Media Planning & Brand Management

Media Planning & Brand Management Stella Romagnoli Marketing & Digital Communication LUMSA 2019-2020 Lesson 10. Other media: TV, Press, Radio, OOH, Cinema

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 2 Course contents. Section 2: Media Planning

• Owned, paid & earned media • Offline media planning: key metrics • Digital planning: key metrics • Google Ads • Facebook Business • Media scenario: TV, radio, press, Out-of-home, cinema • Media planning process • Media buying • The advertising budget

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 3 Course contents. Section 2: Media Planning

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 4 Television Time spent watching Tv WORLD 03:13

Europe and North America are the most notable areas talking about time spent watching TV. EUROPE 02:41 04:10 Asia stands in the last position. 04:37 ASIA

NORTH AMERICA

03:16

03:33 AFRICA

LATIN AMERICA

Media Planning & Brand Management - LUMSA 2019/20 6 TV audience is concentrated on heavy users (older people)

HEAVY MEDIUM LIGHT

59%

28,8%

. % audience . % 12,2% 7h 27 3h 45 1h 34 comp HEAVY MEDIUM LIGHT Average age 62 50 42 Education level Low-MediumΔ Medium High-Medium Δ audience -1,4% -2,7% -7,4% vs. ‘14 Δ reach% -0,8% -1,5% -4,2% vs. ‘14

SOURCE: elaboration GroupM on Auditel data- year 2015

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 7 Traditional TV is still the most viewed

Source: Prima Comunicazione - Rapporto Censis sulla Comunicazione 12/ 10/2018

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 8 Thematic channels distribution

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 9 Video Eco-System is changing

FROM TO BROADCASTER TV BROADBAND TV

v TV Set v Digital devices (PC, Smart TV, Tablet, Smartphone) v Broadcast viewing v Streamed/Downloaded viewing v Programme Schedule v Broken Programme Schedule

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 10 VOD: Video On Demand SVOD: Subscription Video On demand VOD: Video On Demand SVOD: Subscription Video On demand

VOD SVOD

v Free service v Pay service v Business model: advertising v Business model: mainly subscription v Streaming live + Re-video of v Access “open” to all the library contents

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 12 There are lots of alternative to free generalist TV

Pay TV Free linear TV (linear and on demand) Subscription video on demand Streaming

Fonte: Osservatorio EY sull’evoluzione dei contenuti e dei video online.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 13 Despite the fragmented television universe, generalist channels still get about 60% share.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 14 Importance of being generalist Especially during peak times (13:00 and 20:00)

2004 2005 2006 2007 2008 2009 2010 2011 Despite the fragmented television universe, generalist 100% channels still get about 60% 90% share. 80%

70% TV peak Time: 60% 8-9 am around noon 50% 8-9 pm share% 40% Evening Prime Time 30%

20%

10%

0% 07:00 07:23 07:46 08:09 08:32 08:55 09:18 09:41 10:04 10:27 10:50 11:13 11:36 11:59 12:22 12:45 13:08 13:31 13:54 14:17 14:40 15:03 15:26 15:49 16:12 16:35 16:58 17:21 17:44 18:07 18:30 18:53 19:16 19:39 20:02 20:25 20:48 21:11 21:34 21:57 22:20 22:43 23:06 23:29 23:52 24:15 24:38 25:01 25:24 25:47

Media Planning & Brand Management - LUMSA 2019/20

15 SKY subscribers in Italy are essentially stable since 2008

Sky subscribers (.000)

6.000

5.000

4.000

3.000 4.700 4.695 4.676 4.667 4.502 4.491 4.494

2.000 4.392 4.328 4.324 4.220 3.940

1.000

0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 16 While Netflix keeps on growing (more than 2 million subscribers)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 17 •This fragmented situation is a nightmare for media planners…

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 18 Let’s see how to plan advertising on TV

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 19 Knowing each media

To effectively planning media we have to know: 1. Potential reach of (and frequency on) our target audience 2. How audence is measured, and if these surveys are reliable 3. Expressive capability 4. Technical Constrains 5. Cost (and who sell the media vehicles - dealers)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 20 Knowing each media

