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Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives 20. International Advertising and Promotion International Media The other way for the international advertiser to reach audiences in various countries is through international media that have multimarket coverage. The primary focus of international media has traditionally been magazines and newspapers. A number of U.S.-based consumer-oriented publications have international editions, including Time, Newsweek, Reader’s Digest, and National Geographic as well as the newspaper USA Today. Cosmopolitan publishes 29 international editions that reach over 30 million readers in various countries (Exhibit 20-17). U.S.based business publications with foreign editions include BusinessWeek, Fortune, Harvard Business Review, and The Wall Street Journal. International publications offer advertisers a way to reach large audiences on a regional or worldwide basis. Readers of these publications are usually upscale, highincome individuals who are desirable target markets for many products and services. There are, however, several problems with these international media that can limit their attractiveness to many advertisers. Their reach in any one foreign country may be low, particularly for specific segments of a market. Also, while they deliver desirable audiences to companies selling business or upscale consumer products and services, they do not cover the mass consumer markets or specialized market segments very well. Other U.S.-based publications in foreign markets do offer advertisers ways to reach specific market segments. While print remains the dominant medium for international advertising, many companies are turning their attention to international commercial TV. Packagedgoods companies in particular, such as Gillette, McDonald’s, Pepsi, and Coca-Cola, view TV advertising as the best way to reach mass markets and effectively communicate their advertising messages. Satellite technology has helped spread the growth of TV in other countries and made global television networks a reality. Global Perspective 20-4 discusses how MTV has become the largest global television network in the world. © The McGraw−Hill Companies, 2003 Exhibit 20-17 Cosmopolitan reaches women around the world with 29 international editions 687 Chapter Twenty International Advertising and Promotion
Belch: Advertising and Promotion, Sixth Edition VII. Special Topics and Perspectives GLOBAL PERSPECTIVE 20-4 688 20. International Advertising and Promotion MTV Goes Global—but with a Local Touch MTV (Music Television) Network was launched in the United States in 1981 as a joint venture between American Express and Warner Communications. Almost from the outset, the pioneering 24-hour music video cable channel put young viewers in a trance, influencing how they looked, talked, and shopped. The outfit that all but invented the rock video has become perhaps the biggest force in the music world. It is also the premiere platform for marketers trying to woo young consumers in 136 countries and 340 million households around the world. Every week nearly 188 million people watch their MTV—and 80 percent of them tune in outside the U.S. In 1986, Viacom International purchased MTV and a year later launched its first overseas channel in Europe. MTV’s first international venture got off to a wobbly start, piping a single feed across Europe, with English-speaking veejays. MTV learned the hard way that, while Europe’s youth agreed with the slogan “I want my MTV!” they didn’t want a homogeneous version, as their tastes vary by country. Local copycats cropped up and stole MTV’s viewers and sponsors, and the network suffered as a result. In 1995 MTV changed its strategy and broke Europe into regional feeds. It now has five feeds on the Continent: one for the United Kingdom and Ireland; another for Germany, Austria, and Switzerland; one for Scandinavia; a broader broadcast for Belgium, Greece, France, and Israel; and one just for Italy alone. Following its European debut, MTV moved into Latin America in 1990 and launched a pan-regional service in Asia in 1995. Viacom has been pushing MTV ever deeper into markets in Asia, where it now reaches 125 million households and has seven separate channels: Southeast Asia, which is English-language programming for Singapore, Indonesia, Malaysia, Thailand, and the Philippines; separate Mandarin feeds for China and Taiwan; an English-Hindi channel for India; South Korea; and its most recent launch, Japan. MTV Japan originally debuted in 1992 but only lasted until 1998, as its mainly international content did not fare well in a market where Japanese artists dominate the music scene. When MTV relaunched its Japanese channel in 2001, it did so with a local staff from its Tokyo production base that determines all music playlists and features a mixture of Japanese and international content. MTV’s coverage is unmatched in reaching Asia’s vast ranks of young consumers. Nearly two-thirds of Asia’s 3 billion people are under the age of 35. The middle class is expanding and splashy Western-brands products, from Procter & Gamble per- © The McGraw−Hill Companies, 2003 sonal products to Nokia cell phones, are symbols of making it among consumers. In Europe and Asia, digital and satellite technology have made localization of programming easier and less expensive, as six feeds can be beamed off one satellite transponder. While some of the programming shown in various countries can originate from the United States, MTV channels worldwide air more locally produced and programmed content. However, in most markets, 70 percent of the video fare is local music, as more and more countries have their own popular music and local stars who sing in their own language. For example, in Brazil, MTV first began by playing an equal amount of Brazilian and international music. However, MTV has become more of a Brazilian channel and features more music from local artists as well as programming with stronger cultural, social, and political relevance. Over the past three years, MTV Brazil’s audience size has doubled and advertising income has increased by 30 percent. The president of MTV’s international networks says: “People root for the home team, culturally and musically. Local repertoire is a worldwide trend. There are fewer global megastars.” Going local offers political benefits as well. MTV must constantly fight the perception that it is trying to take an American version of what is popular and trying to implant it globally. MTV executives note that the company is always trying to fight the stereotype that MTV channels in various countries are importing American culture. Viacom’s chairman, Sumner Redstone, denies the charge and says to do so would be a
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IN2 Name and Company Index Belch: A
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