Published on February 2, 2009
Customer Futures How Digital Is Changing The Marketing Landscape 19/6/08
How Digital Affects All Business Analysis 1. Evolving market place 2. Audiences online Complication 3. Changing customer 4. Marketing response Solutions 5. Rules & Tools 2
Interactive @ Ogilvy The largest digital network in the world 3
Digital Is Not A Discipline… It is A Specialism Within A Discipline PR ADVERTISING DIRECT RETAIL ACTIVATION DIGITAL 4
1. Evolving Marketing Place a) Marketing under pressure, b) What marketers are saying, c) What marketers are doing, d) Key reasons why,
1a Traditional Marketing Methods Will No Longer Work McKinsey “The ad industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media, and new technologies, most notably the internet. Consumers have become better informed than ever before, with the result that some of the traditional methods of advertising and marketing simply no longer work.” 6
1a New Marketing Channels Explosion 7
1a New Marketing Channels Explosion McKinsey, Investment Marketing 8
1c. Real Indicators: What are Advertisers Doing? Google’s Ad & Search revenue in the UK ($803 UK Digital Ad Revenue will exceed print in million Q1) will exceed ITV in 2008! 2008 The value of European online marketing will more than double from €7.5 billion in 2006 to more than €16 billion in 2012, 18% of total media budgets. Forrester July 12, 2007 9
1d. Why: Online Advertising Drives Measurable Action Cancer Research UK Banner Campaign Viewed Impressions Ad £1.8 37 million CPM – 0.08% CTR - Arrived £2.26 29,949 CPC – 3. 51% CTC - Action £74.20 (vs. £90 Target) 914 CPA – £60.32 Cash/£58.3DD ARPU - £ Year 1 £17,953 Cash 0.71 – Year 1 ROI – £42’630 DD £ Over 5 Years 2.90 – Year 5 Donated £231, 103 ROI – 10
1d. Why: Online Advertising Builds FMCG Brands 100 Control 5.9% Exposed 80.3 75.8 80 9.0% 5.9% 58.1 Percent 60 33.7% 53.3 47.5 50.3 44.4 107% 40 33.2 33.2 16 20 0 Brand Awareness Ad Recall Message Brand Purchase Intent Association Favourability 11 Source: Dynamic Logic MarketNorms-EU-FMCG, data through June 30, 2004; N=33 campaigns, n=25,273 respondents
1d. Digital Fits In All Areas of The Purchase Cycle 12
1d. Why: “The Internet is the Viagra of big business.” Jack Welch American Express Q2 Financial Presentation 13
2. Your Audience Online a. Representative Of Population b. Advertising Lagging c. Highly Connected d. Changing Uses
2a. Audience Online Is Representative Of Population Media Consumption Overall Media Consumption By Time Online multiple times (red) Women (white) overtook Online one (white) Men (red) online last year 15
2b. Consumers Ahead Of Advertisers 16
2c. Highest Internet Penetration in Europe Highest Internet Penetration in Europe Highest Broadband Penetration in Europe 17
2d. Changing Uses Last quarter nearly 165 million videostrams have been watched – this translates to nearly 1.9 million videostreams per day! Changing Use Of Medium Grey – 2005 Red – 2007 Banking, buying, MSN-ing and leisure up. Emailing, looking up info regarding products/services or regarding work/education, and downloading software down. This is not due to that these things are done less….. They just are done less in comparison. 18
3. Changing Audience Behaviour a. Create b. Connect c. Collaborate d. Challenge e. Control
3a. Create: The Rise of the ProAm Business Automotive Logistics Entertainment Darth Big Business Micro Business Journalism Advertising A milllion blogs created in NL Sources: 20 Search “blog + name of sector” on Google Search “sector” on Facebook Apps Search “sector +ad” on YouTube
3a. The Codex – UGC; Taken To The Max 21
3b. Connecting: The Power of the Community 42% of Europeans communicate via social networking sites at least once a month – 3rd most popular activities online after search & email EIAA 07 22 Sources: Search “social network + name of sector” on Google Search “sector” on Facebook
3b. Between #1 YouTube & #3 Google 75% of all dutch people who go online are part of one of the social networks. Last year this figure was 55%.... 23
3c. Collaborate: A Global Brain 26% of Europeans share their thoughts on forums EIAA 07 24 Sources: Search “company name” or “competitor’s name” on Getsatisfaction.com, wikipedia.com,YahooAnswers and Linked-In questions
3d. Challenge – Enough Is Enough 25 Sources: Search “company name” or “competitor’s name” on Getsatisfaction.com, wikipedia.com,YahooAnswers and Linked-In questions
