Heineken UK Quits TV

Random Culture writes Heineken UK Quits TV, in order to invest more in POS marketing. All because the clutter on TV is increasing, and Sky Plus, enabling viewers to skip ads, is on it’s way in the UK (writes Times Online)
And Random Culture wonders:

Umm, wow… did anyone tell them about this whole Internet thing? Most people seem to be taking money away from TV and putting it online. This move by Heineken UK seems to be a move in the opposite direction.

Though I also happily write about companies putting their TV and Print budgets online, I don’t think it’s a logical step to put it there. Quite often, other channels might have the same or even more impact. May be POS can increase sales much more than any online campaign? (I’m sure Heineken has done their homework.)

In addition, they will remain on TV during sport events, when they sponsor short �break bumpers�, as they call it.
The question arises whether the brand image can be sustained through these marketing activities.

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in the press (again): changes to the advertising and media landscapes

Some articles about shifts to new media:

  • the nytimes warns advertising agencies that clients are faster in adopting to new advertising opportunities (online being only one option) than the regular ad agency. Disappointing for agencies – they also state the while agencies used to push clients, it’s now the other way around…
  • The WSJ warns the new media not to loose grip in keeping up with new developments. They state examples of yahoo having lost out to Google, Netscape to MS, Yahoo and Google, etc. Message: always stay on top…
  • The Times Online states that AEGIS, a media buyer, sees big shifts of media budgets moving online.

Reading this and other articles in the past, the new media is gaining ground. First, because advertisers need alternatives to classical advertising, secondly, because they can save big money by going online.
Good for us.

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A recent debate on the shift from traditional to new media

24/04/05
The Economist also refers to Murdochs statement. And though being part of the traditional media, it objectively admits that the media need to rethink their future profile.

22/04/05:
Marketing Vox has a short article on this matter: the decline of classifieds in the papers will decrease by 20% by 2007.

And Adrants announces a study by Forrester and Headlight Vision, which will be released today. It states that through multitasking of users, the internet doesn’t lead to a decrease in consumption of other media. But as adrants says correctly: the attention of the user will be divided and the impact of say, advertising will go down nevertheless.

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Checking my feeds and a few (online) newspapers lately, I noticed that there are quite a few articles about the fall of traditional media, especially the paper newspapers.

It’s a long post, but a (hopefully) good summary of latest writings on this matter.

The Long Tail started me off, with a short summary on negative media trends offline (TV, newspapers, Music, Radio, Magazines and Books – and positive media trends (movies: theatres and DVDs, and of course my favourite: the web).
(via )

The longtail links to an article by Editor&Publisher, which summarises slow or decreasing ad spent. Even though some companies might face increases, the trend is negative, only online contributes in some cases and should have an overall double digit growth, but it still makes only 3-5% of the revenues.

The longtail also linked to clickz, with a very enthusiastic forecast, which predicts a 30% growth this year, however online advertising will still only be 5.3% of all ad spending. „The Web sites of traditional media companies will be big beneficiaries of this growth,“ Myers said in that article. (He also goes on about which elements of online marketing will have most growth potential.

The AdAge.com Email Newsletter had this headline: „IS THE AD INDUSTRY HEADED FOR CHAOS?“ It teases a long article in the print edition that stats that the ad industry is moving towards choas. OK, no panic. But apparently it’s about the changes to mass advertising. Traditional media will be less interesting for marketers, but the new media aren’t ready yet to carry the load of marketers spending, due to lack of infrastructur or scale. Unfortunately, I can’t get this paper here in Germany…

PR Opinions is tired of „the new sweeping away the old“ and points to this article, which discusses podcasting (vs radio) and video wars (e.g. google’s new tool), and states that the „big media“ are indeed necessary, because bloggers

get into arguments with each other and spend a few weeks in personal blog battles. They get tired of not making any money at their altruistic pursuits. They get fed up with all the constant negative feedback (which we sometimes refer to as the „peer-review“ system intended to keep blogs honest) and they quit.

But this is not the point. And I don’t know why PR Opinions linked to this (even though it’s a nice read), but it’s about digital vs paper – not who does it and how they do it. And PR Opinions even says it:

But they are going to have to examine their business and start to think about how they can take advantage of the potential of the Internet – not the threats. They have a fantasic opportunity to merge the online and offline worlds.

But they also link to this article, in which it says the following:

Murdoch stressed that young people are showing they do not want to read print papers in the same way their parents do and are not likely to change.
He said young people „still want news and we are uniquely positioned to deliver that news. We have unique content to differentiate ourselves. The challenge, however, is to deliver that news in the way consumers want to receive it.“
„the threat of losing print advertising dollars to Internet advertising is very real; in fact it is already happening.“

ADJAB says, that in future, the papers will have to charge you next to nothing for classified ads, so that you still advertise in the papers. And it pointed to Newspaper&Technology who deepen in on this. But hey. Classifieds? Searching for an appartment, a car or a new stereo? Hello? This is exactly what the internet is good for: Searching.
Classified ads make made up a lot of revenue for the papers, but sorry for the darwinism: the papers will never re-gain this part of the revenue. And two thirds or more are coming from ad revenue – classifieds and big ads.

The traditional media, especially print, need to find an added value. The German site Spiegel.de (which does very well with its online version of it’s weekly publication) mentions how the papers try different formats (so you can read them properly in the subway), or even publishers who will use their distribution network to compete against the post service.

The editors of the offline press do not need to worry, as long as they start investing more in their online presence.
And Marketers – well, just the same…

Shift from offline to online will not be extremely dramatic in the next few years, as there are still enough people who fancy ink on their fingers and paper-cut injuries.
But the shift is becoming extremely visible, and it will cause the first casualties amongst the traditional press soon.

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PS: „Just came in“ aka just found it: a positive Article from Editor&Publisher which shows that there can be good money earned through online ads for online publications.

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JWT wants to trailblaze again

JWT have changed their way of thinking: they want to „stop interrupting what people are interested in and be what people are interested in.“
While the idea is nice for the consumer and certainly the right approach in todays cluttered, ad-tired world of TiVo & Co, I wonder how they will manage to persuade their clients to fully commit to this path, too. If JWT does this 100%, they will have to deselect many of the traditional media. And change the way they creatively package their messages. Both might lead to doubts among some of the more traditional advertisers.
But then again, maybe JWT wants to acquire different ones in the future. Focusing only on brands that like to take up that challenge.
Second thought. May be the ad industry in the US is already so „desparate“ that this is actually the only way to go?
We’ll see how it develops. I personally favour that move, because that probably means that we’ll see lots of interesting interactive stuff from JWT in the future.

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