Globally, the media industry is undergoing significant change. Technological development is largely driving this change but the industry is also being affected by the impact of globalisation and consolidation of media ownership, the huge growth of the internet, and an increase in non-traditional forms of ambient media such as outdoor, point of sale television, bus and taxi sites.
The New Zealand media is no exception to these trends. New Zealand has a very diverse and fragmented media market with a high number of niche print publications and a large number of radio stations following the deregulation of the industry and the introduction of digital format.
Today's audiences are no longer passively consuming the material marketers give them but are an active player. In fact, the dramatic change in the way audiences now behave has meant many marketing organisations have attempted to redefine their role.
The Chartered Institute of Marketing (CIM) in the UK has defined marketing today as “The strategic function that creates value by stimulating, facilitating and fulfilling customer demand. It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communication benefits.”
Television was once the main domain for advertisers to get across their messages, nevertheless the digital revolution and the advent of technology, such as TiVo, MySKY and YouTube, has given audiences control over what they do and don’t see. To overcome this, other methods of getting a message across are needed such as product placement or mention within the programs themselves.
Although alternative models to the traditional television broadcast advertising have yet to emerge, television networks have embraced online technology and many shows now broadcast online as well as on television. Park Associates estimated that 11.9 million American households will pay for online video content in 2007 highlighting the power of the online market.
The internet helps to promote a company to a global audience. It is also one of the most cost effective ways to build a brand. The interactive nature of online brands allows consumers to feel as though they interacting with the brand and, in a way, have control over the direction the brand is moving in.
In Europe and the United States magazines publishers have a common lament: total circulation is either flat or declining slightly as people devote more time to the internet and an ever greater share of advertising spending goes online.
It is safe to think NZ is experiencing the same environment. Over the past eighteen months we have seen a number of diverse websites launch, catering to different markets, such as:
www.grownups.co.nz (45+ age group),
www.getfrank.co.nz and www.bigfella.co.nz (both targeting males)
www.gdo365.co.nz (targeting females pred youth)
The interactive nature of online brands allows consumers to feel as though they are interacting with the brand and, in a way, have control over the direction the brand is moving in.
This is just the tip of the iceberg as we haven’t touched on the social networking channels such as theFacebook and MySpace phenomenons! That is a whole chapter in itself! The internet continues to evolve and brands need to be optimising it as a key channel of communication.
In terms of print media, New Zealand has one of the highest publications per capita in the world. As with the global trend, a number of the small independent publishers have been bought out by the larger agencies.
It is a fiercely competitive market with everyone aiming to tap into niche audience groups – the more publications being launched within a certain area means the audience share is spread even more thinly and it seems consumers are reading across a number of varying titles.
There is an overriding trend across print publications (especially trade and regional press) for an advertising spend in order to secure editorial inclusion. A number of lifestyle magazines are following this trend including Simply You, NZ Fitness Magazine and so forth.
Communication is not static and the delivery channels are constantly evolving – providing marketers with an ongoing challenge to optimise exposure for their brands.
At spice we work hard to ensure we have the relationships, whether it be with media or IT gurus, to ensure our clients brands are kept informed with opportunities across all marketing channels.