INTERNATIONAL ADVERTISING SURVEY IAA FEBRUARY 2007

2 The IAA Italian Chapter, in collaboration with Nextplora, conducted a Survey on the Advertising / Media Market Development. The main information areas of the survey were as follows:  Impact of digital marketing and online advertising on the media mix –Rebalancing the marketing mix: new tools on stage?  Content mobile: new perspectives –Will the new media bring new money to the advertising market or will they grab market share from the old ones?  Media and technologies: new training’s needs –The usage of the new technologies in the advertising needs to specific skills. Informative goals

3 Methodology  Methodology : Self-completed online questionnaire with C.A.W.I. methodology, based on Nextplora Dynamic Survey System, an proprietary platform ideal to create dynamic questionnaires and conduct C.A.W.I. fieldworks.  Survey technique : self-completion online questionnaire and data acquirement via C.A.W.I. using Nextplora Dynamic Survey System.  The questionnaire can be structured with:  Dynamic filters  Closed and open-ended questions  Sample: sample of 421 cases, representative of the worldwide Internet population.  Field : From 13th December 2006 to 23th February 2007.

MARKET VISION

5 PERCEIVED INNOVATION Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Top two: 49% Top two: 30% Top two: 62% Top two: 34% Top two: 28% Top two: 85% Top two: 84% Internet, online adv, search engine and new media in general obtain the highest degree of perceived innovation

6 PERCEIVED INNOVATION – TELEVISION - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 49% Top two: 33% Top two: 52% Top two: 47% Top two: 66% Top two: 72% * Not much cases: qualitative information

7 PERCEIVED INNOVATION – RADIO - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 30% Top two: 31% Top two: 38% Top two: 52% * Not much cases: qualitative information

8 PERCEIVED INNOVATION – OUTDOOR / POSTER - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 62% Top two: 69% Top two: 79% Top two: 67% Top two: 58% Top two: 65% Top two: 72% * Not much cases: qualitative information

9 PERCEIVED INNOVATION – PRESS - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 34% Top two: 33% Top two: 38% Top two: 43% Top two: 33% Top two: 34% * Not much cases: qualitative information

10 PERCEIVED INNOVATION – CINEMA - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 28% Top two: 27% Top two: 31% Top two: 33% Top two: 16% Top two: 23% Top two: 28% * Not much cases: qualitative information

11 PERCEIVED INNOVATION – INTERNET / ONLINE - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 85% Top two: 92% Top two: 87% Top two: 67% Top two: 58% Top two: 96% Top two: 93% * Not much cases: qualitative information

12 PERCEIVED INNOVATION – NEW MEDIA - Please rank the degree of your personal “perceived innovation” of each of the following media using a scale where 5=Highly innovative / 4=Innovative/ 3=Stable / 2=Low innovative/ 1=Very low innovative Casi n.12 (*) (*) Top two: 84% Top two: 90% Top two: 93% Top two: 67% Top two: 67% Top two: 91% Top two: 93% * Not much cases: qualitative information

13 PROJECTIONS ON ADV MEDIA INVESTMENTS – WITHIN 1 / 2 / 3 / 5 YEAR - Based on your experience and market view, please give your best estimated projection on advertising investments in the following media. Please use a scale where 5=High Increase / 4=Low Increase / 3=Flat / 2=Low decrease / 1=High decrease Internet, online adv, search engine and new media in general, will rise above the other media in adv investments in the next 5 years

14 MEDIA ADV SHARE 1 YEAR / 3 YEARS / % YEARS Based on your experience and market view, please rank the following media according to their advertising share in 3 / 5 / 10 years. Please use number only. Each columns must sum up to 100% Television will show the highest share in the next 5 years. A good position is obtained also by press

NEW MEDIA ADVERTISING

16 PROJECTIONS ON NEW MEDIA EVOLUTION How much do you agree with the following sentences? Answer using a scale where 5=I strongly agree, 4=I agree, 3= I don’t agree neither I disagree, 2= I disagree, 1= I strongly disagree General agreements about Adv on IpTv and mobile phone as additional to traditional tv, and about the possibility that the consumer will permit to receive adv msg via sms/mms in order to access to free digital content Top two: 72% Top two: 63% Top two: 60% Top two: 52% Top two: 70%

17 MEDIA IMPACT IN THE 3 YEARS TIME Could you rank the following media in terms of their impact in 3 years time? Please use a five scale from 5 to 1 where 5=Most important and 1=Less important The results show that Pay Per View Tv, more than the other media, will have a strong impact on adv revenues generated but also in audience and consumer favourability.

