So, one of my first projects for my Texas Media class is to write about the biggest problem in media today. I thought it would be ironic to put it on here, because the advent of the Internet is what is screwing everyone up.
I actually love this stuff, that is why I am majoring in it and ready to devote the majority of my life to it. I actually wrote most of the following document, so if you can shuffle through it, happy reading!!
What is wrong with the media today?
Part of a project I did with the following girls: Meg, Jennifer, Amanda and myself (Kendra)
“They don’t want to rely on the morning paper for their up-to-date information.
They don’t want to rely on a Godlike figure from above to tell them what’s important. They certainly don’t want news presented as gospel.” -Rupert Murdoch as said to the American Society of Newspaper Editors
Currently advertising media planners and the industry itself are fighting to please the young, evolved consumer. Consumers have grown accustomed to choosing each media contact they wish to use and have become spoiled by their ability to filter out advertising.
While advertising planners react to new media trends, consumers are still finding different ways to react to the newest advertisement placements.
Television
“We’re a nation of gals at a bar called Television accepting drinks from advertising guys we have no interest in, and someone’s about to tell the advertisers that we’re out of their league.” -George Notelling
In 2006, 98.2% of households in the United States have a TV, so television is a huge way to reach mass amounts of consumers. (1) Advertising on television is changing rapidly because of the power of the consumer. With the rising use of TiVo and other digital video recorders advertisers are fighting to get their message seen and not just skipped over with a push of a button. Consumers can opt in to the commercials that they want to see, but they also have the power to opt out and not have any exposure at all.
TV audiences have long been trying to avoid the ad, so naturally consumers are paying the extra fee for DVR. Advertisers have to re-evaluate their approach to effectively reach potential customers.
One strategy is to advertise in more live events since viewers are more likely to watch when the event is happening. (2) TiVo, along with Comcast, is trying to accommodate advertisers by their new plans for a new ad system that would automatically update the commercials recorded on your TiVo, even if the program that was recorded is weeks old. (3)
As the younger audience is being drawn to the Internet, broadcasting companies like Fox and Comedy Central are making their programs available for downloading or streaming from their websites. With the ease of watching a favorite programs off your computer or iPod, consumers are utilizing getting access to these programs through network websites and Apple.
Especially young consumers have grasped onto the downloading phenomenon. US adults under the age of 35 are roughly twice as likely to have downloaded television programs from the web as the population at large. Those under 25 are almost three times as likely to have downloaded TV shows. (4)
NBC and Apple have paired up to try to increase viewer ship. Since the October 12, 2005 debut of the iPod video Apple has sold 8 million TV shows through iTunes. (5)
“The young-adult target is tougher to reach with traditional media,” said Kaan Yigit, an analyst with Solutions Research Group in Toronto. “They are either out on the town with friends or in the office working late, versus at home glued to the TV set,” he said. “The power of the on-demand new media platforms to be additive is more potent among members of the younger demographics.”
While consumers are fonder of watching video on big screens, they settle with watching on the computer screen or iPod screen so ads don’t interrupt their viewing. Most ads are placed beside the box where the video is playing and are visible, but not butting in while the consumer is enjoying the show. Overall, consumers no longer have to submit to the networks scheduling. They can watch TV whenever they want and wherever they want.
Radio
For decades, radio has not been shaken out of media mix. Even with the advent of 8-tracks, tape players and CDs, audiences still turned to the classical radio format for their drives to and from work and at home on the weekend.
In such a short time, other formats like satellite radio, Internet-only radio, podcasts, MP3s and iPods have laid AM/FM radio in its grave. Although the most current Arbitron research from 2004 shows that 94% of people 12 and older still listen to traditional radio, current research is showing that younger audiences are getting their music and verbal journalism by downloading or streaming on the web. (6)
With the advent of Internet radio, the ability to work at your computer and change radio stations through the web without having to listen to 30-second spots, several consumers of the classic radio format are switching to online. Due to this recent trend, experts are expecting Internet radio to increase tenfold by 2009. (7)
Satellite radio like XM and Sirius charge Consumers complain about paying for radio and still having to listen to ads. Clear Channel Radio Stations are now offering primary broadcasts in HD as a plus to their network and striking back at satellite radio. Their goal is to offer Clear Channel Radio listeners better, digital quality sound, without a subscription fee. (8)
While satellite radio started out promising uninterrupted, near CD-quality music beamed to your radio from space, now an ad here or there is getting slipped in. (10) A recent J.P. Morgan survey found that satellite radio’s biggest draw is the absence of ads, but only for music channels. Not the talk shows or sports channels. Of Sirius’ 120 channels, 55 stations air commercials. Sirius has pledged that music programming will remain ad-free and the company will continue to be ‘very sensitive’ to the commercial loads. (9)
The digital radio is quickly speeding up the competition between traditional format and online while young people are quickly grasping the interactive convenience.
