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Belch: Advertising and<br />

Promotion, Sixth Edition<br />

V. Developing the<br />

Integrated Marketing<br />

Communications Program<br />

10. Media Planning and<br />

Strategy<br />

While you are probably already familiar with<br />

terms like PIP (picture in a picture), DVD, and<br />

PDA (personal digital assistant), you may not<br />

know about DSL (digital subscriber lines), VOD<br />

(video on demand), and PVRs (personal video<br />

recorders). You may have heard of these technologies,<br />

but do you really know what they do?<br />

Media and entertainment people think they<br />

know about all of these things, but whether they<br />

do or not is open to debate.<br />

The recent buzz in these industries is about<br />

convergence and how it is going to change the<br />

media landscape. The advent of digital television,<br />

mobile phones, and the Internet has led to<br />

the belief that the traditional means of watching<br />

television will be a thing of the past, with viewers<br />

now “multitasking,” that is, using more than<br />

one medium at once (e.g., surfing on the Internet<br />

while watching television). Such technologies<br />

will empower consumers to control their own<br />

© The McGraw−Hill<br />

Companies, 2003<br />

DSL, VOD, TiVo and PVR:<br />

They All Add Up to Convergence—Or Do They?<br />

streams of information, entertainment, and content,<br />

where and when they want them. Should<br />

this be the case, media planning in the future<br />

will have to change demonstratively to keep<br />

pace. The new technologies may alter the communications<br />

landscape forever.<br />

Consider the changes that may occur as a<br />

result of interactive television. Rather than being<br />

just a box that provides viewing entertainment,<br />

the television is being transformed into an interactive<br />

tool that allows the viewer to play games,<br />

access movies on demand, surf the Web, and<br />

make purchases. Microsoft is betting that in the<br />

future most of us will access the Internet through<br />

our television sets rather than on our PCs.<br />

A recent study conducted by the Nielsen Interactive<br />

Group claimed that 30 percent of Internet<br />

users now have Internet access in the same room<br />

as their TV sets. Further, the study showed that<br />

67 percent of active Internet users are on the Net<br />

at the same time that they are watching television.<br />

What this means—according to Nielsen and<br />

others—is that the likelihood of watching television<br />

commercials will decrease and advertising<br />

revenues to this medium will also go down. What<br />

it also means is that opportunities will exist to<br />

reach consumers through other media like the<br />

Internet and cell phones. To a degree, consumers<br />

will almost never be out of the reach of a commercial<br />

message, and advertisers will have the<br />

opportunity to send their messages through a<br />

variety of platforms.<br />

Take Nissan, for example. The company’s<br />

launch of a new 4 × 4 in Britain employed interactive<br />

TV to provide specifications, additional<br />

information, and requests for brochures and test<br />

drives, all at the click of a button. Virgin Mobile,<br />

another British company, used iTV to ask potential<br />

customers what annoyed them about their

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