18 ADV BREAK OVERALL LIKING BY THE EDITORIAL CONTENTS AND MEDIA How would you rate consumer will like the following advertising break into the editorial contents on the following media? Please use a five scale from 5 to 1 where 5=Most important and 1=Less important The interviews show that Mobile tv is the most important channel for the traditional adv and also for sponsorship, as Web Tv. A good position is obtained by Pay per view tv for One Ad per Adv break

19 PERCEPTIONS ON MEDIA ASSETS Which of the following statement do you agree more with? General agreements on the statement: “Marketing budget sets the rule”. The market strategy determines the rule of media and creativity in every projects

PROFESSIONAL RESOURCES

21 THE MOST REQUESTED JOB PROFILES IN THE MEDIA / ADVERTISING INDUSTRY Which are the most requested job profiles in the media / advertising Industry among the following? Could you rank them? BASE : Achieved sample (cases n. 139) Top two: 62% Top two: 70% Top two: 56% Top two: 45% Top two: 25% Top two: 11% Media planner rises above the other job profiles in the media / adv industry. A good position is obtained also by the copy writer

22 EVALUATIONS ABOUT YOUNG ADV / MEDIA PROFESSIONALS AND MARKETEERS EDUCATION Do you think young advertising / media professionals and marketeers received an adequate and consistant education from their employers? Top two: 57% Top two: 56% Top two: 53% The young Adv agencies but also the Corporate clients employers received an adequate and consistant education on their job

23 CONTRIBUTIONS ON ADV EDUCATION AND TRAINING PROGRAMS Does your company give any financial contribution to undertake advertising education and training programs? Casi n.12 (*) (*) Top two: 93% Top two: 93% Top two: 86% Top two: 100% Top two: 100% Top two: 96% * Not much cases: qualitative information General agreements about the companies’ contribution to the adv education and training programs for their employers (Top two boxes 93%)

24 MARKET VISION  Internet, online advertising, search engine and new media in general obtain the highest degree of perceived innovation (85 and 84%, respectively).  Based on the common market view, they will rise above the other classical media in advertising investments in the next 5 years.  As regards the media’s advertising share in 3 / 5 / 10 years, television will show the highest share in the next 5 years. A good position will be obtained also by press. THE IMPACT OF DIGITAL MARKETING AND ONLINE ADV ON THE MEDIA MIX  General agreements for the sentences about new media advertising: –adv on IpTv and mobile phone will be additional to traditional TV and not substitute ( Top Two boxes 72%) –consumers would permit to receive advertising message via sms/mms in order to access to free digital content (video clip, news, music track, etc.) ( Top Two boxes 70%)  Talking about the media impact in 3 years time, Pay Per View Tv - more than the other media – are quoted as the media that will have a strong impact on adv revenues but also in audience and consumer favourability. Executive Summary 1/3

25  Consumer would prefer traditional advertising and also sponsorship on Mobile tv, while Web Tv only for sponsorship. Pay Per View tv is the most important channel for One Ad per Advertising break.  The statements suggested about new media market obtain general agreements on the following items: –Marketing budget sets the rule (“ I strongly agree ” 42%) –Market strategy defines roles of media and creativity in each project PROFESSIONAL RESOURCES  Media planner rises above the other profiles in the media / adv industry as the most requested job ( Top Two boxes 70%). A good position is obtained also by the copy writer ( Top Two boxes 62%).  The young Adv agencies but also the Corporate clients employers received an adequate and consistant education on their job ( Top Two boxes 57 and 56%, respectively). In confirmation, the survey shows general agreements on the companies’ contribution to advertising education and training programs for their employers ( Top two boxes 93%). Executive Summary 2/3

26 KEY FACT The impact of digital marketing and online advertising rebalancing the marketing media mix. Internet, search engine and new media in general (Mobile tv, Web tv, ect.) - characterized by the highest degree of innovation - will rise above the classical media in adv investments in the future; moreover consumers permit to receive adv messages on mobile phones and Pay Per View Tv. New media are universally recognized as the main channels to convey advertising. The usage of the new technologies in the advertising needs to specific skills : many media Companies give financial contribution to undertake advertising education and training programs specially for young employers. Executive Summary 3/3

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