Outdoor
Outdoor billboards, once considered visual pollution on America’s highways, are being revamped to digitalization. No longer outdoor advertising is being limited to blimps, airplanes and giant signs, but companies, like Viacom Outdoor and JC Decaux are experimenting with such things like interactive billboards and utilizing cell phones and iPods.
For example, last April Lenny Kravitz could be seen looming over New York’s trendy SoHo district for Absolut Vodka. In one of his hands was a cable with bottle-shaped plugs and bystanders were invited to download a free four-minute MP3 track with their Bluetooth phone. (1)
Also, companies are looking into areas that consumers have down time and are looking to consume media, like waiting for a plane at the airport or washing their hands in the bathroom. In a restaurant bathroom on Miami Beach’s famous Ocean Drive, a Bacardi and Cola ad is projected onto a mirror. When you walk up to wash your hands the hologram disappears, but as you back up the image is re-projected. During spring break time on South Beach, youngsters can be seen jumping back and forth to make the Bacardi ad come and go away. (2)
But, many consumers are not happy with the marketplace being over saturated with outdoor advertising. Many fear that their community may become like New York’s Times Square. Cities like Jacksonville, Florida and Houston, Texas are creating harsh zoning restriction on advertising and fighting the big outdoor companies in court. (3)
This comes at a time when consumers are zapping commercials with TiVo, signing up for do not call lists and filtering spam that many ad agencies are utilizing the outdoor venue because it is one of the last media vehicles that will still command the attention of a captive audience.
With Houston issuing 253 citations in a day to RTM Media (3), Auburn, Georgia issuing fines up to $1000 for non-permitted signs that exceed six square feet, Malta, New York prohibiting illumination for outdoor advertising and Lombard, Illinois who plans to eliminate all billboards in the community in the next seven years, the $5 billion billboard industry is trying to rethink its strategy of reaching the American consumer. (4)
Alternative Media
With consumer’s attention being so segmented, advertisers are looking for new and innovative ways to appeal to its audience. At the Cannes Lions International Advertising Festival, USA tied the United Kingdom for the most awards. But in the category of Film awards for best commercials, “the UK took the Grand Prix and the USA didn’t even win a gold.” (1) David Droga, leader of the film jury, said, “’The U.S. is at the forefront of new media… But the industry in the U.S. has to be able to sustain and improve traditional and lead non-traditional media.’” (1)
Even though the U.S. advertising industry is falling behind in traditional media, they are excelling in alternative media, which according to Media Wire will be the fastest growing sectors. Internet is going to be the fastest growing segment, “growing at an average of 15.2% to $25.5 billion and out billing the radio industry by 2009,” and “out-of-home advertising will be the second fastest growing sector, with a 8.3% annual increase to $9.4 billion in 2010.” (2) A couple of examples of USA’s campaigns that use alternative media are the Starbucks Red Cup Campaign and the Nike Customization Shoe Campaign.
