MRG Evening Meeting: Beyond Display Advertising
Last night’s MRG evening meeting discussed how the industry is moving beyond display advertising and is increasingly using sponsorship, promotion and direct marketing to reach consumers in “more subtle and creative ways.”
Nicky Williams of ACNielsen MMS started the discussion by outlining the changing media environment. She explained that traditional media adspend is evolving as advertisers move beyond traditional methods to reach consumers in more imaginative ways.
She said: “The advertising schedules of ten years ago are no longer sufficient. Due to increasing media opportunities and growing agency buying power advertisers have more outlets than ever before.”
Quoting Ted Smith, vice president of Heinz, she explained that: “TV is important but smart companies will always find more innovative ways of reaching the advertiser.”
She emphasised the growing importance of direct mail as one of the most innovative and effective advertising methods. “Direct mail allows advertisers to deliver a specific message to an individual, which is what digital radio and interactive TV hope to achieve eventually. With £1.4 billion spent on direct mail last year it is bigger than TV, radio and press advertising combined,” she said.
She also spoke of the importance of “tuning the monitoring machine” and said that with ACNielsen’s New Media measurement system, which will be available by the end of the year, an accurate 360 degree picture of media adspend will begin to emerge.
Williams concluded by emphasising the importance of recognising and measuring advertising and sponsorship expenditure and assessing creative activity, as: “Staying ahead means knowing what’s going on.”
Tracy Waring, business group director at Taylor Nelson Sofres went on to talk about the effects of promotions and fast marketing for FMCG products.
She said: “With over 60% of sales decisions occurring at the point of sale, promotions can help brands double their share of the market and drive sales.” However she pointed out that the effects of promotions are short-lived, as sales often return to average or below average after the promotion period.
She explained that, according to a study of 30 major brands with large advertising budgets: “Promotions are about short term sales and don’t lead to additional revenues or gains for the brand itself.”
Waring went on to speak of the effectiveness of fast marketing, which combines direct marketing with intensive TV, radio or press advertising to provide: “Long term branding rather than short term unsustainable sales.”
She said that according to a survey of 30 brands using this method, sales were sustained over a longer period and returns on the initial investment were higher. However, she pointed out that while fast marketing is effective “it is a very expensive business” and advertisers need to think carefully about what return they expect from their investment.
Charles Isley, Research director at Thomson-intermedia, was due to talk about a new system that measures internet and direct marketing but was unable to attend. Adam Shoefield, head of non-broadcast trading at BLM Media was also unable to give his talk on client and agency media needs.
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