EarlyMedia Trendsfor2013

EARLY MEDIA TRENDS FOR 2013

By Frankie Rodriquez
Aggressive and successful marketing campaigns are relying on
diversification of media platforms in the first quarter of 2013. The early
trend in 2013 is that smart businesses are strategically leveraging their use
of owned, paid and, increasingly, earned media.
These terms may be self-explanatory. But there are significant differences
that you should know about. Each is clearly different from the other. The
outcomes, if not strategically planned, can range from scratch-your-head
frustration to where-did-that-come-from success. So it is extremely
important for todays business leader to understand each form of
interactive media, and, again equally important, to know how to leverage
them for best results for the organization and its brand marketing.
Lets first look at what the different terms mean. Forrester Research is a
global research and advisory firm that provides consulting for competitive
and complex challenges to companies and organizations in 17 countries.
Forrester published a report recently that clarifies the distinctions and
concentrations of these forms of interactive media.
Owned Media
This is the most ancient of media usage. Owned media is a channel the
brand owns. The earliest media of this type includes the first signs on
storefronts in Europe. These early signs were placed by the owner outside
the place of business. The signs usually included a symbol of the business
(logo) along with the business name because there were many people who
could not read in those days. Todays striped barber pole is a lasting
example. Owned media effectively builds long-term relationships with
existing potential customers. Features of this media type are control of the
message, cost efficiency, reaching niche audiences and a long shelf life.
The challenges of this media type are uncertainty, consumers have less
trust of self-laudatory communication and this type is slow in building to
effectiveness.
Paid Media
This is the most common and traditional understanding of professional

media usage. A brand pays to leverages a channel. Its origins are in

England. The first print ad was created in 1472. It was a handbill
advertising the sale of a prayer-book. It was the first time a business
intentionally paid to have its message shared or placed in front of potential
consumers of the message. Paid media features include: quicker reach to
prospects, the reach (number of impressions/customer) is larger, the
message can be placed on media experiencing the most demand by
customers and, to a lesser degree than owned media, control. Paid media
is not without its own obstacles: consumers assign poor credibility to paid
media, the noise of other advertisements leads to clutter and consumer
response rates decline unless the message is constantly upgraded.
Earned Media
This is the oldest form of message-sharing and has found itself in the most
technologically intense means of communication. Earned media is
defined as the moment the customer becomes the channel of
communication. This is true social media. This is co-mmunication, not
merely munication as the other two forms tend to be. Word-of-mouth is
earned media. Today, from Gangnam Style to cute kitties earned media is
about the buzz and becoming viral. Earned media entails listening and
responding. Strategic use of owned and paid media results in ongoing
back-and-forth personal and commercial exchanges between brand and
consumer. The features are a high degree of credibility (resulting from
trusted, personalized communication), already a part of all transactions,
and the transparency of the relationship ensures longevity of the same.
The challenges presented by earned media include lack of content control
(usually due to lack of a strategy), susceptible to negative influences, the
scale of reach is not the same as paid media (nor as expensive) and
results are more difficult to measure.
The trend in 2013 for successful campaigns includes a strategic,
intentional utilization of all three forms of media. Unless you have the
marketing budget of companies such as Coca-Cola, Shell Oil, or Capital
One Bank, a business cannot rely on only owned and paid media to
compete. Even those three companies have a vibrant, intentional and
strategic earned media component to their marketing strategies that have

been ramped up in 2013.