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 21 In Italy there’s Auditel

• Instead of measure households audience, Auditel measure individuals’ behaviour

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 22 Auditel

• 30.540 meter AGB in 16.100 households • Every member of the family has a dedicated button in the meter’s remote (there’s also a button for hosts) • Audience is tracked every 60’’: so we can estimate our ad audience (the advertising break, not only the TV program’s audience)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 23 Auditel data

AM: audience: gross impressios SH: share% PE: penetration% (reach%)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 24 During advertising break audience drops

20.000.000

19.000.000 Ascolti minuto per minuto prima puntata 2007 18.000.000

17.000.000

16.000.000

15.000.000

14.000.000 13.000.000 Curva con i break pubblicitari (caduta di audience) 12.000.000

11.000.000

10.000.000

9.000.000

8.000.000

7.000.000

6.000.000 21.53: 5.000.000 Break 22.20: 1° Tic Tac (farf.) Break 4.000.000 2° Lidl 1° Wind (farf.) 2° Bravo 3.000.000

2.000.000

1.000.000 2007 0 21:10 21:15 21:20 21:25 21:30 21:35 21:40 21:45 21:50 21:55 22:00 22:05 22:10 22:15 22:20 22:25 22:30 22:35 22:40 22:45 22:50 22:55 23:00 23:05 23:10 23:15 23:20 23:25 23:30 23:35 23:40 23:45 23:50 23:55 00:00 00:05 00:10 00:15 00:20 00:25 00:30 00:35 00:40 00:45 00:50 00:55 01:00 01:05 01:10 01:15 01:20 01:25 01:30 01:35 01:40 01:45 01:50 01:55 02:00

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 25 Audience during the day

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 26 Mainstream TV channels have millions of viewers

Rocco Schiavone RAI1

Amici Celebrities Canale5

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 27 Satellite TV

Look at the scale

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 28 Knowing each media

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 29 Television advertising is very effective

• The most obvious advantage of television advertising is the opportunity to use sight, sound, color and motion in commercials. • We can create emotional commercial, make product demo, or show people in situations in which they can identify • But we must remember to say one thing at the time (Unique Selling Proposition) • Drawbacks: high cost, limited exposure time, cluttered airways and poor placement of ads within or between programs

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 30 Who sells TV in Italy

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 31 Media owners scenario Top 5 Jan-Dec18 2017: SoS Jan-Dec18 (investments .000) Publitalia (media owner of DIGITALIA Mediaset channels) is the 08 3%PRS 1% market leader: it collects more CAIRO 4% than 54% of total investments. DISCOVERY 2.095.768 6%

Rai with 19% of SoS is in second 709.138 place and precedes sky (13%). SKY MEDIA 13% PUBLITALIA Discovery Media has seen the 498.889 RAI 55% most significant growth PUBBLICITA overcoming Cairo. ' 19% 230.282

166.936

Media Planning & Brand Management - LUMSA 2019/20

32 Publitalia TV offer

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 33 Publitalia price-lists

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 34 We can download the price list we are looking for

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 35 Prices for a 30” commercial

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 36 Do you think that a 15’’ commercial costs half the price of a 30’’?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 37 It is not so…

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 38 Price list per lenght of time

LENGHT: PRICE: • 60” (costa x 2,5 il 30”) • 45” (1,70) • 40” (1,4) • 30” • 20” (0,80) • 15” (0,70) • 7”- 10” (0,60)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 39 15’’ cost 70% of a 30’’

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 40 So if a 30’’ on TG5 costs 80.000€ 15’’ costs 56.000€

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 41 Other TV formats

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 42 TV Scheduling patterns

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 45 Scheduling Patterns

1. CONTINUITY SCHEDULING: advertising is scheduled evenly through the year. E.g. 200 GRP’s per month x 12 months. – Low frequency but coverage of the entire purchase cycle. – It’s difficult to create awareness and break through the clutter

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 46 Scheduling Patterns: the more used approach

