Adknowledge Seminar29 September 2009

The State of

Advertising in

Australia

The State of Advertising

The sub text: Social Media

New Technology

New Audiences

New Engagement

Shock & Awe

Hearts & Minds

from

to

campaign

strategy

impact

surround the

consumer

guerilla

marketing

ambush

marketing

penetration

coverage

weight

fulfillment

touch-points

dialogue

intimacy

connection

engagement

conversation

listening

Limited Choice, Boundless Attention

High Competitive Entry Barriers

Competitively focused

Boundless Choice, Limited Attention

Low Competitive Entry Barriers

Consumer focused

Brands with Values and Attributes

Products with Claims

An evolution in the economics of

advertising

The Evolution

Product Claim

Values Based

The Cycle of Media

35433843

4392

4980 48704580

4790 4923

5414

5915 5954

6587

70617337

7970

74237682

8395

9387

1010910527

1172012130

11865

100108

124

141 137129

135 139

153

167 168

185

199207

225

209217

237

265

285

297

331342

335

0

2000

4000

6000

8000

10000

12000

14000

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

E

0

50

100

150

200

250

300

350

Ad spend ($million) Index versus 1986

All Ad spend 1986-2009 ($million), and indexed versus 1986

34.2 34.7 33.4 33.8 35.732.7 34.7 35.8 34.5 34.2 35.2 34.2 34 33.4

34.433.5 34.6 34.8 34.8 33.4 32.5 32 30.7 28.4

48 48.3 50.2 50.449.1

51.7 50.4 49.3 51.7 51.9 51.353

53.5 52.848.5

52.6 49.9 49.3 47.947.2

44.843.6

42.437.9

8.9 9.3 8.9 8.6 8.8 9.2 9 9 8.8 8.6 8.88.2

7.9 8.8 8.6 9.49.1 8.8

98.9

8.88.4

8.2

8

7.2 7.2 6.9 6.9 5.8 5.8 5.4 5.4 4.4 4.3 4.26.9

3.9 4.2 3.5 3.73.4 3.5

3.53.5

3.63.7

3.7

3.6

2.2 2.8 4.1 6.19.5 11.5

14.116.5

0%

20%

40%

60%

80%

100%

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

E

TV Print Radio Cinema OOH Online

Share of Ad spend 1986-2009 by media type

0

1000

2000

3000

4000

5000

6000

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

E

TV Print Radio Cinema OOH Online

Print has steepest fallRadio hardly affected

All fall exceptOnline

Ad spend 1986-2009 by media type ($million)

100141

806

232

371

599

1174

1023

100 109 122

132 137158153 154

0

200

400

600

800

1000

1200

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

E

0

200

400

600

800

1000

1200

Online ad spend index versus 2002 All ad spend index versus 2002

Slower growth,

but no fallOnline spend versus all advertising

spend 2002-2009 indexed versus 2002

This is the confluence of cyclical and

structural influences

The future where technology meets

psychology

Downturn has forced a tighter

coupling of

values & value conscious

Our future has two media trinities

Bought

Earned Owned

Trinity 1

Multi-Media

Our future has two media trinities

Interactive

Mobile Social

Trinity 2

MarketingOrientation

The Future Multi-media Game Play

Personal Communication

2009

2014

Mobile Internet

Social Media

PCInternet

Low Reach High Reach

DigitalTV

Magazines

AnalogueTV

MassCommunication

Newspapers

Radio

Out of home

What if, in the future…..

Importance Ad ExpenditureMain Media

Social Media

Time2009 2014

In the future

Who is king?

Holy Grail

• Measurement and recognition of multi channel performance

• Data in everything to an increasingly granular level

• How do we use this data to generate knowledge for our clients in terms of where and how they should INVEST

ROI

Chemistry

+

Culture

=

Collaboration

Looking ahead

data/creativity

This future which has started is

about…..1. An increasingly personalised opportunity to

effectively communicate

2. Technology meets psychology

3. Media in the forefront as a Holy Trinity of bought,

owned, earned or mobile, social or interactive

4. Investment patterns must and are changing

5. The Holy Grail is still knowledge of what is

working best