2. TABLE OF CONTENTS
Situation Analysis 4
Campaign Objectives & Strategies 10
Media Objectives & Strategies 14
A strategic interactive media plan for Online Advertising 20
Streaming Video & Audio 26
Search Engine Marketing 30
Search Engine Optimization 36
Mobile Advertising & Promotions 40
Location-Based Advertising & Promotions 42
Samantha Ganz Mobile Application 44
Kassie McLaughlin Social Media 46
Digital Out-of-Home 50
Campaign Summary 52
2
3. SITUATION ANALYSIS
Brand Review
Industry Review
The DVD rental industry presents consumers with many options of how and where to rent movies. Individuals In July 2010, BusinessWeek named Redbox the fastest growing U.S. video retailer.5 The company began in 2002 under
can rent DVDs in-store, at rental vending machines, stream video online, buy directly through their cable McDonald’s ownership and officially entered the marketplace in 2004 with more than 100 self-service vending kiosks
provider or receive DVDs by mail. for DVD rentals. Now, 26,000 Redbox kiosks exist nationwide in grocery stores, convenience stores, gas stations,
pharmacies and some popular national landmarks. The company’s key retail partners include:
These many options allow consumers to tailor their DVD rental experience to their exact preferences, focusing
on whichever element is most important to them, whether it is price, convenience, method of payment, etc. • Walmart
In 2009, DVD vending companies represented 19 percent of the DVD rental market, while rent-by-mail held • Walgreens
36 percent and traditional movie rental stores claimed 45 percent.1 • McDonald’s
• Leading Grocery Stores such as Kroger and Albertsons
With the overall economic struggles of the past few years, research shows people prefer to rent DVDs rather • Leading Convenience Stores such as 7-Eleven and Circle K
than purchasing them. In 2009, DVD rental revenue increased 4 percent while sales dropped 13 percent.2
At each self-service vending kiosk, the Redbox interactive touch screen allows consumers to browse more than 600
In the DVD rental industry, Redbox is a convenient and inexpensive option for consumers. Redbox began DVDs, spanning 70 to 200 titles.6 Customers can rent DVDs for one dollar plus tax per night with a credit or debit card.
2010 with 23 percent of the U.S. home video rental market, and increased by 7 percent to reach 30 percent
at the end of the year.3,4 The Redbox website and iPhone app each offer consumers the opportunity to reserve their movie ahead of time
and pick it up at their kiosk of choice. Redbox emphasizes their product’s convenience with a “rent-and-return”
policy that allows DVD renters to return their DVD to any kiosk, regardless of where they rented.
Every Tuesday the newest releases are stocked in Redbox vending machines, yet the most popular night for rentals is
Friday when Redbox processes about 80 transactions per second.1 More than one billion movies have been rented
out of Redbox kiosks and the company continues to grow.6
4
4. SITUATION ANALYSIS
Redbox is America’s destination for movies
Competitive Review
Current Consumer
DVD Rental Vending Companies and Kiosks: Blockbuster Express
Mary Jones, a fourth grade teacher, and her husband, Tom, juggle a busy
Redbox Strengths
weekly schedule between work and their two teenage children. Four
• As of 2010, Redbox had 26,000 kiosks compared to Blockbuster Express’ 10,000
years ago, Tom was laid off from his job as an IT technician for a large
corporation. Now, he works to make ends meet by freelancing as an IT • Blockbuster Express is a new service released in the last 2 years; Redbox has been serving
specialist. With a significantly reduced household income, the Jones’ closely consumers since 2002
limit their recreational spending. Most challenging is coming up with ways Redbox Weaknesses
to entertain their children, since they previously frequented movie theaters • Blockbuster has strong brand recognition as a leading movie rental service
and theme parks, and often took adventurous family outings. Now they
• Blockbuster Express has a connection to Blockbuster stores, for more rental options
enjoy low-key Friday nights at home, playing board games and renting a
movie as a family.
