076 Strategy Notes with Bronwyn Higgs

M ost marketers and advertisers understand that new media has changed traditional ways of advertising. The decline of viewing of traditional media has been well documented. TV viewing and newspaper readership are both showing long-term decline. Australians, on average, are watching fewer hours of television. Low levels of interest in free-to-air television are even more pronounced among the keenly sought-after younger demographics. These trends have caused some to speculate as to whether the death of the conventional 30-second TV spot is imminent. Advertisers, in turn, are experimenting with new ways to get their messages before increasingly reluctant audiences. PQ Media reports that spending on alternative media strategies had risen by 16 percent in 2006. Of the alternative media segments, out-of-home advertising, branded entertainment marketing, mobile and interactive marketing were the superstars – all posting double digit growth. Interest in branded content and product placement, at least in part, reflects advertisers desire to maintain some kind of presence within a traditional media environment. Yet tinkering with the optimal media mix may serve to obscure some of the more profound changes taking place. New media, especially interactive media, represents far more than just another platform to be integrated into the media mix. The interactive nature of the internet, for example, provides opportunities for real-time, two-way communication, virtual experiences and the capacity to collect rich data about prospects. New media is changing the interface between customers and marketers. It has transformed many aspects of brand marketing – product positioning, distribution, customer relationship management (CRM) and the customer value chain. Perhaps surprisingly, some of the most notable changes are occurring in market segmentation.