2. FLIGHTING (OR BURSTING): advertising is scheduled alternating periods of onair with periods of silence. – E.g. 500 GRP’s in 2 weeks, then off 2 weeks, then on again with 500 GRp’s an so on – It is more likely to break through the clutter and create awareness, because of the higher frequency – It’s an effective frequency approach, – But no advertising between flights, so competitors could be on

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 47 Scheduling Patterns

3. PULSING: it combines the principles of both continuity and flighting. The heavy periods are strong enough to break through the clutter, while the steady lower levels help to prevent the memory decay, that could occur when there’s no advertising at all. – Product categories that are sold all year round but experience a surge in seasonal or holiday sales are good candidates for pulsing. – This strategy could be very expensive…

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 48 We schedule GRP’s (TRP’s)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 49 TV advertising is measured in GRP’s

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 50 Press

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 51 Expressive capability

Newspapers and magazines could be your father’s ad medium, but they still have lots of advantages 1. They are targeted. Newspapers have a specific geographical coverage, magazines target almost every conceivable consumer or business market/audience – from music or auto or wine enthusiasts… 2. It is possible to explain products or service in detail

The most important drawback is that press audiences are declining

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 52 How do we measure press audience?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 53 In Italy we have ADS and Audipress

• ADS certificates circulation • While Audipress is a survey that measures readership

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 54 ADS

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 55 www.adsnotizie.it

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 56 E.g. Il Messaggero circulation data

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 57 Newspaper are geographically targeted

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 58 Top 20 Newspapers for Var. % vs. circulation 2017 CORRIERE DELLA… 76% 286.070 -4% LA REPUBBLICA 79% 212.273 -4% IL SOLE 24 ORE 48% 167.648 -5% LA GAZZETTA SPORT 94% 166.401 -7% Corriere delle Sera is the first LA STAMPA 84% 154.822 -9% newspaper, followed by La AVVENIRE 90% 111.948 1% Repubblica and Il Sole 24 Ore. National IL MESSAGGERO 89% 100.123 -8% IL RESTO DEL… 98% 94.263 -6% CORRIERE SPORT 98% 77.612 -16% Sport LA NAZIONE 98% 68.699 -7% IL GAZZETTINO 82% 56.987 -4% Capizona IL GIORNALE 97% 55.191 -10% TUTTOSPORT 97% 50.632 -12% Others IL FATTO QUOTIDIANO 74% 47.089 3% IL GIORNO 99% 45.823 0% L' UNIONE SARDA 82% 42.794 -5% DOLOMITEN 93%41.602 -3% IL SECOLO XIX 95%41.201 -7% ME SSAGGERO… 95%39.194 -4% IL TIRRENO 96% 36.989 Digital… -10%

Media Planning & Brand Management - LUMSA 2019/20

59 Top 20 weekly for Var. % vs. circulation 2017 - SO RRISI E CANZO NI TV 92% 523.507 6%- SETTI MANALE DIPIU' 100% 427.231 6%- TELESETTE 100% 350.694 5%- IL VENERDI' DI… 84% 280.859 2% TV Sorrisi e canzoni is the first IO DONNA 76% 280.410 -2% - weekly pubblication, followed Family OGGI 83% 277.512 1% 23 VANI TY FAI R 41% 262.574 by Settimanale Dipiù and % Women’s Telesette. GENTE 83% 248.066 1% magazines - FAMIGLIA CRISTIANA 100% 245.440 9%- L'ES PRESS O 98% 242.910 Tv guides 11- % DIPIU' TV 100% 218.282 11 - SETTI MANALE NUO VO 100% 210.135 % Newness 1% ELLE 65% 207.123 0% - D LA REPUBBLICA… 77% 192.758 - Sport 1% DONNA MODERNA 81% 186.830 12 - CHI 89% 178.538 % 6% DIVA E DONNA 100% 173.166 2% - SPORT WEEK 94% 171.623 6%- GRAZIA 80% 162.145 1%- INTIMITA' 100% 153.895 Digital… 7%