In Holiday Season of 2004-2005, Starbucks launched a campaign that “played off people's propensity to leave lattes on a fleet of cars by ‘forgetting’ magnetic red coffee cups on a fleet of cabs.” (3) Although, this idea created a “’made you look’” effect, people were not very welcoming to this campaign. Consumers in Boston critiqued the tactic as not being subtle because the cups were placed right in front of Starbucks ads. According to a New Yorker, the cups were much more subtle because they were on private cars with no accompanying ad or message. (4)
Nike purchased Reuters’ 23-story-high sign in New York’s Times Square for the whole month of May 2005. (5) Bystanders could customize shoes on the huge screen, and then purchase them online. Consumers enjoyed the interaction. One commented online that “the user experience is so hot, so innovative.” (6)
Through guerilla marketing, event marketing, product placement, gaming, concert sponsorship, street furniture, street teams, and etc., the USA advertising industry is reaching those hard to find and very spoiled consumers. Sometimes the campaigns are great ideas, but the target doesn’t respond well. Other times the campaign really intrigues the consumer and the consumer chooses to interact with the brand and product. No matter what the response to the campaign turns out to be, the marketer wants the consumer to include their brand into the consumer’s life and to do this advertisers need to not overstay their welcome, fly under the radar, and blend in with culture. (7)
Internet
Internet was once considered a foreign concept to most advertising agencies that would only use a miniscule part of their budget for banner and pop up ads. While agencies were concentrating on the traditional media mix, young people started playing online with such grassroots websites like MySpace, Facebook, Live Journal, Blogger and You Tube where they could social network with friends and be the commander of content on the web.
Now, with 23% of young people’s time being spent online, even the most conservative agencies are rethinking their ad budgets and trying to find a better way to grab consumers’ attention. Last year, only 6% of total advertising expenditures in America were for online. That number is expected to increase.
But, as the Rupert Murdochs of the world begin to invade young people’s online environment, the users are becoming outraged. As commented on adverlab.blogspot.com, the creation of corporate profiles and advertising on MySpace has made the site less appealing and organic. (2)
Recently, the site Facebook.com launched a new mini-feed feature that allowed the college-based demographic to see every movement that their friends were making on the website. Outrage amongst users grew and protests through e-mail, groups, telephone were delivered to the creator of the site.
“We really messed this one up,” Facebook’s chief executive, Mark Zuckerberg said in an open letter to users. “We have been coding nonstop for two days to give you better privacy controls.” (3)
As advertisers learn that they can no longer be the “god-like” voice that dominates the media, that they must follow and submit to whenever the consumer is ready to read or watch their ad, their approaches are becoming less intrusive.
On YouTube.com, the most popular videos are actually ads. The most popular are the ones that include info about popular bands or TV shows. It’s part of their new idea of how to advertise without making it annoying. (4)
“Advertisers have to give viewers something special, something unique, in exchange for their attention.”
As the Internet is the leader in groundbreaking advertising, You Tube is now allowing advertisers to create "channels" filled with clips they produce themselves, and then sell sponsorships to other advertisers. The Paris Hilton channel on You Tube recently allowed the Fox show “Prision Break” advertise on their video. (4)
Media people are finally embracing Blogging, the medium that was sneezed at by most professional journalists in the country a year ago. Everyone from Brittany Spears who writes about “zoo experiences” to protestors who want to speak out about policy, and from professional companies who want to hear employees discuss their work experience to AOL wanting consumers to write and target them with advertising, blogging is growing. Advertising opportunities are expounding in this arena, and while agencies are still scratching their heads about how to get into this without placing banner ads and making ficticious blogs, the world of online continues to grow.
In the magazine and newspaper arena, once major players in the media mix, are now being outdone by the evolution of print journalism on the Internet. Young consumers are changing how they consume the news and, instead of subscribing to publications and purchasing at newsstands, they prefer to read their information online.
Recently, according to MediaPost, the Magazine Publishers of America is going to supply one-year electronic magazine subscriptions to 4,000 to 5,000 selected students at five colleges with original content and advertising. (1) Students at Parsons School of Design will have a free subscription to Elle and Northwestern University Kellogg School of Management will receive Business Week if they opt-in to the program and advertisers will have to pay extra to reach the new students.
Many question if this program will be effective and do not think that students will pay for the pubs after receiving them for free. The added value may actually have a negative impact on magazines with students reproducing articles and sending them over the web to various people (a la Napster-esque).
It may be too soon to switch magazines and newspapers to a digital format. 40% of America still consumes the newspaper in print form. The number of web readers that is growing while print is decreasing, but web viewing of newspaper is still only 31% of circulation. (2)
Older consumers are still very active in reading their magazines and newspapers in print form, as we can see that the top two paid magazine circs in America are the AARP Bulletin and AARP the Magazine. (3) But the younger consumer demographic is practically killing the industry because they have so many options for media vehicles. The traditional media mix of advertising is completely changing. As we see such magazines like Teen People and For Me fold, and largest newspaper holding company, Knight Ridder, demanding to rid all newspapers that are not successful on the Internet, the young audience of consumers is practically destroying the publications industry. (4)
Even journalism itself is changing on the web. According to the Washington Post, no longer are the younger consumers interested in reading information, but the popularity of video has spoiled consumers into receiving news stories that provide instant gratification like watching a robbery happen instead of just reading about it (5).