Online Streaming: Hulu, Netflix, iTunes, Apple TV, Google TV
Demographics Redbox Strengths
• Consumer does not have to have access to Internet or broadband connection
• Low income household of $10-45K7,8
• No commercials (compared to Hulu)
• Large, teen-dominated families9
• Relatively cheaper
• Heads of households most likely to be between the ages of 30 and 49
• iTunes rentals are $3.99 for 24 hour access to new releases
• Netflix costs at least $8-10 a month11
Attitudes
Redbox Weaknesses
• Prefers to spend a quiet evening at home • Consumer can access movies directly through their computer or television without
• Often sits down to a meal together at home9 having to visit a kiosk
• Values self as strongly family-centered • Consumers may already use online streaming services to access TV shows and music
and will not want to use an additional service for movies
Behaviors Rent-By-Mail: Netflix, Blockbuster
• Rents films between 4 and 9 p.m.10 Redbox’s Strengths
• Stopped buying and renting DVDs in the last three years because it was too much expensive or too much hassle7 • Consumer can have the DVD as soon as they go to a Redbox, they do not have to wait 2-4
• Uses the Internet to shop for products and get information9 days for it to arrive in the mail
Redbox’s Weaknesses
• Consumer does not have to leave their home to access DVD
• Rent-by-mail has a larger selection of older titles than Redbox
6
5. SITUATION ANALYSIS
Competitive Review
Direct from Cable Provider: On Demand, DIRECTV Strengths Weaknesses
Redbox’s Strengths Affordable • Does not receive the newest DVD releases
• Less expensive: Redbox DVDs are $1 per night compared to $4-6 a cable provider charges for a 24 hour rental • $1 per night and no late fees until 28 days after they arrive in retail stores
• Consumer has a physical copy of the DVD to watch in any DVD player or computer, compared to a DVD • No subscription necessary • Requires payment by credit or debit card
Convenient • Videos cannot be streamed online or
rented from a cable provider which must be watched on the television it is rented on
• Kiosks located nationwide in highly frequented accessed through current cable provider,
Redbox’s Weaknesses venues such as Walgreens, McDonalds and instead users must visit a Redbox kiosk
CVS
• Consumers do not need to leave their home to rent a DVD • Limited amount of DVDs in each kiosk
• Rent-and-Return anywhere policy allows
• Consumers do not need to use a credit card, as on-demand purchases are directly added onto their cable bill
customers to return DVDs to any Redbox kiosk,
regardless of where they were rented
<< S.W.O.T.
• Consumers can reserve a DVD online or via
Rental Stores: Blockbuster, Hollywood Video, Family Video
mobile for pickup at kiosk
Redbox’s Strengths Interactive
• Active presence and strong following on social
• No membership required
media sites such as Facebook and Twitter8
• Consumer does not have to go out of their way to visit a rental store; kiosks are located at grocery stores, convenience
• Strong cohesiveness throughout email, mobile,
stores and pharmacies
social media and website marketing8
• Kiosks only have hit movies and a limited number of titles,
Opportunities Threats
making it easier for individuals to find what they are looking
for12
• No late fees: all DVD rentals are $1 per night
• Create loyal customer rewards program • Delay of access to new releases could hinder
Redbox’s Weaknesses
• Tap into Hispanic market spontaneous purchasing at kiosks
• Rental stores have new releases 28 days before kiosks
• Leverage Hispanic use of mobile by increasing • Movie companies could drive up licensing
• Can return DVDs until midnight at most rental stores as
Redbox application’s features fees, which could force Redbox to charge
compared to 9 p.m. at Redbox
• Position Redbox as an inexpensive, family- more per rental
• Stores carry older films and videos in niche categories
oriented source of entertainment • Rise of other competitive DVD and streaming
services
8
6. CAMPAIGN OBJECTIVES & STRATEGIES
Key Opportunties Strategic Value Consumer
• Connecting with Hispanic non-users where they participate online
and on mobile devices Demographics9
• Expand mobile application’s features to increase competitive
advantage • Hispanic
• Create customer rewards program to sustain brand loyalty • Household income of $0-30K
• Heads of household between ages 18 and 34
Business Objective
• Has children under 10 years old
Increase Redbox DVD rental sales by 3 percent
• Primarily resides in mid to large cities in the South and West13, 14
• Highest level of education obtained is a high school diploma or some college experience15
Strategic Value Consumer
Jose and Gabriella Martinez each work 60-hour weeks to provide for their household, which currently
includes their two young children as well as Gabriella’s parents and brother. They value their time Attitudes
together and eat a large traditional Hispanic meal every Sunday. With a mixed-generational family,
• Does not have a strong language preference, but speaks both English and Spanish
both English and Spanish are spoken in the Martinez home. Gabriella is the primary household shopper,
and always takes advantage of special offers. Jose considers himself the man of the house and gets • Often sits down to a meal together at home with family
information from the Internet to make decisions for the household. With a low household income, it is • Strongly agrees that the Internet significantly changes how they get information and
difficult to entertain the whole family outside of the home. The Martinez’s instead find inexpensive ways shop for products
to pass time together at home. Most recently this includes arts and crafts with the kids and watching a • Strongly agrees with the statement, “I often buy on spur of the moment”
movie as a family. • Does not enjoy shopping with their children
• Describe themselves as a careful money managers
Why this SVC?
• Hispanics fit into Redbox’s current target of low-income families, yet spend their time on and offline Behaviors
in different places than where Redbox currently focuses their advertising. Marketing to Hispanics
16
directly will tap into a relevant new target. • Always looks out for special offers when shopping
• Our strategic value customer is based on research that shows that Hispanic families are on a budget, • Uses high-speed Internet as a primary source of information
looking for family entertainment and are likely to purchase a good after reading about it online.9. 17 • Visits video sharing websites such as YouTube frequently16
• Targeting Hispanics in the areas where they are most active on and offline will expand Redbox’s • Uses a mobile phone regularly
current market to non-users that once reached are likely to be avid consumers.16 • Researching products online often leads to an in-store purchase
• Research showed that our SVC is not influenced by their children when it comes to purchasing • Frequently visits Myspace, Yahoo, Twitter, Photobucket and Myspace16
decisions.9 Therefore, although we are emphasizing Redbox as a family-centered purchase, we are
primarily targeting heads-of-households because they are the decision makers.