Media Planning & Brand Management - LUMSA 2019/20

60 Top 20 monthly Var. % vs. for circulation 2017 ALTRO CO NSUMO… 100% 356.151 -4% 50 & PIU' il valore… 100% 286.754 1% AL VO LANTE 96% 263.565 -7% Furniture FOCUS 75% 248.389 -13% Altroconsumo is the first QUATTRORUOTE 78% 206.764 -11% monthly press, followed by 50 Auto TOURING-Il nostro… 100% 188.636 2% & Più il valore dell’esperienza COSE DI CASA 98% 180.378 -12% Cooking and Al Volante ELLE 60% 174.413 15% CUCINA MODERNA 88% 152.460 -18% Feminine MARIE CLAIRE 59% 151.910 18% GLAMOUR 71% 147.959 -7% Youth LA CUCI NA ITALIANA 27% 144.594 96% CASA FACILE 91% 141.149 -13% Nature IO E IL MIO BAMBINO 97% 133.650 -19% SI LHOUETTE DONNA 100% 129.843 -9% Travel COSMOPOLITAN 59% 120.144 6% GIALLO ZAFFERANO 93% 119.210 -40% Others FOCUS JUNIOR 69% 105.579 -10% VO GUE ITALIA 58% 104.436 17% AMICA 96% 93.421 Digital… -8%

Media Planning & Brand Management - LUMSA 2019/20

61 Audipress

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 62 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 63 Audipress survey

• Audipress provides reading data and information on readers for major newspapers and magazines in Italy. • Every year about 40,000 personal interviews are conducted on a sample of the Italian adult population (14 years and over) + a single source panel from 1 January 2017 of 16,000 people. • Data is published three times a year: in February, May and September.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 64 They show the names of the publications and ask you if you remember to have read them…

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 65 Mmmh Are these data reliable?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 66 More than 3 million readers?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 67 These data are suspicious… more than 10 readers each day?

Principali quotidiani italiani in ordine di LETTURA Audipress 2018/II Vs. DIFUSIONE ADS 9/18

0 500.000 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 3.500.000

GAZZETTA SPORT-LUNEDI (LA)

CORRIERE DELLA SERA

REPUBBLICA (LA)

CORRIERE SPORT-STADIO LUN.

MESSAGGERO (IL)

STAMPA (LA)

QN-Il Resto del Carlino

TUTTOSPORT LUNEDI'

TUTTOSPORT

SOLE 24 ORE (IL)

QN-La Nazione

GAZZETTINO (IL)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 68 Press readership is decreasing in Italy

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 69 Why? Don’t we read anymore?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 70 It’s not that people don’t read news…they read it on social networks

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 71 But publishers do not gain money from advertising…

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 72 Advertising investments - Newspapers

2.500

2.000 2.010 1.908 1.895 1.808 1.771 1.770 1.728 1.724 1.720

1.500 1.688 1.527 1.505 1.455 1.363 1.362 € (.000)

1.000 1.239 1.172 1.157 1.116 1.101 1.098

1.090 -7,7% vs. 1.046

916 2016 898 809 803 743 691 687

500 638 560 444 374 325 114 97 80 263 55 62 225 42 43 44 47 185 0 138 1970 1971 1972 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Fonte: UPA-Nielsen Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 74 Planning & buying advertising on the press

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 75 Who sells the press in Italy?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 76 Newspapers: weight of media owner

SoS Jan-Dec18 Top 5 Jan-Dec18 2017: (investments .000) OTHERS 1% OPQ 1%

CLASS The Top 5 dealerships collect PUBB… 24 ORE… 90.778 89% of investment in SPORT Newspaper. NETWORK RCS 9% PUBBL.… 65.410 RCS industry leader with 29% of SoS in 2016 was acquired by SPEED 42.814 Cairo. 11%

Manzoni and Piemme are in MANZO 32.020 NI 22% second and third place. PIEMME 15% 24.761

Media Planning & Brand Management - LUMSA 2019/20

77 Magazines: weight of media owner

SoS Jan-Dec18 Top 5 Jan-Dec18 (investments .000) 2017:

The 5 largest dealerships OTHERS 77.747 collect 78% of investments. 13% CAIRO PUBBL. 22% MANZONI 67.960 8% Cairo, the market leader, after CONDE'NAS the acquisition of RCS reaches a T 11% 49.274 20% share surpassing MEDIAMON D 19% Mediamond. HEARST 46.682 MAGAZINE 13% RCS PUBBL. 14% Mediamond and Hearst divide 39.890 about 33% of the market.