Magazines are not completely dead. One area of consumer magazines that is growing amongst young girls is the celebrity magazine arena with such pubs as US Weekly and OK magazine that provide our young people with such important stories like “A New Love for Jess” and “Brad and Angelina: Is there Trouble?” (6)
Also, a surprising trend in India has shown newspapers growing while Internet sales slowing. The Asia Times reported the print format was more popular to consumers than to read on the web. (7)
Print form is not dieing, but as media buyers demand more for their dollar in e-mail blasts to subscribers and online banner ads, the industry is having to reinvent itself into a more digital world that young people want to tap into.
TV and Radio
(1) Media Trends Track. Trends in television. Retrieved September 10, 2006, from http://www.tvb.org/nav/build_frameset.asp?url=/rcentral/index.asp
(2) Duncan, A. (2005, April 14). DVRs a big concern to advertisers. Retrieved September 10, 2006, from http://advertising.about.com/b/a/161654.htm
(3) Prince, S. (2005, April 14). Skipping ads with TiVo and other Digital Video Recorders becoming a problem for advertisers? Retrieved September 10, 2006, from http://dvr.about.com/b/a/162291.htm
(4) Sass, E. (2006, September 8). Young Americans Driving Online Video Surge. MediaPost Publications. Retrieved September 10,2006, from http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=47859&Nid=23165&p=345278
(5) Whitney, D. (2006, January 16). NBC:iPod Boosts Prime Time. TV Week. Retrieved September 8, 2006, from http://www.tvweek.com/news.cms?newsId=9191
(6) http://www.journalism.org/node/836
(7) http://www.clickz.com/showPage.html?page=3443101
(8) http://www.clearchannel.com/Radio/PressRelease.aspx?Press ReleaseID=1703
(9) Crawford, K. (2005, February 9). No satellite radio for iPod? Retrieved September 10, 2006, from http://money.cnn.com/2005/02/09/news/midcaps/sirius_ipod/index.htm
(10) Bonsor, K. How satellite radio works. Retrieved September 8, 2006, from http://electronics.howstuffworks.com/satellite-radio.htm
Outdoor
(2) Personal experience
(4) http://www.mediainstitute.org/ONLINE/FAM2002/Comspeech_I.html
Alternative Media
(4) http://starbucksgossip.typepad.com/_/2005/01/starbucks_adver.html
(6) http://bbdolab.typepad.com/the_lab/2005/05/the_nike_builda.html#comments
(8) http://www.howdesign.com/competitions/idc/2006/best_of_show.asp
Internet
(1) http://web.lexis-nexis.com.content.lib.utexas.edu:2048/universe/document?_m=26ec8687cedb2b4124484d2350003103&_docnum=6&wchp=dGLbVtz-zSkVA&_md5=b1ac03d69080783d236c9994f15dfcf7
(2) Adverlab.blogspot.com
(3) http://dwb.newsobserver.com/24hour/technology/story/3368365p-12395853c.html
(4) http://www.latimes.com/business/la-fi-youtube22aug22,0,7474526.story?coll=la-home-business
(1) “Reading, Writing And Algorithmic Tick: Mags Ask Students To Read Online,” by Tom Siebert, Friday, Sep 8, 2006, www.mediapost.com
(2) Pew Research Center (http://people-press.org/reports/display.php3?ReportID=282)
(3) SRDS 2006
(4) "Winning Online" -- A Manifesto,” by Tom Mohr, September 04, 2006, www.mediapost.com
(5) “As the Internet Grows Up, the News Industry Is Forever Changed,” by Patricia Sullivan, Washington Post Staff Writer, Monday, June 19, 2006, http://www.washingtonpost.com/wp-dyn/content/article/2006/06/13/AR2006061300929_3.html
(6) http://www.washingtonpost.com/wp-dyn/content/article/2005/09/22/AR2005092202156.html
(7) http://www.atimes.com/atimes/South_Asia/HI06Df01.html
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