Media Mix Challenges Weigh Heavy on Marketers in Increasingly Digital

LandscapeCHICAGO (February 5, 2013) Advertising agencies are increasingly
concerned with how to best utilize media mix, according to STRATAs most
recent quarterly survey. Twenty-two percent of agencies surveyed indicated that
media mix was a challenge. Tellingly, 76% of those polled advertise using at least
three mediums per client campaign, indicating the need for multi-platform
advertising.The STRATA survey of nearly 100 media buying agencies in the
fourth quarter also shows the largest concern in 2013 is attracting new clients,
with nearly one third of respondents citing the challenge.Marketers expect digital
spending to continue its upward trajectory. Currently, 54% percent of surveyed
agencies say their clients are most interested in advertising on TV above all other
mediums. Digital comes in second at 30%. However, digital may eclipse
traditional advertising in the near future, with nearly one third of respondents
expecting to spend more on digital than on traditional media within 1-3 years.
Within the digital subcategories, over 80% of those polled said online display
would be their focus followed by search at 71%, and social media at 52%.New
advertising mediums are evolving at an unprecedented pace, and agencies are
constantly trying to figure out how to get the best return on investment for their
campaigns. It makes sense that understanding how to attain the best possible
media mix could be a very real challenge today, said John Shelton, CEO and
President of STRATA.2013 Outlook UncertainHalf the agencies polled expect
their growth in the first half of 2013 to be the same as the last half of 2012. Only
37% of agencies saw their business increase at the end of 2012 compared to a
year ago. This marks an 18% reduction from the end of 2011. Furthermore,
nearly a quarter of the agencies polled see their business decreasing, a 36%
increase from the fourth quarter of 2011. Theres a clear split in the advertising
community as to how much growth well see in 2013 after the political spending
of 2012 has come to an end, added Shelton. The orders we have seen recently
gave us confidence that we would see a 3-5% increase in spending this year, but
the positive sentiment may not be shared by all advertisers. However, nearly a
third of agencies said they expect their business (and the economy) to return to a
strong growth period by mid-2013, and 22% answered that they are already in a
strong growth period. Similarly, 29% plan on hiring, the highest percentage in
nearly a year. Additional Points Focus on Spot TV and Spot Radio continues
to decline in 2013, with 17% of respondents indicating that their clients are more
interested in advertising on Spot TV than they were last year (down 40% from
4Q11). 32% are less interested in advertising on Spot Radio than they were a
year ago. DVR time shifting is still a moderate concern for 40% of respondents
(down 15% from 3Q12). 23% of agencies say they are less interested in Out

Of Home advertising than they were a year ago (second largest percentage in
the last nine quarters). Sixty percent of advertisers are less interested in print
than they were a year ago, marking the second worst percentage in the last ten
quarters. Advertisers expect to see 2013 trend toward an increase in digital
adverting (78% of respondents), and a reduction in print advertising (40% of
respondents).For More Information:J.D. MillerSTRATADirector of Marketing and
Communications312-222-1555ABOUT STRATA STRATA is the only system
provider that connects both media buyers and sellers. The custom solutions
supplied by STRATA empower clients to sell and efficiently purchase all media
types including cable, broadcast, newspaper, radio, outdoor and digital
advertising mediums. On average, over $50 Billion in advertising dollars flow
through STRATA systems per year. As the system of choice for over 1,000
agencies nationally, STRATA provides media technology that enables
organizations to lead rather than react to industry developments. By
transforming the way advertisements are placed and tracked, STRATA adds a
new level of transparency to campaigns that is necessary in the ever-evolving
media world

Why do agencies expect to spend more on digital than traditional media

within one to three years? Do you think thats a realistic expectation?As I
mentioned earlier, digital does encompass a lot of different areas (mobile, social,
video, etc.), so the dollars continue to be spread over this area. It is a targeted
medium, so traditional media will not go away, but agencies are finding their
clients focusing more on digital than ever before.While a campaign may launch
on TV, it then may include banner ads, microsites, digital video, Facebook
elements, mobile apps and such. Those fragmented digital options do add up.
The media itself may not be as expensive to buy, but the cost and effort to
manage and react makes it a challenge.Is it realistic that it will completely
overtake traditional? In my opinion, no, but what I do see is a more diverse media
mix becoming more prevalent in agencies buying patterns. What sort of
expectations for 2013 advertising do agencies have? Why?In data we
gathered from our STRATA systems earlier in January, we did notice that ad
buying was up 3 to 5 percent over last year.Optimism is definitely there as nearly
all agencies expect their staff to either remain the same or even add staff this
year29 percent plan on hiring. Over a third of our agencies expect the first half
of the year to be better than the last half of 2012.We expect that the auto, home
and financial industries are going to make a strong resurgence in 2013 to lead an
uptick in advertising and fill the void left by political advertising.
Nielsen 2012

