 50.3 million
2 Cast Away 43 million
3 Mission Impossible 2 39.6 million
Top 3 Movies
Sources: Nielsen EDI, Box Office Reports and Exhibitor Relations
Modest growth…
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2004: Estimated Movie Tickets Sold
1 Shrek 2 74.6 million
2 Spider-Man 2 60.2 million
3 Passion of the Christ 53.7 million
Top 3 Movies
Sources: Nielsen EDI, Box Office Reports and Exhibitor Relations
Things look GOOD for ticket sales, but…
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No 'Passion,' no problem? The summer of mixed messages
U.S. Box Office Hits Longest Modern Slump
'Batman' Can't Begin to Rescue Film Industry
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CNN did an online poll Friday, asking what movie people were most likely to see over the weekend. The new films "Herbie," "Bewitched" and "Land of the Dead" received 27% of the vote. The landslide winner, with 73%, was "None, I'd rather rent a DVD of something good."
Patrick Goldstein, Times Staff Writer
June 28, 2005
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Home Video: DVD Unit Sales
Year Film TitleUnits Sold (millions)
Gross Revenue (millions)
2005 (YTD) The Incredibles 14.01 $252
2004 Shrek 2 18.2 $316
2003 Finding Nemo 18.5 $320.4
2002 Spider-Man 12.2 $215.3
2001 Shrek 8 $157
2000 Gladiator 3.4 $63.1
Source: LeesMovieInfo.netDoes not count rentals.
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A VHS aside…
Year Film Title Units Sold (millions) Gross Revenue (millions)
2004 Shrek 2 2 $25
2003 Finding Nemo 3.71 $77.90
2002 Monsters, Inc. 9.2 $145.20
2001 Shrek 13.9 $228
2000 Tarzan 10.5 $210
The DVD market is bigger than the VHS ever was.
Source: LeesMovieInfo.net
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#1 TV Show: A Gradual Decline
1994-1995 Seinfeld 31 12.3 30,330,000
1999-2000 Who Wants to be a Millionaire? 29 11 28,533,000
2004-2005 CSI 25 9.5 26,308,000
ShareSeason % Viewers
Source: Nielsen Media Research
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#5 TV Show: Even Worse...
ShareSeason % Viewers
1994-1995 Monday Night Football 30 9.9 24,420,000
1999-2000 Friends 23 8.1 20,950,000
2004-2005 CSI: Miami 20 6.8 18,881,000
Source: Nielsen Media Research
One word to describe this?
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Oy.
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Implications…
• Your audience is fragmenting
• They go where they want, when they want
• We’re not talking enough about Games
• Mass culture is a lot less massive (but it hasn’t been around all that long anyway)
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Part 2
Show me the money!
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• Nearly all advertisers are spending more
• But more $$$ do not equal more audience
• You’re paying more for less
• And this does NOT include DVRs and SIMM
Who is spending what?
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Let’s zoom
in…
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After 2002, entertainment companies did not embrace online with enthusiasm…
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Who is missing?
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And, this just came in yesterday…
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Network TV growth had already slowed down in Q1, and then…
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Ad Icon P&G Cuts Commitment To TV Commercials
P&G to reduce "upfront" TV spending
P&G sharply cuts commitment to TV ads
Remember: P&G is the USA’s biggest advertiser.
June 13, 2005
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So why did P&G make the change?
• TiVo and other DVRs
• Internet and Games
• Increased investment in PPP
Generally, a move away from…
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"Spray and pray."
Wenda Harris MillardChief of Sales Yahoo!
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Although the budgets are miniscule compared to TV and newspapers, the big growth areas for marketing are more targeted.
And topping the list…
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Part 3
Online: what the fuss is about
(I’ve shown you this next slide before…)
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So why -- and how -- are most advertisers spending money online?
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WHY
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The Big Question
Should entertainment marketers follow the rest of marketers and invest more online?
Answer: Yes. That’s where your consumer is.
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Part 4
Entertainment Consumers & the Internet
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• Leading provider of marketing research for the entertainment industry
• Known for innovation in consumer understanding
www.comscore.com
(See press pages for insight on Star Wars Episode III: Revenge of the Sith!)
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Number of Unique Visitors (000's)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
No
v-03
Dec
-03
Jan
-04
Feb
-04
Mar
-04
Ap
r-04
May
-04
Jun
-04
Jul-
04
Au
g-0
4
Sep
-04
Oct
-04
No
v-04
Dec
-04
Jan
-05
Feb
-05
Mar
-05
Total Internet Users Total Movie Site Visitors
Entertainment marketers have the opportunity to reach almost 60 Million consumers per month via the Internet!
Source: comScore Media Metrix
40 to 60 Million U.S. Consumers Visit Movie Sites
Every Month!
