Zilele Biz- day 5: Media and Marketing
November 27, 2009 Leave a comment
The first conference was about the Media and Advertising market- which was under a dark cloud in 2009. Most agencies had to adapt to a new situation- the economic crisis- when budgets were smaller, clients wanted the same results with smaller amounts of money, while adapting to a changing market. The overall atmosphere was one of pessimism, because the agencies representatives didn’t seem to forecast a brighter future for the next year.
Most of them had to rethink their strategy on a monthly basis in order to keep up with their competitors and in order to maintain a low level of costs. (Laura Badea – Omnicom)
Unfortunately, 2010 will begin with a budget deficit of around -30 or even 40% from 2009, even though agencies expected a 5% increase for this year. (Teddy Dumitrecu – Publicis)
This is why agencies had to do some restructuring and reanalyzing the costs in order to preserve the current figures and market share.
2009 was, for most of the advertising agencies, a risky year- clients wanted to go for the safe way- the traditional campaigns that can be measured and have immediate results with relatively low costs (opinion shared by Nicoleta Pădure – Media Direction, Teddy Dumitrecu -Publicis and Claudia Chirilescu- Spoon Advertising).
Competition is now extremely big and settles some price and quality benchmarks that will have to be modified.
2010 will be a year when quality will be the one making a difference and will begin to be a competitive advantage. It may be a difficult year because the market will be dominated by prices- and this will have an effect on quality. (Dan Balotescu – Media Investment)
Consumer habits have definitely changed, expectations are higher and the market is more mature than the previous years. We are no longer in an era of irrational consumerism and we have to adapt our businesses- especially on the needs of the clients who are paying a closer attention to global trends.
Some consumer habits won’t change. Especially women will continue to go on shopping sprees, but on a smaller level and will think twice before purchasing an item that before was seen as a luxury item. We will go back to the basis- especially to those brands that offer us stability. (Nicoleta Pădure -Media Direction and Claudia Chirilescu- Spoon Advertising).
Companies that now invest in media are thinking long term- because after the crisis passes they will preserve their brand images and the consumers’ perception of a strong, stabile brand, even in rough conditions.
When it comes to media costs Romania is not an expensive country.
Even other forms of media were affected in one way or another of the current economic crisis. The press is now varying between the printed and online content. The publicity in the print content has decreased with around 40-60%. The subscription cost won’t be accepted by all the consumers because by definition the internet is free so they could look for some free or cheaper alternatives.
The online had registered some decrease during this crisis, but comparing to the other media the decrease was not that significant. It is a new media and it could adapt better and faster than the others. Nowadays online is not looked from a tactic perspective rather than from a strategic view. And this is really important taking into account that 63% of the urban population is now online.
The most affected parts of the online were those of financial- banking and auto industry as a consequence of the offline situation.
The second conference was about Marketing in the New Media Era .
The media mix has changed : the TV importance has increased, the online has increased significantly while the print has registered a dramatic decrease. We now have a highly fragmented media.
If in 2009 the buzz was social media, 2010 will be the year of portable media.
Simon Zsolt- CEO of Mediaedge:cia Hungary told that we have now 7 trends of the post broadcast of new age:
- social media= online word of mouth
- media will be everywhere (dynamic brand messaging in relevant environments)
- media will become more portable across time, device and place (deeper engagement through consumer controlled content)
- media will be more interactive instead of interrupting- we have here the concept of permission marketing
- media will be more transactional
- will be more searchable and measurable
- will be more social (micro-publishing)
Social media has changed the way we communicate. Do you remember how your life was before you were using social media?
Social media now builds communities (remember the Tribes of Seth Godin). Brands should participate in the communication process through: dialogue, energising, supporting and involving people rather than interrupting them.
Paul Garrison (CEU Business School) underlined the basics: marketing is not about awareness building, is about selling more stuff, to more people, for more money, more often and more efficiently.
He explained the concept of Exponential marketing = segmentation comes first, know your customer and than create your marketing objectives.
Furthermore he underlined the idea that IT should not be considered only when there is a need to cut back costs- it should be used to increase revenue ( using it to obtain a better understanding of consumers), by using CRM (customer relationship management).
The concern should be to put the customer back into CRM and don’t lose yourself in details like who will be updating the CRM database… You need to understand your customer’s lifestyle in order to be able to sell to him relevant products & services. Knowing your customer enables you to engage with him at a more personal level.
Next I attended the Cyber PR workshop which was pretty interactive. The audience in the room was really active on Twitter and engaged in conversations besides those discussed in the room- which was really crowded. People came especially for Crenguta Rosu (DC Communications) and for Bogdan Olteanu (Millenium Communications).
To be up to date, changes in companies need to occur : in structure, in procedures and in period. Social media can help you as long as you are actively participating: you shouldn’t leave your accounts to rust. (Crenguta Rosu)
The media consumption has changed. The spread of news online is now from many to a source. (Veronica Nicolae- Snapshot McCann PR )
Here is Bogdan’s presentation about the cost of online PR.
It seems that the online is not as cheap as everyone was talking…
Afterwards I attended another workshop: Marketing Through Social Networks which had a more fun approach and the speakers used videos to present the message : with web 2.0 consumers feel empowered. And you have to build, not just buy attention.
The perfect example for this was the campaign with the divorce between Advertising and consumers www.bringtheloveback.com
Mugur Patrascu (iLeo) had a funny presentation – he said that everyone is faking the realation with social networks. The consumer is like the ‘girl’ in the relationship while the brand acts like the ‘boy’.
Ionut Oprea (Standout) had also a really interesting presentation, but I don’t have more time to tell you about it.
Hope this long post was useful. Have a pleasant weekend!