3e. Control: “My Media & Me-Messaging” MDs receive between 40 and 60 pieces of DM a fortnight… .. plus email, magazines, exhibition invites, telephone calls - Ogilvy BT pitch research 26 Sources: Generic stats & illustrations
4. Shift In Marketing Required a. Be Social – Listen, Converse, Connect & Collaborate b. Be Useful – Inform, Entertain or Just Look Good c. Be Relevant – Customize, Personalise & Go To Audience d. Be Integrated – Across Channels, Real & Virtual Worlds
Above All – Experiment… NEED TO BE NEED TO CHANGE ACCOUNTABLE TRADITIONAL INNOVATION APPROACHES 28
Investment Marketing Safe Adventure Marketing Objective 29
4a. Listen – People Are Talking About You Online Search Trends Blog Mentions Blog Mentions 30 Sources: Search “company name” or “competitor’s name” on Google Trends, Yahoo answers, Technorati & Blogpulse
4a. Converse - Choose When To Talk Back Cisco Conversation Starwood Lurker Banner 31
4a. Connect – Customers With Each Other Cisco C-Level Community Amex Open SME Community 32
4a. Connect – Customers With Each Other 33
4a. Connect – Workers With Each Other 34
4 a. Collaborate – Co Create Content In The Motherhood 51% lift in unaided brand awareness and 27% lift in purchase intent. Doritos Superbowl 6th Most viewed & best liked commercial cost $12 35
4a. Collaborate – Co Create Product & Experience Starbucks My Idea Dell Ideastorm 36
4a. Collaboration – Harness Your Advocates Comfort Do Da Moves P&G Tremor 37
4a. Help Them To Define Themselves 38
4b. Be Useful Inform - Courtier Entertain – Court Jester Be Sexy – Courtesan
4b. Be Useful –Inform IBM & The Times MBA Podcasts • 94,791 downloads of the MBA podcasts • 6,494 downloads of IBM whitepapers • 4,314 respondents for IBM brand study • Top 10 download for promotion • Top business download for 4 months 40
4b. - Be Useful - Inform Comfort Baby Tips Kraft Mobile Recipes Hellman's Real Food Driving School 41
4b. - Be Useful - Inform 42
4b. - Be Useful - Entertain PUMA 77 Radio 43
4b. Be Useful – Entertain MSFT “Vanishing Point” IBM & CNBC Business of Innovation 45
4b. Be Useful – Look Sexy MTV Knightmare Californian Milk Board – Get The Glass 46
4c. Be Relevant Go to where they are Customise Give them stories to tell
4c. Be Relevant – Be Where Your Audience Are Honda Easyjet Desktop Widget Route Planner Johnny Walker Concierge Economist Mobile Game Ikea Simms 48 AOL Lottery Microsite Awareness of online purchase up by 10% Repeat online purchase up 22%
4c. Be Relevant – Be Where Your Audience Are 49
4c. Be Relevant – “My Product” Nike ID Personal Trainers M&Ms My Flavours 50
4c. Be Relevant – “My Product” My Muesli Kleenex Photo Boxes Pengiun Design Your Own Covers 51
4c. Be Relevant - Make Them Part Of The Comms Addidas – The Rook 240,000 players Each player interacted 20 minutes 52
4d. Integrate Across channels & business Blur the lines
4d. Integrate – Blur The lines 54
4d. Integrate – Blur The lines 55
5. Solutions a. Rules b. Tools
5b. Solutions - Thinking Digital MASTER IDEA/ASSET (TV) Site Banner Email Mobile DM Print 57
5b. Solutions - Thinking Interactive Print Outdoor Ambient Event DM Site Banner Mobile TV Email 58
5b. Solutions - Working Differently 59
5b. Solutions - Focus On Customer Journey Awareness Interest Purchase Repeat Advocacy Audience Mindset Task Message Channel 60
5b. Solutions - Measure Everything Response Metrics Brand Tracking Monitor Conversation Impressions/Viewed Earned media Brand Awareness # Offline & Online media mentions Clicked/Responded Message # Association Arrived Search # Increased Cost per Action searches Brand Conversion Action/Activity Higher search Favourability # results % £ Greater results Purchase share Purchase Consideration # Word of Mouth # posts/blog Repeat mentions Purchase Mentions per # user Likelihood to Advocacy Inbound links recommend # Send to friend 62
5a. Solutions - 6 Golden Rules • Redefine audience – When & Where, Not Who • Risk marketing – 80/20 – Traditional/Experiment • Permanent beta – Ready, Fire, Aim • Turn budgets on their heads – Swop media for production • Don’t panic – Marketing is still marketing • Stand for something – Open source your brand 63
Nike: Now & Then 64
Simple works too… 65
Open Source Your Brand Dove believes the world would be better if women were allowed to feel good about themselves. Dove Campainforrealbeauty.com 66
A Single Unifying Big Ideal - Dove Dove 67
Thank You email@example.com
Appendix a. What is hot or not
