Prompted by the growth of the Internet, media diversification and changes in consumer buying, companies are warming to the power of so-called ¡Ècross-media¡É marketing in their advertising campaigns.
Cross-media marketing is a new concept aimed at multiplying the synergies of advertising by combining diverse types of media. As so-called search engine advertising takes hold, companies are starting to combine the Internet with conventional media to multiply the effects. Ad agencies are striving to differentiate search-engine advertising from the usual ¡Èmedia-mix¡É campaigns.
Japanese newspaper companies aim to work out business strategies that adapt them to the new advertising trend by attracting advertisers to the innate strength of the media.
Dentsu Inc., Japan¡Çs largest ad agency, released annual advertising spending figures for 2005 earlier this year. Each of the four media categories of newspapers, magazines, radio and television suffered year-on-year declines in advertising sales. The share of corporate ad spending on newspapers in the total advertising spending fell to an alarmingly low 17.4 percent.
However, advertising spending on the Internet grew a whopping 55 percent year-on-year. Particularly noteworthy is the fact that spending on search-engine advertising accounted for some 20 percent of total spending in this category. Indeed, search-engine marketing (SEM) is taking hold as an attractive option for advertisers who are increasingly sensitive to cost efficiency in ad spending.
It has long been accepted that advertising through mass media creates a 5-stage cyclical response of (1) drawing buyer attention; (2) generating new interest; (3) stimulating desire; (4) seeding information in memory; and (5) driving real purchasing. Given the rapid changes in the consumer buying process through the Internet, especially noting the popularity of blogs, industry pundits warn that the advertising and media industries will have difficulty convincing advertisers to go with conventional sales approaches.
Ad agencies have tried to sell a ¡Èmedia-mix¡É of a combination of media as a tool to ensure ¡Èreaching¡É target consumers.
But the ¡Ècross-media¡É platform is truly different from the ¡Èmedia-mix¡É formula.
¡ÈThe conventional media-mix platform is aimed at optimizing the quantitative value of each medium, while the cross-media approach is designed to optimize the qualitative value,¡É said an ad agency official.
That means that the issue is not maximizing the ¡Èreach¡É into target markets, but changing the attitudes of individual consumers through information made more attractive via the media. The ¡Ècross-media¡É platform proposes an optimal combination that meets advertisers¡Ç needs -- each medium is required to convince advertisers of qualitative effects, according to the ad agency official.
Ad agencies are taking different approaches in addressing the emerging challenges of the ¡Ècross-media¡É platform. Some have set up cross-media promotion departments to which existing staff are moved to work out a better media combination to maximize the consumers¡Ç purchasing drive. Others have created divisions to support digital media-related business by developing new content and reinforcing Web-site-related business at newspaper companies. Still others are developing and marketing cross-media products or services that combine the Internet with print or other conventional media operated by newspaper companies.
Among newspaper companies, there are growing efforts to master the new field of cross-media advertising. Some attempts are beginning to generate results, thereby raising expectations. Newspaper companies are now working on arranging an effective combination of their daily newspapers with their Web sites, broadcasting services, magazines and other media within their business groups, as well as focusing energy on selling the new combinations to ad buyers.
At the Asahi Shimbun, each business section in the Advertising Division is teaming up with the company's electronic media section to produce a cross-media product. The electronic media section has staff for each business section for closer consultations with salespeople. Where necessary, staff from the Electronic Media and Broadcasting Division take part in sales consultations.
At the Mainichi Shimbun, the Advertising Division works with the Digital Media Division to sell search engine-linked ads. The manager for media strategy -- a position created in the Advertising Division last year -- liaises between the two divisions.
The Sankei Shimbun recently launched a new advertising system, dubbed Nepper (Net & Paper), to integrate newspaper and Web ads. Advertisers¡Ç Web addresses and other information are routinely included in their newspaper ads and in banner ads on the Sankei¡Çs Web site (Sankei Web), drawing people to the Nepper ad site. The ad site contains detailed information on advertisers that could not physically fit into the space available in traditional newspaper or banner ads. This approach feeds the public to the Web sites of the advertisers. Sankei officials say the conversion rate, or the ratio of users accessing advertisers' Web sites through Sankei¡Çs Nepper site is much higher than that for conventional banner ads. The Nepper site is therefore satisfying more advertisers by attracting customers with a real interest in their products and services, the Sankei officials said.
The Nihon Keizai Shimbun (Nikkei) has set up a Net Committee within its Advertising Division that draws in Electronic Media Division staff in an attempt to meet the cross-media challenge. In March, the Nikkei created a Cross-Media Group in the Business Promotion Section of its Advertising Division to develop and sell cross-media ads in cooperation with the Net Committee. The Internet Business Section of its Electronic Media Division is also working with other newspapers, broadcast services and magazines in the Nikkei group.
At the Yomiuri Shimbun, the Advertising Bureau's Media Promotion Division is selling ads for its diverse media beyond the daily newspaper, while promoting cross-media projects with the paper. In March, the Yomiuri set up a Cross-Media Conference task force within its Advertising Bureau to help each division of the Advertising Bureau develop cross-media projects more effectively through tighter integration and information exchange. The newspaper's Digital Media Bureau now has its own permanent Advertising Promotion Committee, and advertising staff from the Web division and the mobile media division work closely with the Advertising Bureau.