Global Advertising Trends - Q3 2012

While global ad spending rose 4.3 percent in Q3 2012, the Western Europe
market continues to see cuts, with a 4.8 percent decrease from Q3 2011.
Main Events
Global consumer confidence increases one point from Q2 to 92
North America and Europe report the only regional consumer confidence
increases, though discretionary spending patterns remain stable globally
from Q2
U.S. holds presidential elections in the fourth quarter
The civil war in Syria continues, with reverberations in surrounding countries
Main Facts
Advertisers boost budgets in Q3 by 4.3%
North America sees a significant influx of ad spend during Q3 (+10.2%) due to
increased Automotive and Industry & Services ad budgets
Asia Pacific also sees an improvement within its ad market during Q3, up
+3.5%

AsiaPacificPoisedtoDominate
NorthAmericaasWorldsTop
AdMarket,AccordingtoMost
ComprehensiveEditionofthe
eMarketerGlobalMedia
IntelligenceReport
Digital Grabs Greater Share After Global Ad Spending

Passes Half-Trillion Mark

NEW YORK, NY (October 10, 2012)eMarketer, in
collaboration with Starcom MediaVest Group (SMG), today
released its annual Global Media Intelligence report on
media trends in major markets worldwide, for brands to use
as they plan advertising budgets and strategy for 2013.
According to the report, China is set to become the worlds
second-largest advertising market in 2013, and the secondlargest digital advertising market the following year, behind
the US. As a result, Asia-Pacific is expected to surpass North
America in total ad spending in 2014, thanks to
extraordinary growth rates in internet and mobile internet
usage, as well as rapid growth in digital advertising
spending.

Some other key findings include:

Globally, spending on advertising will rise from $538.75
billion in 2012 to $676.17 billion in 2016, as the
advertising industry has proved quietly resilient despite
ongoing economic hurdles worldwide.
Much of the growth is coming from Asia-Pacific, where,
eMarketer estimates, more than 1 billion people will use
the web at least once per month in 2012nearly 47%
of the global total. By 2016, this audience will number
almost 1.4 billion. Asia-Pacific will be home to some
2.15 billion mobile phone users this year. In China

alone, the mobile consumer base will top 1 billion in

2014.
Asia-Pacific is currently the global leader in mobile
advertising, with projected mobile ad spending of $2.56
billion this year. But North America is fast becoming the
worlds leading hotspot, expanding twice as fast as
Asia-Pacific. During the next four years, global
spending on mobile ads will leap from $6.6 billion to
$25.3 billion.
The UK has long been a cutting-edge market for online
advertising and marketing. ZenithOptimedia indicated
that spending on internet ads surpassed TV ad
spending in 2011, to become the leading category; this
gap will widen despite a modest revival in TV spending
between 2012 and 2016. eMarketer estimates that
digital ad spending will represent 35.7% of the entire
UK ad market in 2012 and continue to gain share
throughout the forecast period. By 2016, digital
platforms are expected to account for a hefty 44% of
all ad spending.
Economically, Latin America has shone brightly. But media
spending in the region is small compared to more
mature regions, though growing fast. Ad spending in
Latin America topped $30 billion in 2011, eMarketer
estimates, and will reach nearly $35 billion in 2012, a
rise of 12%.
Eastern Europe has suffered from the financial turmoil
afflicting many of its neighbors to the west. The

resulting slowdown has come at a bad time for the

advertising sectorand for digital advertising in
particular, which arguably hasnt yet achieved critical
mass in several countries.
eMarketer estimates that media ad spending in the Middle
East & Africa will reach $17.8 billion in 2012less than
one-tenth of the North American totaland approach
$23 billion in 2016. Ad spending per person in the
region will remain among the very lowest in the world.
But social networking is growing faster in the MEA than
anywhere elsethanks partly to the central role played
by social sites during the Arab Spring. Some 70.2% of
the regions internet users will use social media this
year, according to eMarketer projections. But that
group will represent just 11% of the MEAs entire
population.