Media Planning & Brand Management - LUMSA 2019/20

78 Advertising formats on the press

• Press formats are very flexible, especially ones in newspapers • On magazines we usually buy pages, double pages or half pages.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 79 RCS Pubblicità

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 80 rcspubblicita.it

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 81 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 82 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 83 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 84 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 85 We can buy also the digital edition

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 86 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 87 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 88 Cairo

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 89 www.cairocommunication.it

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 90 Di Più Magazine

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 91 Print scheduling strategies

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 92 Scheduling strategy

• We need to plan a lot of frequency. Newspapers are cluttered and magazines are read once in a while. • It is difficult to create awareness in a very short time • Therefore the more used patterns are: – flighting for newspaper – Continuity for magazines

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 93 RADIO

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 94 Creative impact

• Radio offers great opportunities to create theatre of the mind. It creates imagery (with little production costs…) • Although it does not offer the visual power of television, it helps reminding TV commercial (imagery transfer) and it is very useful in combination with TV planning. • It is a very cluttered medium, and commercials must be very impactful to be noticed, and we have to plan with a lot of frequency (but, compared to TV, it is not an expensive medium)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 95 Radio in media mix increases advertising recall (2014)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 96 https://clios.com/awards/winn er/29495 A Gold Lion Radio Campaign By McCann

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 97 Radio audience

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 98 www.tavoloeditoriradio.it Radio TER survey

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 99 Radio TER (GFK + IPSOS)

• 120.000 interviews by phone and they ask: – If people remember to have listened (and where) to a specific radio station during the previous day, week, etc. (choosing from a list: it’s aided recall)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 100 Radio is mostly listened in the car

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 101 Radio audience: Where do we listen to the radio? daily trend. 43%

17% Car is still radio’s best friend. 13% 5,5% 10% 4,4% 3,8% 3,3% 3,0% Audience peak is during drive 9,3% 1,4% 0,7% time. When I'm At home At home At work At home While In public Other On public With At home At school driving while during while using places situations transport friends while doing relaxing preparing internet studying some work moment myself

Daily trend

lun-ven 14.000 12.000 10.000 8.000 6.000 4.000 AQH (.000) 2.000 0

06:00-06:1506:30-06:4507:00-07:1507:30-07:4508:00-08:1508:30-08:4509:00-09:1509:30-09:4510:00-10:1510:30-10:4511:00-11:1511:30-11:4512:00-12:1512:30-12:4513:00-13:1513:30-13:4514:00-14:1514:30-14:4515:00-15:1515:30-15:4516:00-16:1516:30-16:4517:00-17:1517:30-17:4518:00-18:1518:30-18:4519:00-19:1519:30-19:4520:00-20:1520:30-20:4521:00-21:1521:30-21:4522:00-22:1522:30-22:4523:00-23:1523:30-23:45

Media Planning & Brand Management - LUMSA 2019/20

102 Radio fruition

Everywhere Only in the but not in the CAR car 27% of the radio users state they listen to it at home and 22% while driving in their car: this 21% Of wich only at 10% way of listening is the most home common and represents the In the car and clubs and shops 21% of the out-of-home In the car, at 5% approach to this medium. clubs and at work 8% 17% 27%

In the car and at work

In the car and at home

Media Planning & Brand Management - LUMSA 2019/20 103 The national offer: the best radios The best radios

Monthly av. Radio Deejay is the first radio Via Web Local A.Q.H. Via Etere A.Q.H. listeners followed on web

(1,2 mio listeners per month). RTL 102.5 666.000 Radio Deejay 1.260.000 Radio Subasio 150.000

A huge gap separates this Radio 105 528.000 RDS 558.000 Radio Sportiva 68.000 network from the second one in the ranking (RDS 926k RDS 483.000 Radio 105 674.000 Radio Italia anni 60 66.000 listeners). Radio Deejay 474.000 Radio Italia 545.000 Radio Bruno 64.000