10
7. CAMPAIGN OBJECTIVES & STRATEGIES Saving money and convenience are the top priorities for Hispanic
shoppers: our promotion strategy heavily promotes Redbox’s
affordability and proximity to the user.18
Marketing Objectives
• Get Hispanic non-users to rent 5 movies over the year-long campaign Rationale
• Get 10% of Hispanics to consider Redbox as their preferred form of DVD rental
Our campaign will show Hispanics the value and convenience of renting a DVD with Redbox. The objectives are based off
the fact that Redbox is not currently directly targeting Hispanics. We are reaching out to Hispanics to initially generate brand
Marketing Strategies awareness, and then change DVD rental behaviors to purchase 5 DVDs over the course of our year-long campaign.
PRICE Maintain extremely affordable movie rental service Our strategies highlight Redbox as a family-centered brand based off the insight that Hispanics strongly value their family
PACKAGING Change Redbox infrastructure to highlight family-centered nature and are likely to live with multiple family members in one household.
POSITION Reposition Redbox as a form of family entertainment that aligns with Hispanic culture
Our strategies emphasize targeting Hispanics in specific ways that reach them on a direct, personal level because research
PROMOTE Redbox’s affordable form of family entertainment
shows they spend their time on and offline in different places than non-Hispanics.18
PLACEMENT Place Redbox in areas on and offline that are highly frequented by Hispanic families
Our pricing strategy is the right choice for our client because it is based off the insight that large families on a budget are
already more likely than the average population to use Redbox.12
Advertising Objectives
The advertising strategies launch in October, as the weather gets colder and heads-of-households need to find ways to
• Generate awareness level of 25 percent among Hispanic non-users
entertain their children indoors.
• Increase brand engagement of Hispanic users online, as measured by interactions with Redbox’s
integrated media strategy Our advertising strategies include using spokesperson Sofia Vergara because she is
• Convince Hispanic non-users that Redbox provides family entertainment for the best value a popular Hispanic who is close to the SVC in age. Vergara is highly regarded in the
Hispanic community, as she will be honored by the National Hispanic Media Coalition
for her Outstanding Performance in a Television Comedy Series on February 25. 19
Advertising Strategies
• Develop an integrated interactive and traditional media plan with a launch in late October
• Get 500 Hispanic users to sign up for Redbox’s customer loyalty rewards program
• Develop a “Hispanic Film Festival” week for two weeks in September and October for Hispanic Heritage
Month, to attract Hispanic attention
• Showcase Sofia Vergara, our new spokesperson, in all creative
• Implement online personality for Redbox on websites frequented by Hispanic heads-of-households
12
8. MEDIA OBJECTIVES & STRATEGIES
Seasonality
Geography 13,14
• Launch in first week of September to celebrate Redbox’s Hispanic outreach just before Hispanic Heritage month
begins on September 15
California
• Los Angeles • Continue promotions throughout October switching focus toward horror/thriller movies, which research shows
• San Francisco Hispanics have the highest audience share in.19 By showcasing a special selection of horror/thriller films, we hope to
• San Jose elicit attention from the Hispanic community and retain them as loyal customers.
• Sacramento
• Heightened advertising efforts will continue in mid-November through December, when Hispanic shoppers
Texas are preparing large family meals for the holidays. During this time, research shows Hispanic shoppers are more
• Houston concerned with family satisfaction, which directly aligns with Redbox’s family-centered objectives and strategies.18
• Dallas Internet and out-of-home will drive consumers to rent a Redbox DVD when they come across one when they are
• Austin running errands and buying groceries.
• San Antonio
• To start of the new year, Redbox will launch its new Customer Loyalty Rewards Program. In the season of resolutions,
Florida Redbox wants to reward its loyal customers for choosing affordable family entertainment all year round.
• Miami
• Ft. Lauderdale • Next, we will feature “Rain Checks” for free rentals in April. This program would provide loyal consumers with a free
DVD rental to save for a rainy day.
New Mexico
• Albuquerque • Our advertising will end with a bang during late July to early August. We will feature “Escape the Heat” specials that
provide incentives for our SVC to get out of the high temperatures of the Western and Southern summers and stay
Arizona cool inside watching a DVD as a family.
• Phoenix
Rationale: Redbox will target these key 12 cities throughout the campaign because they have strong Hispanic markets and overall
Hispanic population. Additionally, Redbox kiosks are most likely to be readily available in locations throughout urban areas and September October January April July
their surrounding suburbs.
2011 2012
Launch Halloween Introduce Rewards Program Rain Checks Escape the Heat
Hispanic Heritage Month Thriller Push and Redbox Deluxe App Promotion Specials
14
9. MEDIA OBJECTIVES & STRATEGIES
we
Timing
Weeks within the Month Creative Brief
Advertising will not vary by week except in the following instances:
• Launch in first week of September Role of Advertising
are
• Sustain heavy advertising throughout October
The advertising creative must generate awareness that Redbox
• Increased advertising in the first week in January will generate attention for the launch of the Redbox is family-focused, and convince Hispanic heads-of-households
Rewards Program and the Redbox Deluxe Mobile Application. that Redbox is the most affordable, convenient and enjoyable
• Third week in July will start “Escape the Heat” promotions home entertainment for the whole family.
