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Disney Interactive Intends to Intimidate

David Meerman Scott’s New Rules of Marketing and PR includes, “People want participation, not propaganda” (Scott, 46).  This is referring to the shift from interruptive, passive marketing to fresh and interactive marketing of today’s digital market.  The Walt Disney Company abides by this rule, and has developed an entire department to do exactly that.  With the additional division, the organization intends to intimidate competitors with its online interactive presence.

The Disney Interactive branch of The Walt Disney Company focuses on creating shared content for all of its’ digital media platforms.

disney interactive

“Disney Interactive is one of the world’s largest creators of high-quality interactive entertainment across all current and emerging digital media platforms. Products and content released and operated by Disney Interactive include blockbuster mobile and console games, online virtual worlds, and No. 1-ranked web destinations Disney.com and the Moms and Family network of websites.” (http://thewaltdisneycompany.com/about-disney/company-overview)

An example of this interactive online experience is the online magazine, Babble.  (http://www.babble.com/ ) This website allows young parents to connect with others and engage in blogging about similar child-raising experiences.  It is an interactive outlet that caters directly to the young parents of today.

babble

Scott’s rule about customer participation proves to be extremely applicable to Disney, in the sense that they have tried to engage in the digital market in order to stay current and accessible in a changing world.  Unfortunately, this rule does not seem to be growing and providing as much as one would expect for The Walt Disney Company.  While Disney Interactive is still a very small sector of The Walt Disney Company, the gaming and web division has been a continued drain to the overall organization. (http://www.nytimes.com/2014/03/07/business/media/disneys-game-and-internet-division-cuts-one-quarter-of-its-workforce.html?_r=0)

Do you think that Disney Interactive is a necessary addition to The Walt Disney Company? Or is there a better outlet for the organization to connect with the online market and interact with its consumers?

Affirmative Advertising in a Digital Age

The Walt Disney Company spent 1.93 billion dollars in 2013 on advertising alone.  While this number seems extraordinarily high in an increasingly digital age, advertising was approximately 31% of the total of 6.14 billion dollars net income for the company in 2013.  The company’s total advertising spending includes measured-media and unmeasured spending.  Measured media consists of magazines, newspapers, broadcast networks, radio, outdoor, and internet advertising.  Unmeasured spending estimates direct promotion through internet paid search, social media, etc.

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In David Meerman Scott’s New Rules of Marketing and PR, Scott is very clear about the shift from sales and interruption advertising to content rich marketing in the increasingly digital market. In particular he writes, “Marketers must shirt their thinking from mainstream marketing to the masses to a strategy of reaching vast numbers of undeserved audiences via the web” (Scott, 46).  When looking at Disney’s total spending on advertising, it does not look like they are following the new rules of marketing.  Since 2009, the advertising spending has even gone up, and largely remains the same to today.

BusinessInsider.com records the Walt Disney Company as among, “The 12 Companies that Spend the Most on Advertising”.  This website records Disney’s total advertising spending in 2013 as 1.93 billion dollars and breaks it down as such:

TV: $273 million

–          Magazines: $60 million

–          Newspapers: $92 million

–          Internet: $37 million

–          Other: $1.46 billion

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The Walt Disney Company continues to be a power house in the family entertainment industry today.  Its net income has continuous increased since 2009 through 2013.  Do you think that with its continued spending on advertising in our increasingly digital market, the company will suffer, or end up changing its’ advertising spending habits?

 

Content Marketing with The Mouse

The Walt Disney Company relies on rich content marketing to drive its total revenue.  Throughout each of the five different segments of this powerful organization, the overall marketing strategy relies on providing consumers abundant content right when they are looking for it.  The five segments of the Walt Disney Company include Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive Media.

In The New Rules of Marketing and PR, David Meerman Scott explains that due to the recent change in communication platforms to a digital medium, there is a new set of guidelines for marketers to follow in order to be successful.  This significant transition has been extremely influential in the marketing realm and has increased the importance of providing potential customers with quality content.  In the new rules of marketing and PR, Scott writes, “Instead of causing one way interruption, marketing is about delivering content at just the right moment your audience needs it” (Scott, 36).  Disney’s advertising has followed the new rules and currently focuses on providing content over consumer interruption.

Bob Iger, the company’s current CEO has specifically made it a priority to revert back to the core competency of creating entertainment for children and families through all five of their corporate divisions.  The Walt Disney Company’s dedication to content marketing can be seen with the release of any of their new movies.  When a new movie is released, the Walt Disney Company benefits from box office sales, but also continues to develop the characters and related commodities extending the value of its content.  For example when Disney’s Frozen was released, there were character action figures, children’s bedding, clothing, a sing-a-long version of the movie, DVD and blue ray releases, mobile phone apps, video games, and even announcement of the possibilities of a Broadway show, Frozen on Ice Performances, and even a Frozen ride at Walt Disney World in Florida.

Disney's Frozen

 

By extending the content of one film throughout all of the Disney networks, the company is able to maximize its total value.  This example of content marketing is representative of Scott’s new rules of marketing and PR, and provides a model marketing strategy for overall success.

Greetings!

Hello and welcome to my blog dedicated to taking a look at the Walt Disney Company and its’ use of digital marketing in an increasingly digital age of communication.  This case study will help readers to understand how this specific company is applying or disusing concepts of digital marketing outlined by David Meerman Scott in his book, The New Rules of Marketing and PR.  Please comment on posts and engage in this blogging experience with me!

Thanks for reading!

walt disney company