Emerging Channels – Temperature Check… Gaming In game product placement favoured over in-game advertising. Game Product Placement developers increasingly looking to partner with brands to help enhance the in- game experience (e.g. Sony Home) As gaming audience increases, and distribution of games on the mobile Branded Games/Mobile Games increases, more brands are exploring developing their own branded games Arguably the hottest trend of the moment…although not easy to define. ARGs Alternative Reality Gaming companies are driving results and winning EMMY’s. Brands are favouring product placement and actual branded games over in- In-Game Advertising game advertising Community Apps (e.g. Facebook), Branded Channels (e.g. Myspace), and Campaign Social Networks Integration (e.g. Nike Artists 1/1) continue to increase Brands continue to developing both closed and open brand Branded Communities communities…seemingly at an increasing rate Increasing activity in this area. Starbuck “My Idea” the latest to gain attention Customer Advisory Panels Still a test and learn proposition Virtual Worlds Hot Warm – heating up Warm – cooling down Cold 71
Emerging Channels – Temperature Check… Mobile On/Off Portal Advertising Off portal favoured. Cross-carrier mobile Networks enabling greater targeting and broader reach. SMS Key component helping to extend, integrate, and make marketing campaigns more accountable WAP Sites Becoming standard and key part of integrated marketing campaigns Applications Downloadable on device micro apps increasing (includes mobile games). Seeing migration from ringtones to more sophisticated applications. MMS/Video Use of video on mobile increasing (sending video, viewing movies, etc.) Payments In use in AP, and NCF pilots in progress in EMEA, but widespread adoption still a ways off Coupons Increasing in use as retailers convert to 2d scanners Digital Dialogue RSS Commonly used. Advertising opportunities within feeds increasing. SMS As use of mobile increases so too will use of SMS as a channel for dialogue with brands (as opposed to email). Target SMS sponsorship opportunities continue to increase. Blogs/Micro-blogging Used most by brands for PR and Customer Advocacy. Seeing evolution to “micro-blogging” (e.g. Twitter) Influencer Marketing Brands recognize importance of influencing the influencers, but B-to-C brands still working out best to identify, reach, and engage key influencers. B-to-B brands (IBM, Cisco, etc.) have been more successful to date. Podcasting/Video Casting Used most by brands for PR and Customer Advocacy. Seeing evolution to “videocasting”. Hot Warm – heating up Warm – cooling down Cold 72
Emerging Channels – Temperature Check… Broadband/Advanced TV Interactive TV has been talked about for a long time, but lack of standards and ITV competing technology remain key hurdles to mass adoption While some brand have had problems (e.g. Budweiser) other large brands Branded Channels continue to invest (e.g. Sony/T. Hilfiger, Mercedes, etc.). Presumably link to key business metrics remains largest hurdle. As IPTV companies like Joost and Veoh gain traction and customers/audiences, IPTV Advertising opportunities for advertiser integration will increase (e.g. BMW/Joost partnership) Watch this space. Many pilots in progress (e.g. Spot Runner) and expect that this Addressable TV will give TV a new lease on life. Branded Content Brands continue to move media dollars to content production in and effort Original Content improve engagement with prospects and customers Collaboration among affinity brands on content, products, marketing programs, Co-developed Content etc. continues to increase in an effort tap into relevant expertise, share costs, and reach new audiences. Brands increasingly providing users with a forum it which create, share, and UGM/CGM distribute their own content Hot Warm – heating up Warm – cooling down Cold 73
Emerging Channels – Temperature Check… Widgets Seeing increase in modules or “gadgets” beings shared across blogging and social networking Web Widgets sites Still hot, but as mobile matures expect to see migration of this functionality from desktop to Desktop Widgets mobile handset Google gadgets ads provide a look into what’s to come… Banner Widgets OOH/POS Improved technology and Increase scalability and interactive billboards, kiosks, etc. Out of Home Digital tactics increasingly being leverage to enhance pre-sale experience or improve the sales Point of Sale experience. Hot Warm – heating up Warm – cooling down Cold 74
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