Days within the Week Creative Big Idea: “We are where you are”
where
• Redbox will emphasize Internet advertising Monday through Friday because our SVC is highly likely to be on
• Emphasize convenience
the Internet at work as well as at home on these days.9
• Promote affordability
• The most Redbox rentals occur on Friday nights, and new releases are stocked on Tuesdays.6 Therefore we
will target customers during the week to remind them of new releases and steer them toward Redbox for
• Center on family values
their weekend movie night rentals.
• Redbox will push special family-focused advertising on Saturdays as a form of family entertainment. Key Message
you
Redbox is the DVD rental service that recognizes and best aligns
Hours within the Day9 with Hispanics’ lifestyle, helping them achieve family moments
• Our SVC is most likely to use the Internet between 9 a.m. and 4 p.m. both at work and at home and togetherness that they highly value.
• During the week, our SVC is highly likely to be on the Internet at home between 7 and 11 p.m. On weekends,
Tone
Internet use is high throughout the day at home, from 9 a.m. to 7 p.m.
• Our target is also likely to be on the Internet from 6 to 7 a.m. but Internet activity during those hours rarely Happy, uplifting, joyful, family-focused, togetherness, loving,
leads to a purchasing decision. Therefore, we plan to push our online advertising heavily throughout the affectionate, caring, memorable
are
workday from 9 a.m. to 4 p.m. This coincides well with current Redbox transaction trends that show most
DVDs are rented between 4 and 9 p.m.10 Manner
• Our SVC is likely to be “on the go” or shopping from 4 to 7 p.m., so we will increase out-of-home and mobile Ads depict happy families enjoying their time together, bright
advertising during these hours. colors, light-hearted background music, people smiling and
laughing
Staying Competitive
• Netflix has strong “gifting” campaigns during the Holiday Season. Redbox should be actively promoting
their DVD rental service during this time as well, given that this is a time where families generally spend a lot
of time together. During this time, we will emphasize the convenience and affordable value of Redbox’s
rental service and the brand’s family-centered values.
• Additionally, we will offer loyal customers chances to get free DVD rentals and new consumers a chance
to get cheaper rates on rentals, as it is the Season of Giving.
16
10. MEDIA OBJECTIVES & STRATEGIES
Flowchart Budget
Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug. Total
Online Advertising $14,117,724 $12,560,454 $12,075,246 $14,516,298 $20,578,218 $11,994,948 $11,994,948 $18,319,374 $11,994,948 $11,994,948 $15,561,558 $13,071,714 $168,780,378
Online Advertising Streaming Audio: $690,887 $690,887 $544,336 $544,336 $2,470,446
Pandora
Streaming Audio: Search Engine Marketing/
Landing Pages
$3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $36,000
Pandora Search Engine $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000
Optimization
Search Engine Marketing Mobile Advertising $1,200,000 $1,200,000
Location Based Free Free Free Free Free Free Free Free Free Free Free Free Free
Promotion
Landing Pages Mobile App $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $100,000
$4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000
Search Engine Facebook, Non Paid
Optimization Twitter, Non Paid $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $4,167 $50,000
$1,950 $1,950 $1,950 $1,950 $1,950 $9,750
Mobile Advertising Facebook, Paid
Twitter, Paid $60,000 $60,000 $60,000 $60,000 $60,000 $300,000
Mobile Promotion Digital Out of Home $3,600,000 $3,600,000 $7,200,000
TOTAL Media Budget $18,995,174 $16,928,791 $12,090,746 $14,531,798 $21,359,055 $12,022,948 $12,022,948 $18,953,660 $12,022,948 $12,022,948 $16,195,844 $13,099,714 $180,246,574
Location Based
Advertising
Location Based
Promotion 1% 4%
1%
Mobile App
Facebook, Non Paid 0%
0%
Twitter, Non Paid
Facebook, Paid
Twitter, Paid
Digital Out of Home 94%
18
11. ONLINE ADVERTISING
Data Analysis: Simmons Choices 3 Data Analysis: Quantcast
Quantcast December (2010) - COMPOSITION Quantcast December (2010) -
Simmons Choices 3 (2008) - REACH Simmons Choices 3 (2008) - COMPOSITION
Top Advertised Websites, Amongst (Target) REACH
Top Websites Visited in Last 30 Days, Amongst Top Websites Visited in Last 30 Days, Amongst
Rank Website Name Composition % Comp. Index Top Advertised Websites, Amongst
(Target) (Target)
1 lacuerda.net 11 8024 (Target)
Rank Website Reach Index Rank Website Name Reach
2 mercadolibre. 6 4068 Rank Website Name Reach %
Name 1 YouTube.com 11.4574
com.mx 1 YouTube.com 95
1 Google.com 25.7075 62.75 2 Yahoo.com 11.32
3 univision.com 6 4029 2 Google.com 84
2 Yahoo.com 21.9075 82.5 3 Wikipedia.com 10.8325
4 misabueso.com 6 4003 3 Twitter.com 71
3 MySpace.com 17.42 128.25 4 T-Mobile.com 9.61
5 terra.com 5 3506 4 Yahoo.com 63
4 YouTube.com 14.48 96.25 5 Time.com 9.435
6 gob.mx 5 3276 5 MySpace.com 56
5 Mapquest.com 14.395 59 6 Real.com 9.3575
7 sonico.com 5 3190 6 Wikipedia.com 53
6 Ebay.com 11.885 67.75 7 NBA.com 9.2825
8 quepasa.com 4 2894 7 Live.com 43
7 MSN.com 10.625 88 8 MyWay.com 8.9575
9 batanga.com 4 2825 8 MSN.com 40
8 Amazon.com 9.5925 56.5 9 MySpace.com 8.8525
10 fotolog.com 3 2454 9 Ask.com 40
9 Hotmail.com 9.2575 94.25 10 MyNetworkTv.com 8.685
11 hi5.com 3 2390 10 Answers.com 34
