Such media holds centre stage in the media plans of all big-spending marketers, just as it captures the attention of most Australians. But ever since consumers’ media consumption habits began to fragment, the importance of mass media has declined along with the level of its consumption.
Specialist magazines, the Internet, SMS, direct marketing, ambient media and email/viral marketing are emerging as significant alternative channels for advertisers to communicate their message.
Even the established mass media is fragmenting, as newspapers sectionalise and add magazines, pay TV dilutes the reach of FTA channels, and digital radio stations operate outside the AM/FM band. Not to mention that all mass media is avaliable, in one form or another, on the Internet.
Such expansion of media is having a serious effect on consumers’ media consumption and advertisers’ media planning. As consumers drift to emerging media, less are consuming mass media, meaning advertisers are under increased pressure to reach the right market: how should they split their media budget between this diverse range of media? And which people are using which media?
Nielsen Media Research MD Peter Cornelius believes there are two driving forces behind the fragmentation of mass media.
“It’s technology introducing new and innovative things to the mainstream, and it’s our lifestyles: we are busier people to varying degrees, but we still require information, so sometimes we go to different places to gain that knowledge, such as the Internet,” he says.
Fusion Strategy MD Steve Allen says the increase in niche media offers almost all advertisers greater opportunities to target their message. However, he says there are some advertisers that will feel the negative impact of fragmentation, particularly such super brands as Coca-Cola.
While niche media such as specialist magazines, pay TV or SMS allow advertisers to connect directly with a targeted audience, super brands that want to reach everybody struggle to get their message through.
“These market conditions don’t suit all advertisers. Advertisers, by and large, are becoming more niche and more specialised,” Allen says.
“The likes of Coca-Cola, where they’re selling to anyone who’s got a mouth, are rare in the marketplace now. These are the ones with the biggest problem [in a fragmented media landscape]. The market conditions don’t suit them. But if you are a specialised marketer with a more discrete target audience, the market conditions can assist you,” Allen adds.
“The thing that’s driving it [fragmentation] now is less time.”
In favour of fragmentation, Allen argues there is value in having highly targeted media streams. He says the age of specialised media offers far greater reach and accountability for every ad dollar spent.
Mitchell & Partners chairman Harold Mitchell says growth in media choices has forced mass media to become efficient, which is a very good thing.
“Look at Network Ten. It said [to advertisers], ‘You need people under 40 and we can give you that and that’s all you pay for. You don’t have to get all the old people, which you would have paid for.’ It’s cutting out the waste. And that’s why niche media has become very popular—you get more value,” Mitchell says.
“The reality is [niche media] has a great level of targeting. With mass media you get what you want, and what you don’t want,” he adds.
Mitchell believes the fragmentation of media will continue, but it will always be in a state of flux as small operators struggle to survive.
“But [niche media] will grow and the strongest will remain, and that is very exciting for the future,” he says.
But Cornelius believes the hubris of niche media players could get them in trouble.
“The reality is there’s advertising everywhere you turn, and a lot of these guys think they’re going to be the next Kerry Packer. They’re enjoying the upside of a buoyant market. Once times toughen, logic says they’ll be the first written off,” Cornelius says.
Advertisers:Mass media down but not out
Newspapers and magazines have lost circulation and even though the trend is not sharp, it is steady. Is it simply that increased choices have diverted consumers away from traditional mass media?
Cornelius says no, he argues that in the example of magazines, even though circulation for particular titles may be falling, overall sales are increasing, as the addition of new titles has grown the market.
And he says mass media is enjoying record profits and increased support from the major advertisers.
“The vast majority of advertisers they still need to reach big numbers. If you’re launching a new grocery brand tomorrow you’re not going to launch it on the Internet, you’re going to launch it with a national TV campaign,” Cornelius says.