Radio Italia 410.000 RTL 102.5 343.000 Radionorba 64.000

Media Planning & Brand Management - LUMSA 2019/20

104 listeners average day Ranking radio: - Management Brand & Planning Media LUMSA 2019/20LUMSA 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 500 0 0 Individuals 14+ Individuals

RTL 102.5 Adults RTL102.5 4.223 7.559 25-

RDS RDS RADIO DEEJAY

3.642 54 5.641 DEEJAY RADIO 3.477 5.160 RADIO 105 RADIO ITALIA RADIO ITALIA 3.287 5.148 RADIO 105 VIRGIN RADIO 2.807 4.744 RADIO 1 RAI RADIO KISS KISS 1.813 3.784 KISS KISS RADIO RAI RADIOUNO 1.695 2.917 RADIO 2 RAI RAI RADIODUE 1.328 2.670 VIRGIN RADIO 1.124 2.566 RADIO 24 RADIO 24 1.120 2.197

R101 R101 1.107 2.060

M2O M2O RADIO CAPITAL 1.005 1.598 CAPITAL RADIO 901 1.554

RMC RMC RADIO FRECCIA 701 1.375 RADIO 3 RAI 105 RAI RADIOTRE 683 1.275 FRECCIA RADIO

RADIO ZETA 395 990 RADIO ZETA 276 679 Spotify in Italy

Type of account Usage per market*

Free Premium

5% 50 % 95

% 43% 50 25% % 23% 9% 20% 9% 17% 17% 16% 16% 8% 8% 7% 7% 15% 12% 15% 15% 15% 12% 12%

WORLD ITALY UK USA Italy Spain Brasil China Mexico Ireland Turkey CanadaPolland Sweeden Portugal Gemany Belgium AustraliaMalaysia Philippines Argentina Singapore Netherlands

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 106 Planning & buying advertising on radio

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 107 Who sells the radio advertising in Italy?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 108 Media sellers and radio stations

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 109 Radio: media owner of national channel SoS Jan-Dec18 Top 5 Jan-Dec18 (investments .000) 2017: 24 ORE SYSTEM 5%

Mediamond is in first place with OPENSPACE 115.230 a 29% of market share. 9% MANZONI RDS 29% 102.315 ADVERTISI NG 12% 75.750 RAI PUBBLICITA ' 19% 45.117 MEDIAMON D 26% 33.699

Media Planning & Brand Management - LUMSA 2019/20

110 What do we buy?

• Mostly 30’’ (or 15’’) Commercials • Ultrapromotions • 60’’ “advertorials”

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 111 We usually buy packages of 6-8 or more commercials per day (not 1 at the time…)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 112 You don’t find prices on the web

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 113 Radio RAI price list

OFFERTA CROSSMEDIALE CONTENT - AUTUNNO 2019 (dall'8/9 al 21/12) LISTINO TABELLARE

Giorni di

Mezzo Rete Rubriche di vendita Programma Orario Indicativo Tariffe LUNEDI GIOVEDI SABATO MARTEDI VENERDI DOMENICA MERCOLEDI