10 Bestbuy.com 9.0725 86.25 11 MSN.com 8.6375
11 AOL.com 7.9175 75.75 12 tentaculous.net 3 2236 11 Bing.com 32
12 Movietickets.com 8.0625
12 iTunes.com 7.775 89.75 13 taringa.net 3 2214 12 AOL.com 31
13 Movies.com 7.7725
13 Disney.com 7.7675 185.5 14 casatatela.edu 3 90.5 13 softonic.com 28
14 Moviefone.com 7.725
14 Ask.com 6.855 90.5 15 espanacash.com 3 2104 14 Microsoft.com 27
15 Monster.com 7.6075
15 Expedia.com 6.0675 76.25 15 4shared.com 27
Quantcast Data Analysis:
Simmons Data Analysis: Within the Quantcast media planner, we defined our SVC as Hispanics, ages 18-34, with a household income of $0-
We used Simmons Data to find the top websites for Hispanics ages 18-34, with low household incomes, who have 30K, and has children ages 0-17. Within these parameters, the above sites are most visited by our target market. Of
rented a DVD in the past year and have children. Using Simmons data, we found the top sites for our target market these sites, YouTube, Google, Yahoo, MSN, Ask and Myspace will best reach a large portion of our SVC. Additionally,
are Google sites, Yahoo, Myspace, YouTube and Mapquest. Though those five sites are the highest for our SVC by the top sites for our SVC by composition are all sites in Spanish. Of those listed, we suggest only advertising on Univision.
reach, we suggest only buying advertisements in the top four. Mapquest ultimately did not appeal to us because of Univision is the only site that appears in the top ten web properties among Hispanic users that prefer Spanish that
conflicting research on how well it would reach our target audience. Other sites that stand out to us in this segment differs from those who prefer English.1 Univision will help to reach a portion of our target market that English sites may
are eBay, MSN, Amazon and Ask; research from Ad Age’s Hispanic Fact Pack confirmed that these are strong ways to miss. Our research also shows that our SVC is bi-cultural, feeling equally comfortable speaking Spanish and English.1
reach our SVC. Research looking only at sites’ user composition found YouTube, Yahoo, Myspace and MSN in the top Therefore, it is not necessary to reach our SVC only through Spanish sites; research showed Spanish sites to have no
15 websites. Given this overlap with total reach of our target market, we believe these are sites that would be most increased value over English sites.1,20 We do not suggest advertising on more of these Spanish sites because of low
beneficial for our advertisements. reach and that the language is not particularly important to our SVC.
20
12. ONLINE ADVERTISING
Other sites our SVC is likely to visit The Role of Online Advertising
Based on TV networks with highest Hispanic viewership1 Top 10 Web properties among Hispanic users1 Online advertising plays a huge role in the marketing mix to reach Redbox’s target consumer. Hispanics are extremely
• Telemundo • Fox Interactive Media active online and we want to advertise where their attention is.22 Hispanics research information online about
• Fox • EBay products before purchasing them; 61 percent of Hispanics made a purchase in-store after seeing online ads while
• TeleFutura • Apple researching products.17,22 Brands cannot target Hispanics simply by having a presence online. Instead, they must make
• ABC • Facebook digital marketing efforts that are culturally relevant and engage in
• CBS • Amazon conversations with them online.21
• NBC
• CW Hispanic Social Networking Site Usage1 Social media and search will also play significant roles in our
• MyNetworkTV • Tagged marketing mix. Hispanic consumers spend a significant amount
• Azteca America • Facebook of time online. Of this time spent online, 39 percent is devoted to
social networking.21
Our online advertising will strongly focus on social networking sites to
These are other websites to reach our target market that are not listed in Simmons or Quantcast data. The first list includes actively engage in areas where our SVC is spending an abundance
television websites with the highest network viewership of Hispanics overall1. Because Hispanics are avid viewers of these of time. Social networking sites offer the vital opportunity for Redbox
different TV networks, we believe they are also likely to visit their websites to explore schedules and get more information to engage with our SVC directly and form authentic relationships
about their favorite shows. The next set includes sites that Hispanics overall visit the most. with them, something the demographic strongly values.21
As supported in above and in previous sections, eBay and Amazon consistently appear as high reach sites and high Search is also very important when marketing Redbox to our target
composition for our specific demographic targets. This is why we suggest advertising on these sites in particular. Tagged audience because the site with the overall highest reach and
and Facebook are top social networking sites in the Hispanic community. We suggest advertising on both social networks composition for our SVC is Google. The Google Hispanic Marketing
because of the different nature of each site. Facebook emphasizes keeping in touch with people you already know, Forum found that 93 percent of US Hispanics use Google as their
whereas Tagged is used for meeting new people. Through our research, we have found that Latino culture emphasizes primary search engine17.
