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Advertisers Evolve to Multimedia



                      to reach broad national audiences and radio and billboards for local
                      markets. Because audiences were big, using targeted media was not an
                      issue for many products. As video games, cable TV, VCRs, CDs, and
                      the Web gave people other entertainment and information options,
                      companies began to integrate their marketing efforts and use a multi-
                      media approach to advertising. Unlike the one-size-fits-all approach of
                      mass media marketing, multimedia advertising targets users based on
                      their lifestyles and choices of media. It gives marketers better control
                      of the reach of their ad messages and guards against ad burnout. Best
                      of all, it uses various media as building blocks to surround users with
                      the media they choose to use in their daily lives.
                         Multimedia advertising creates a media multiplier effect that often
                      adds synergy to a campaign. People see or hear messages about a prod-
                      uct in multiple places—on the radio, the Internet, at the ballpark, in
                      the mall, on cable TV, and on a cell phone. This integrated multichan-
                      nel approach gives an ad campaign “lift” or added awareness with its
                      target audience.
                         How people use media is changing as digital technologies give peo-
                      ple more options. A study in 2003 by researchers from the Center                 177
                      for Media Design at Ball State University (http://www.bsu.edu/cmd)
                      found that 39 percent of TV watchers also use the computer at the
                      same time. This trend toward simultaneous media usage is supported
                      by other research that shows people often use two media at once.
                         The evolution to multimedia advertising in the past decade has
                      been slow because the advertising media industry is so entrenched in
                      the TV-centric mass media model. It wasn’t until several large global
                      advertisers began to shift money away from mass media to targeted
                      micromedia that the ad industry began to take notice.
                         The shift began when P&G, the world’s largest advertiser,
                      announced in 2001 that it was moving $300 million of its $1.5 billion
                      U.S. media budget to do a cross-platform deal with media conglomer-
                      ate Viacom. The deal included advertising in Viacom’s TV networks,
                      CBS and UPN; eight cable channels; syndicated TV (think shows
                      like Seinfeld reruns and Wheel of Fortune); and nonmedia promotions
                      and sponsorships. Since then, many major advertisers have pulled
                      money out of TV and announced cross-platform, multimedia cam-
                      paigns. Recently, the Mitsubishi Motor Company pulled all of its
                      prime-time network TV ads—$120 million worth—because of high
                      prices and smaller audiences. An American Advertising Federation sur-
                      vey found that advertisers allocated 8.35 percent of their budgets for
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