RADIO Note TABELLARE 30" 8/9-28/9 29/9-2/11 3/11-30/11 1/12-21/12

RADIO RAI RADIO1 Prime time 1 GR1 - Ondaverde - Radio anch'io 6:30/9:30 • • • • • • • 4.900,00 4.900,00 4.900,00 4.900,00 RADIO RAI RADIO1 Rush time 1 Mangiafuoco - GR1 - Zapping 17:00/19:30 • • • • • 2.600,00 2.600,00 2.600,00 2.600,00 RADIO RAI RADIO1 Sport time 1 GR1 Sport - Partite 12:30/21:45 • • • • • • • 3.000,00 3.000,00 3.000,00 3.000,00 RADIO RAI RADIO1 News time 1 GR1 - Ondaverde - Un giorno da pecora - Coltivando il futuro 10:00/17:00 • • • • • • • 2.100,00 2.100,00 2.100,00 2.100,00 RADIO RAI RADIO2 Prime time 2 Caterpillar am - Ruggito 6:30/10:30 • • • • • • • 4.700,00 4.700,00 4.700,00 4.700,00 RADIO RAI RADIO2 Rush time 2 Numeri uni - 610 - Caterpillar - Decanter - Pascal 17:00/20:00 • • • • • • • 2.300,00 2.300,00 2.300,00 2.300,00 RADIO RAI RADIO2 Show time 2 Radio 2 social club - Non e' un paese… 10:00/13:45 • • • • • • • 2.300,00 2.300,00 2.300,00 2.300,00 RADIO RAI RADIO2 Music time 2 La versione delle due - Numeri uni 14:00/19:00 • • • • • • • 1.600,00 1.600,00 1.600,00 1.600,00 RADIO RAI RADIO3 Prime time 3 Prima pagina - GR3 7:15/9:00 • • • • • • • 2.400,00 2.400,00 2.400,00 2.400,00 RADIO RAI RADIO3 Culture time 3 Fahrenheit - Ad alta voce 16:40/17:00 • • • • • 2.000,00 2.000,00 2.000,00 2.000,00 RADIO RAI RADIO1 FullRADIO2 prime RADIO3 time 3 passaggi uno per emittenteGR1 - Ondaverde - Radio anch'io - Caterpillar am - Ruggito - Prima pagina GR3 6:30/10:30 • • • • • • • 10.200,00 10.200,00 10.200,00 10.200,00 RADIO RAI RADIO1 Full time 1 GR1 - Ondaverde - Un giorno da pecora - Sport 6:30/21:45 • • • • • • • 2.500,00 2.500,00 2.500,00 2.500,00 RADIO RAI RADIO2 Full time 2 Caterpillar am - R2 Social club - Numeri uni - 610 - Caterpillar - Decanter 6:30/20:00 • • • • • • • 2.300,00 2.300,00 2.300,00 2.300,00

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 114 Out OOH of Home

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 115 What is OOH?

• For Out of Home we mean everything that’s out of our house: billboards, but also video, ambient advertising, etc.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 116 the major categories of outdoor advertising

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 117 Outdoor advertising

1. Posters (30-sheet posters and 8-sheet posters) – 30-Sheet outdoor advertising poster is the standard size static, vinyl, or digital billboard poster format, typically measuring 12'3" x 24’6” (U.S.) – Could be also illuminated. – They are excellent for market coverage, name recognition, and message or product reinforcement – In Italy you can plan them for 14 consecutive days (there is a specific calendar)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 118 Billboards

2. Billboards may be rotaries, permanent bulletins, or spectaculars. – They are one of the largest outdoor format with a standard size in U.S. of 14 feet high by 48 feet wide. – Usually illuminated, they are most often seen on freeways – They present excellent visibility and could be extremely impactful

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 119 3. Digital Out Of Home 3’02’’

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 120 3. Digital (DOOH)

• Through the DOOH and mobile integration Companies will be able to communicate where and when it is most relevant to each target. • The influence of media as DOOH and Mobile is increasingly important when creating effective call to action “in the last mile”.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 121 Outdoor advertising generates online search

In US 45% of people who saw OOH ads, activate online search

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 122 Tesco. Advertising as point of sale 2’26’’

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 123 Digital billboards are updated electronically, and it’s possible to change ads depending on time or weather 1’16’’

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 124 British Airways

27’’ Street Furniture

4. Street furniture encompass benches, shelters and phone booth, to engage clients physically

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 126 5. Transit

• Bus, train, transit , railway station and airport advertising reaches commuters as they wait or ride.

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 127 6. Wraps

• There are also taxi and bus wraps, wrapped cars, inside of buses and trains • building wraps • The number of creative idea using outdoor is amazing…

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 128 Expressive capability

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 129 OOH it’s a “glance medium”. An outdoor board may be exposed for less than a second. Only a short, simple, visually dominand message can be communicated

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 130 But it’s is perhaps the most geographically flexible mass medium available

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 131 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 132 How to measure Outdoor audience?

• There are specific surveys and the Audioutdoor Research, but more simply we measure the population living in the cities • 50% coverage of the Italian population is given by 26 cities.