family, friends and the group over the individual. As a demographic, Hispanics are high users of social media because
networking sites allow them to tap into these core values and satisfy their desire for community.21 53 percent of Hispanics use search engines to gather information
on products/shopping.22 Using paid and organic search marketing methods, we can proactively guarantee Redbox
will appear where Hispanics are searching online and help lead them to purchase.
22
13. ONLINE ADVERTISING 60% of Hispanic audiences view digital marketing campaigns as worthwhile,
compared to 42% of non-Hispanics31
Online Banner Ads Demographic Targeting
• Hispanics are significantly more receptive to an online banner ad that is automatically tailored to their interests than We are targeting our advertisements to be placed on websites that have a
high reach to individuals in our SVC with the following characteristics:
non-Hispanics23
• We will target our rich media banner ads specifically to Hispanic attitudes and values like family, togetherness and
• Hispanic
enjoyment.
• Ages 18-34
• Household income <$30,000
Social Networking Sites & Online Video • Has children
Hispanics are social media shoppers22 Geographic Targeting
• 64% of Hispanics visit video sharing websites We will target our SVC by the top cities we found to
• 94% of US Hispanics who watch online video visit YouTube have the strongest Hispanic markets:
• 41% of Hispanics watching video leads to a purchase online • Los Angeles, CA
• San Francisco, CA
Mobile Ads • San Jose, CA
• Sacramento, CA
Mobile will play a large role in Redbox’s marketing mix because an overwhelming percentage of Hispanic consumers • Houston, TX
actively use mobile devices for researching future purchases.22 • Dallas, TX
• Hispanics are 32% more likely to have a smart phone than the general population • Austin, TX
• 93% of US Hispanics use a mobile phone regularly • San Antonio, TX
• 78% of Hispanics have used a mobile search engine to research something seen on TV • Miami, FL
• Hispanics are more receptive to mobile coupons and shopping offers than non-Hispanics23 • Ft. Lauderdale, FL
• Albuquerque, NM
Timing • Phoenix, AZ
• Our digital advertising efforts will maintain consistent throughout the year because our SVC is constantly online. Behavioral Targeting
• In the months where we have heavier pushes towards Redbox, there will be an increased amount of advertising. We will also target our online ads based on the behaviors of our SVC. Our research shows that Hispanics are
These months are September, for the campaign’s launch, October for our Halloween Thriller Special, January for extremely active online. Hispanics research information on possible purchases online before they buy them and
the commencement of the Redbox Rewards Program, April for our rainy day special and July for our “Escape the 61 percent of Hispanics make a purchase in-store after seeing online ads while researching products.17
Heat” push.
This consumer behavior directly aligns with renting from Redbox. We want to reach our consumers online where
they research purchases knowing that they are highly likely to follow through with an in-store purchase. Therefore,
our online ads will appear on popular search engines like Yahoo, MSN and Google that our SVC frequently uses
to research purchases (from top 10 sites we chose based on Simmons and Quantcast).
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14. ONLINE ADVERTISING
Family Focused Banner Ad
Online Sites
• Our main online ad concept focuses on our
Based on overall research and data, we suggest placing advertisements on: overall creative idea: family entertainment.
• YouTube • The ad shows a mother and child shopping in a
• Yahoo grocery store, then introduces our slogan, “We
• MySpace Are Where You Are”
• eBay • Then Redbox’s convenience is carried through
• MSN showing the mother renting a DVD right outside
• Amazon the store she was already shopping at.
• Google (Display Network) • Finally, the ad closes on a Hispanic family enjoy-
• Ask ing a movie together at home.
• Tagged • This simple flash ad positions Redbox as a great
• Univision convenient option for family entertainment.
We suggest the top ten sites above because they represent a thorough mix of high reach sites as well as high site
composition for our SVC, as demonstrated by the Simmons and Quantcast data above. We also suggest Tagged Redbox Deluxe Banner Ad
because of additional market research on Hispanic social networking behavior.
• Another online ad promotes the newly devel-
oped Redbox Deluxe Mobile App.
• The ad states different uses of the mobile app
such as quickly reserving DVDs and managing
Online Advertising Cost Analysis rewards points.
• It goes on to emphasize the new interactive
• Online advertising media buy based off the given suggestions would cost a total of: $136,229,748 gaming features of the mobile app that allow
• With additional purchase of advertising on Pandora, the total Online advertising cost are $138,700,194 customers to play trivia games while they watch.
• Finally the ad shows a visual of the mobile app’s
simple, easy-to-navigate display.