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Percent of Internet Users Who:
0%
10%
20%
30%
40%
50%
60%
Nov-0
3
Dec-0
3
Jan-0
4
Feb-0
4
Mar
-04
Apr-0
4
May
-04
Jun-
04
Jul-0
4
Aug-0
4
Sep-0
4
Oct-0
4
Nov-0
4
Dec-0
4
Jan-0
5
Feb-0
5
Mar
-05
Visited Movie Sites Visited Music Sites
In March '05, 1 of every 2 Internet users visited a music site; and 1 of every 3 visited a movies site!
Source: comScore Media Metrix
Strong GrowthYear-to-Year
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Movie Site Visitors* Can Be Hard to Reach Through Traditional Media
• 31% to 34% are "light" TV viewers
Source: AiM, by comScore Media Metrix*Visitors of Yahoo! Movies, Moviefone, or IMDB.com
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Movie Site Visitors* Can Be Hard to Reach Through Traditional Media
• 31% to 34% are "light" TV viewers
• 28% to 30% claim they don’t listen to the Radio, or listen rarely
Source: AiM, by comScore Media Metrix*Visitors of Yahoo! Movies, Moviefone, or IMDB.com
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Movie Site Visitors* Can Be Hard to Reach Through Traditional Media
• 31% to 34% are "light" TV viewers
• 28% to 30% claim they don’t listen to the Radio, or listen rarely
• 59% to 65% have computers in the same room as their TV… and use them while they’re watching!
Source: AiM, by comScore Media Metrix*Visitors of Yahoo! Movies, Moviefone, or IMDB.com
= SIMM
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Sales of event & movie tickets on the Internet shows continued growth
Source: comScore eCommerce InsightsIncludes delivery of physical products, does NOT include streamed content
U.S. Internet Sales of Movie and Event Tickets
$-
$50,000,000
$100,000,000
$150,000,000
$200,000,000
$250,000,000
Janu
ary
Febru
ary
Mar
chApr
ilM
ayJu
ne July
Augus
t
Septe
mbe
r
Octob
er
Novem
ber
Decem
ber
2002 2003 2004 2005
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Consumers have proven that they want streamed content over the Internet …
43 45
57
69 73
90
September 2004 November 2004 February 2005
Percent of Internet Users Who Have Consumed Streamed Content Millions of Internet Streamers*Includes both streamed content and progressive downloads.
Source: comScore Streaming Report
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Particularly entertainment content, which was the fastest growing of all online paid
content categories in 2004
Source: comScore / OPA Online Paid Content Report – 2005 Release
Percent Change in Paid Content by Category (2004 vs. 2003)
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Consumers like streamed content
• Millions of consumers are watching online trailers, listening to music online, and downloading clips and movies every month.
• Even smaller sites can have very loyal viewers -- the average viewer on iFilm Network streamed over 20 times in the last month!
Source: comScore Streaming Report – February 2005
Number of People Who Streamed from This Internet SiteFebruary 2005
5,359,000
4,362,000
2,179,000
1,319,000
973,000
Walt DisneyInternet Group
Viacom Online
Warner Music
Vivendi-Universal
iFILM Network
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When Showtime provided a webcast of the "Fat Actress" Pilot on Yahoo!, over 15% of
the total viewing audience "tuned in"
Source: comScore Streaming Report
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Internet portals remain the primary source for consumer information about listings, reviews, and
show times
Source: comScore Media Metrix; February 2005
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Search marketing: movie sites vary in their use of the major search engines
Source: comScore Media Metrix; February 2005
Percent Share of Clicks to the Site by Search Engine
0%
10%
20%
30%
40%
50%
60%
70%
Google.com Yahoo! Web Search MSN Search
MOVIETICKETS.COM IMDB.COM HOLLYWOOD.COM Moviefone NETFLIX.COM MOVIELINK.COM
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The Internet: a great way to reach the emerging digital media services market
• People who use devices like Microsoft’s Media Center and Dell’s Media Experience use the Internet significantly more than other consumers.
• Also, 89% use Broadband making them an obvious target for online movie trailers, etc.
• They skew towards higher income, and larger households (5+) with parents aged 55-64 years old and teen-aged kids.
2691
4576
1616
2583
DMS Users Average Internet User
Minutes per User Pages per UserSource: comScore Marketing Solutions; March 2005
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Digital media services users are avid Internet entertainment consumers
• People who use devices like Microsoft’s Media Center and Dell’s Media Experience are significantly more likely to visit entertainment-oriented websites than the average Internet consumer.
% of Digital Media Services' Users Who Visit:
62%
61%
61%
51%
64%
67%Music Sites
Multi-mediaSites
Games Sites
Movies Sites
Television Sites
Sports Sites
Source: comScore Marketing Solutions; March 2005
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Conclusions
• Entertainment consumers are a moving target, but they are engaged with and passionate about your products
• Entertainment marketers need to catch up with these consumers
• Integrated marketing is the way to go• As mobile computing and wireless
entertainment spread -- enabling consumers to move even FASTER -- integration will become even more important
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