10 cities 37%

5 cities 30%

2 cities 17%

1 cities 9%

Italy

Source: OMG elaboration

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 133 How to plan and buy OOH

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 134 OOH Advertising Invesments

• In Italy traditional transit (posters) is the most used format Share of Spending per formati

Gen-Giu 2018

10%

TRANSIT TRADIZIONALE TRANSIT DIGITALE 48% ARREDO URBANO MEDI E GRANDI FORMATI GO TV 20% ALTRO 13%

Source: OMG elaboration

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 135 How to plan and buy OOH

• Posters are sold for 14 days following a specific schedule

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 136 How to buy OOH

• Traditional transit and posters are bought in “packages”, called circuits. • Other format can be bought separately, depending on the seller’s policy • Main media owners that operates in Italy are IGP Decaux, Clear Channel, IPAS

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 137 Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 138 Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 139 Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 140 Cinema

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 141 Expressive capability

• This the medium with the highest expressive quality: impactful image, sound (hi-fi), few distractions… • The problem is that few people go to movie theaters and they do it very rarely • It’s the perfect medium to create emotions (but we cannot explain every detail of the product)

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 142 How do we measure audience?

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 143 By sold tickets

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 144 Top 20 movies seen on October 2019

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 145 Viewers per year

10,3% 7,5% 9,4% 5,1% 120.000.000 -4,0% -0,4% -8,2% -9,8% -6,9% -12,2% -6,7% 0,0%

100.000.000 -500,0%

80.000.000 -1000,0% 109.235.819 104.071.133 103.617.517 99.427.152 99.061.573 98.983.395 97.197.279 60.000.000 100.242.458 -1500,0% 91.390.356 90.510.980 90.430.833 85.291.359 40.000.000 -2000,0%

20.000.000 -2500,0%

0 -3000,0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: OMG elaboration

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 146 Viewers profile (young and with degree)

178 160 152 140

119 109 104 102 98 100

Male Female 14-17 y.o. 18-24 y.o. 25-34 y.o. 35-44 y.o. 45-54 y.o. 55-64 y.o. over 65 Primary Secondary High school Degreee school school

Source: OMG elaboration

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 147 Viewers per month

2013 2014 2015 2016 2017 2018 25.000.000

20.000.000

15.000.000 15.885.363 14.283.263

10.000.000 10.082.298 10.065.215 9.443.955 9.204.564 8.983.385 8.988.364 8.764.829 8.286.056

5.000.000 4.830.123 4.693.512 4.013.306 7.658.266 7.297.340 7.043.713 7.035.673 6.847.890 3.342.023 3.325.812 3.414.686 6.746.954 3.672.714 2.760.572

0 Jan. Feb. Mar. Apr. May. June July Augu. Sept. Oct. Nov. Dec.

Source: OMG elaboration

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 148 Only 5% of the Italian population goes to movie theatre every week…

In the last 3 months In the last 30 days In the last 7 days 24,9% 12,3% 5,0% (tot. population) (tot. population) (tot. population) 4,8% 19,3% 2,5% 19,9% 1,1% 22,3% Traditional cinema Traditional cinema Traditional cinema 20,1% 80,7% 10,2% 80,1% 3,9% 77,7% Multiplex cinema Multiplex cinema Multiplex cinema

% calculated on tot. pop. % calculated on movie viewers

SOURCE: GroupM elaboration on TSSP data (Total 2014)

Media Planning & Brand ManagementStella -RomagnoliLUMSA 2019/20 149 How to plan and buy Cinema advertising

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 150 What we buy

• As for television, we buy video commercials (30", 60" etc.) • Usually we buy a circuits of theatre for a certain period of time (some dealers now offers the possibility of following a movie) • We can also buy other communication tools: BTL, special events, decorations, etc. • Main dealers in Italy are: RAI Pubblicità, Moviemedia and DCA

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 151 Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 152 Thank you Sources: The media handbook - Helen Katz – 2017 Media planning & buying in the 21st century – Ronald Geskey – 2017

Media Planning & Brand Management - LUMSA 2019/20 Stella Romagnoli 153