• This online banner ad is key to our campaign
integration. By promoting the mobile app online
where our SVC spends a lot of time researching
products and participating in social media, we
will drive consumers to download the app. This
will in turn encourage customers to rent more
DVDs in order to use the mobile app effectively.
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15. STREAMING VIDEO & AUDIO
Suggested Pandora Ad Formats
Streaming Video on Hulu
Banner Display Ads
Hulu is an attractive opportunity for advertising online. • Formats: 300 x 250, 160 x 600
• Our SVC’s age group aligns with the Hulu’s highest group of audience: ages 18-3424 • We suggest that Redbox try banner display ads because Hispanics are highly receptive to online banner ads4.
• Hulu’s demographic is made up of a less affluent audience, like our SVC24
Audio and Companion Display Ad
• Offers a variety of rich media advertising options, which our SVC is highly receptive to23
• Hispanics are more receptive than the average population to all digital advertising, as long as it is targeted to them.
In this case, we would suggest Redbox place audio and companion display ads with Pandora.22,23
Role of Hulu in our total online advertising plan
• While Hulu would be an effective way to reach our target audience, we advise against Redbox advertising there because iPhone Banner Display Ad
of the conflicting nature of the sites’ content. Hulu and Redbox are direct competitors for user’s attention: both companies • Redbox should place iPhone Banner Display ads with Pandora because Hispanics are very active on their mobile
want viewers to use their service to be entertained via movies. devices and are more likely than the average population to have a smart phone. Additionally, these ads can be
• Redbox commercials will promote movie-watching behavior, but it is too simple for a Hulu user to stay on Hulu’s site and just targeted by age, gender and location, which can benefit Redbox’s advertising efforts.22,23
watch a movie there, instead of renting a DVD through Redbox.
• Hulu allows advertisers to integrate content into the ad buy, going way beyond a simple banner unit. Pandora’s Competitive Edge in Advertising
• These formats are great for click through rates and message recall, but would all together not motivate users to use Redbox
instead of continuing to watch content on Hulu.
• Pandora ads will be less invasive than other online media ads. The consumer is already
listening to Pandora so the advertiser has their attention without having to fight for it.
• Consumers are more receptive to advertising messages because they choose to use
Streaming Audio on Pandora the site, knowing that they will be served advertisements in exchange for free access
to Pandora’s radio stations.
Rationale for buying Pandora.com • Pandora has been found to have a high impact on urban and ethnic audiences,
• 64 percent of Pandora are between ages 18 and 3425. Also, 31 percent of Pandora’s which is beneficial to our client because we are trying to attract a Hispanic audience
users have an average household income of less than 35K25. Although only 12 percent of to Redbox.
Pandora’s current users are Hispanic, they have a high index number of 143, which suggests • The interactive nature of content and advertising on Pandora’s platform increases
consumer satisfaction with advertising2
that Hispanics are more likely to use Pandora than the average consumer26. Therefore
• Advertisements on Pandora are not cluttered by a huge amount of other advertisements
supporting our advice to advertise with Pandora.
or information. This allows an advertisement’s message to stand out and have high
• According to lecture, demand for online radio is expected to grow. Also, total web hours impact.2 Additionally, listeners cannot opt out of ads or fast-forward them, so they are
spent on Pandora are growing1. more likely to listen to them in their entirety to get to the next song.
• More than half of all Pandora usage comes from mobile1. This is a significant fact for our
SVC because Hispanics are extremely active on mobile devices and would enjoy using Total Cost: Advertising on Pandora
audio streaming on their mobile phones22.
Reach/Month CPM Reach/1000 October January April July Total
Banner Display Ads 20935982 $7 20,935.98 $146,551.87 $146,551.87 $293,103.75
Audio & Display 20935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.06
iPhone Mobile Display 20935982 $13 20,935.98 $272,167.77 $272,167.77 $272,167.77 $272,167.77 $1,088,671.06
Total $690,887.41 $690,887.41 $544,335.53 $544,335.53 $2,470,445.88
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16. SEARCH ENGINE MARKETING
93% of US Hispanics use Google as their primary search engine17
Role of SEM Google Adwords Ad Groups for Redbox
• Family Movie Night: Relating to affordable family entertainment
• Search engine marketing allows Redbox advertisements to appear on search results relevant to
• Movie lovers: Relating to new releases and genres of movies
the DVD rental service’s core offerings. The AdWords platform will help us achieve the strategic
• Cheap, affordable convenient: Basis of Redbox offerings for DVD/Blu-Ray rentals
objectives in our media plan because we can use search advertisements to reach our SVC through
• Redbox Deluxe Mobile app: Informing people of ways to enhance their movie watching experience
geographical targeting with timing schemes consistent with the hours that our research proved our
with the new Redbox app
target audience would be online.
We split our Google Adwords Campaign into four distinct ad groups to best target ads to the searchers they are most
• Search engine marketing is an important aspect of a media plan for Redbox because our SVC
relevant to. Each ad group has specific advertisements and ad copy tailored to what the consumer is most likely searching
obtains most of their information from search. Research from the Google US Hispanic Marketing
for and interested in.