According to eMarketer president Lisa Church, the latest

edition of the report is the most comprehensive Global
Media Intelligence report eMarketer has ever produced.
The 2012 Global Media Intelligence (GMI) report has more
than 270 pages, with nearly 700 charts covering media
trends in six major regions worldwideAsia-Pacific, Eastern
Europe, Latin America, the Middle East and Africa, North
America, and Western Europeand provides snapshots of 40
countries identified as core markets. The latest edition
contains dedicated coverage for seven more markets than

the 2011 edition, as well as forecasts on media usage and

advertising spending for 17 additional markets.
It is wonderful to continue our collaboration with eMarketer
to provide deeper insights on more markets to our clients,
and help them allocate their media dollars more effectively
globally, across all channels, said Kate Sirkin, executive vice
president of research at Starcom MediaVest Group.
SMG helped identify and gather data for local and core
global markets included in the report.
The Global Media Intelligence report is typically eMarketers
most popular report annually. After seeing record interest
among marketers for both the 2010 and 2011 Global Media
Intelligence reports, eMarketer expects the new report will
be its most popular report ever, as many eMarketer and SMG
clients are currently in the process of finalizing media
strategies for 2013.
Demand for information about media trends in emerging
global markets is at an all-time high, said Church. Its
gratifying that eMarketer and SMG have been able to work
together again to meet the growing needs of our clients.
eMarketer has expanded its global coverage significantly in
the past yeardoubling both the number of forecasts it
produces annually and the size of its research team. The
company opened a subsidiary in the UK earlier this year.
About eMarketer

eMarketer is the authority on digital marketing, media and

commerce, offering insights essential to navigating the
changing, competitive and complex digital environment. By
weighing and analyzing information from different sources,
eMarketer provides businesspeople, marketers and
advertisers with the most complete view of digital marketing
available.

MarketersSayTheyre
ShiftingFocusAwayFrom
TraditionalMedia
January 30, 2013 by MarketingCharts staff

Nearly 1 in 3 marketers plan to decrease their organizations focus on

newspapers this year, per results from a survey conducted by Aquent
and the American Marketing Association (AMA). In fact, traditional
media occupied the top 6 areas slated for a decline in focus this year
by respondents. Beyond newspapers, a significant proportion plan to
shift their attention away from consumer magazines (28%), radio
(24%), trade magazines (22%), and TV (21%).
Not surprisingly, these marketers are looking more at various digital
channels this year. Topping the list is mobile media, with 82% of
respondents saying theyll increase their organizations focus in this
area. That aligns with recent research finding mobile to be

perceived as the years most disruptive media and marketing

trend. Recent survey results from Econsultancy also revealed that
mobile is the most exciting opportunity for digital marketers
this year. Meanwhile, many respondents to the Aquent and AMA
survey also will increase their focus on social media (76%) and
marketing automation (75%).
Given their increased focus on digital marketing, its not surprising that
these marketers believe that the most in-demand positions this year
will be related to the digital space. Asked the top 3 positions they think
will be most in demand, respondents pointed to social media
marketing (25%) first, followed by online content (21%). Interestingly,
mobile marketing was further down the list, cited by just 12% of
respondents. But, mobile marketing skills will be hotter in 2-3 years,
according to the respondents. While half see social media marketing as
the hottest job in 2-3 years, mobile marketing isnt far behind, at 40%
of respondents.
About the Data: The survey was conducted online within the United
States by Inavero on behalf of Aquent and the American Marketing
Association among 2,620 marketing professionals, from senior-level
executives to entry-level marketers across a variety of industries and
organization sizes. Marketing professionals working within agencies
represented 24% of responses. Marketers from health-care, financial
services, professional services, and retail, e-tail & distributors were
also well represented, with each providing more than 15% of the total
responses.
The survey was conducted between the Oct. 31 and Nov. 19, 2012.
Respondents included marketing professionals on lists provided by
both Aquent and AMA. With a pure probability sample of 2,620, one
could say with a 95% probability that the overall results have a

sampling error of +/- 1.9 percentage points. Sampling error for data
from sub-samples is higher and varies.