Forum found that 93 percent of US Hispanics use Google as their primary search engine. Therefore,
we are confident that by placing search advertisements using Google AdWords, our target audience
is more likely to notice our ads and act on them. Google Adwords Campaign Tactics
• The Google AdWords platform only places advertisements on search results if they are relevant to
the content being searched. Thus, in our media plan this is an effective tool because our advertising To make sure our keywords best matched what consumers search for, we included common misspellings and
money is being spent on placements that directly relate to what the consumer is looking for. variations of Redbox such as “Red box” and “Red-box.”
Additionally, the Google AdWords platform is based on a “pay per click” basis, so we are only
charged for advertisements that an individual clicks on. This allows us to gain awareness for Redbox Negative keywords:
products without paying, as many individuals see and recognize the ads in the “paid” portion • “Buy”: Redbox does not allow individuals to buy the DVDs or blu-rays
of Google’s search results, yet do not click on them. These impressions are likely to lead to more • “Stream”: Redbox does not currently have streaming options
engagement with the brand; research found that having a search engine marketing campaign • “Pirated”: Redbox does not want to attract attention from individuals who pirate films, as that risks their films
increases direct traffic and organic traffic to the site.33 being burned and copied in the future
Competitive:
• We conducted a variety of searches to see what search strategies Redbox’s competitors are using. This showed
Costs us that it is important to include specific titles of new releases as keywords. For example, “Black Swan” is a
The daily cost analysis of Redbox’ SEM marketing strategy is detailed in a chart in Appendix D. The popular new DVD release. When searching “Rent Black Swan” and similar variations, competitors such as Netflix
average CPC for the suggested keywords is $0.85. With the estimated daily traffic, the average daily appear at the top of the paid search results. We suggest that Redbox buy keywords that relate to the specific
cost per keyword is $124.65. With this suggested strategy, we realize our daily SEM budget of $100 will movies that are within the kiosk that month. Because this media plan is setting strategies for the year to come,
max out very quickly because these keywords are expensive due to competitive demand. However, we did not include these specific film titles in our keyword list because it is impossible to tell when DVDs will enter/
we still suggest purchasing all of these keywords because it is essential for Redbox to appear on the leave the Redbox.
first page of search results in such a competitive market because 60% of searchers click one of the first • Instead, we decided to build on this strategy and suggest that Redbox buy keywords related to movie genres.
three organic search results.38 If Redbox fell off the first page, its targeted consumers could default to For example, if an individual is looking to rent a comedy they may search “comedy DVD rental.” Buying these
a competitor instead. keywords ensures Redbox will appear on the paid search results. Netflix also uses this strategy, so we have included
a specific list of movie genre related keywords to our list to make sure that Redbox has a role in this competitive
space of DVD rentals.
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17. SEARCH ENGINE MARKETING
Search Engine Marketing Advertisements SEM Marketing & Targeting
To ensure that Redbox paid search ads are reaching the desired audience, we have
chosen to geographically target the ads in cities where Redbox kiosks are readily
Redbox Rewards Program: available and the population is made up of strong Hispanic markets. Therefore, the
12 cities are:13,14
SEM Timing Rationale
Time of Day
• Based on Simmons Data, our SVC is most likely to use the Internet between 9 a.m. and 4 p.m. They are equally likely
to be on the Internet during these hours at home and at work on weekdays. During the week, our SVC is highly likely
Redbox Deluxe Mobile App or Movie Lovers: to be on the Internet at home between 7 and 11 p.m.
• On weekends, Internet use is high throughout the day at home, from 9 a.m. to 7 p.m. While our target is also likely
to be on the Internet from 6 to 7 a.m., Simmons data shows that Internet activity during those hours rarely leads to a
purchasing decision.
• We plan to schedule our search advertisements heavily throughout the workday, from 9 a.m. to 4 p.m. This coincides
well with current Redbox trends of rentals most often taking place between 4 and 9 p.m. (26).9, 10, 17
Time of Year/Seasonality
General Target - Convenience for Families: • Search is a very important of how our SVC obtains information and learns about products they want to buy.27 We
feel that it is essential that a Google Adwords campaign runs all year round and that the ads stay current to reflect
the various promotions and specials we are running throughout the media plan. For example, for our Halloween
Thriller Special, the ad copy and keywords bought will include more information about scary movies, thrillers and
Halloween entertainment. During these months, the amount spent per day will not change, instead a specific
ad group (includes individual keywords and advertisement) will be added to the campaign to relate to current
promotions and specials.
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18. SEARCH ENGINE MARKETING
Landing Page – Redbox Rewards Program Landing Page – Redbox as a service
• Highlights the points-system of the rewards program so users can see the value of joining the program • Benefits of using Redbox are clearly displayed in quick, easy-to-read bullet points
• Has a registration form for easy, access to becoming a rewards program member • User can type in their email to receive a coupon for a free rental and to receive the Redbox newsletter
• Provides an incentive to sign up: “Earn points towards free DVD rentals,” “Receive monthly deals and discounts” • A button to “look in the Redbox” and see a visual representation of what movies are currently in Redbox kiosks
• “We are where you are”
• Make the message of this page match up with our creative “big” idea. Show how Redbox kiosks are located in
convenient places near where people run their everyday errands.
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