Lato SensuConvergência da Comunicação Prof. MSc. Allan Drost Abril 2012
Sustentare, April 2012 By Allan Drost, M.Sc. International Business Teacher´s notes: Introduction + Module 1 3026 4950sustentare
Name: Allan Drost Biography Age 36 Nationality: Danish Home town: Joiville Civil Status: Engaged with Angela (brasileira) Education: Master of Science from University of Southern Denmark in International Business, English and (Digital) brand building
Biography 2004 – 2009. Working for 3 different internet based companies to establish themselves in the digital marketplace in Denmark – a country with an 91% internet litteracy. Bet365 (Marketing Manager for Scandinavia), today: industry top-3 in Denmark. Betsafe.com: Marketing Director (Today: Sponsor of national football in Denmark, after new legislation!) Expekt.com (Country Manager, Denmark) 2010 – 2012: Key Account Manager within Digital Marketing for one of biggest media houses in Denmark, Fynske Medier Projects: External consultant on Product development and optimizing the commercial potential on www.ob.dk Result: The number of sponsors in the club is higher than ever. Number os visitors on www.ob.dk is 4 times higher than in 2009 Commercial earnings through www.ob.dk is 7.5 times higher than in 2009 The club added the latest new product feature only last year: Club OB, now also charging fans for extra digital goodies – and the fan base is still rising!
Why a course in Convergence in Communication? Because the communication proces is changing... ... all the time! ... today faster than ever! - and if you as a company want to be able to compete in this new reality you need to know whats going on – and act accordingly! This course will give a clear picture of: The new reality of commercial communication All the platforms available – before and now How they are used most efficiently in a commercial context in order to get ahead of the competition Where we are headed and what commercial communication might look like in the future
Course Objective At the end of the course, you will be able to...: Have a complete overview of the development in commercial communication Distinguish between the different types of communication, their advantages and their pitfalls! Know how noise interferes with the communication process – before and today Master the modern lingua of digital communication Know all the pro´s and com´s of the various digital platforms – and put them to use Make informed opinions on how best to evaulate the use of digital media in a commercial context Be inspired through state-of-the-art case material, showing some of the best-practises in the international marketplace
Course Objective In brief, my aim is to... enable each of you to go back and make an immediate difference in your various campanies! Through optimized use of digital communication and – channels! Starting from tomorrow!
Outline of the Course Module 1: Know the Race-track The development in the Communication Process, The Concept and impact of Noise – before and today, Auto Communication, Basic Commercial Communication (B2C) – Case: Adidas: Impossible is Nothing! Module 2: Accellerate ahead of the rest of the field... When communicaion goes bad, Commercial Communication – The ‘New Kind in Class’: C2C, Viral Communication – an Introduction, Case Examples from around the World
Outline of the Course Module 3: Get to know your weapon Online MEP´s in-depth and new channels, including Email- marketing, Display marketing, Search Marketing, Social Media, Mobile Marketing and Affiliate Marketing. Module 4: Know your friends – end enemies... Money talks, Case study, The concept of digital currency, Professional Networks (should they be used commercially) and the Communication Process of Tomorrow Module 5: Start your engines.... Test, Questions and Evaluation
Methodology and Test Method: Presentation The presentation will be based around digital commercial communication. However, it is inevitable that we will touch upon other areas of marketing and branding as well. Case examples Class Discussion A few group assignments Remember: The more you give, the more you receive! Therefore: Challenge me, don´t be afraid to participate and ask questions! Test: You will be presented with a small text giving you some background information on an online-based company The test itself will be 10 Multiple Choice questions, each relating to the company and its situation. You will for each question indicate your preferred answer from 5 different alternatives. The test, like the Entrance Quiz, will be in Portuguese. You will have 1 hour for the test Your final score will be based on your answers in the Entrance Quiz (20%), your Self- Asessment of the Course (15%) and your Test result (65%).
Module 1 Communication – an Introduction Intercultural Communication The Concept of Noise in the Communication Proces The Danger of Auto-Communication!? Difference in companies versus individuals? Basic Commercial Communication (B2C) Case: Adidas: Impossible is Nothing!
Communication roadmap The ’classic’ distinction:One-way communication Interactive communication
Communication roadmap Our hearts (feelings, emotionally based)One-way communication Interactive communication Our heads (logic, fact-based)
Communication roadmap Our hearts (feelings, emotionally based) Community Focus Grassroot / Underground media channels Interactive communicationOne-way communication Individualized FocusEstablished media channels Our heads (logic, fact-based)
Our hearts (feelings, emotionally based) Grassroot / Underground Community Focus media channels 50% de Interactive communicationOne-way communication Desconto!Established media channels Individualized Focus Our heads (logic, fact-based)
Different types of Communication The Simple ones: One-way Communication < Only one way One or more receivers No feedback Very often the sender is unknown to the receiver, due to the lack of interaction Examples?
Different types of Communication The Simple ones: Mass-communication < >>> A form of one-way communication One sender, but a big, unknown number of receivers Feedback is possible but will not be acted upon Examples?
Different types of Communication The Simple ones: Two-way communication < > Between two people Both act as sender and receiver Sender gets immediate feedback from receiver Examples?
Different types of Communication The Simple ones: Multi-communication <<< >>> A lot of senders and a lot of receivers Takes place where groups of people form a community All are active in the communication process, though not at the same time Examples?
Different types of Communication The Simple ones: One-way Communication < Only one way One or more receivers No feedback Very often the sender is unknown to the receiver, due to the lack of interaction Examples? Mass-communication < >>> A form of one-way communication One sender, but a big, unknown number of receivers Feedback is possible but will not be acted upon Examples? Two-way communication < > Between two people Both act as sender and receiver Sender gets immediate feedback from receiver Examples? Multi-communication <<< >>> A lot of senders and a lot of receivers Takes place where groups of people form a community All are active in the communication process, though not at the same time Examples?
Different types of Communication Interculturel Communication
Different types of Communication Interculturel Communication Definition: Communication between too parties with different cultural backgrounds
Different types of Communication Interculturel Communication Communication between too parties with different cultural backgrounds Influencers: Our own actual identity – who we are... Our beliefs about the other persons identity (ies) – who we think he / she is The other persons beliefs about our identity – who he / she thinks we are The other persons actual identity – who he / she is Noise (Internal, External or Semantic factors which influence the communication process)
Noise in Communication The goal of all communication: Understanding!
Noise in Communication The goal of all communication: Understanding! Anything which interferes with that goal: Noise!
Noise in Communication The goal of all communication: Understanding! Anything which interferes with that goal: Noise! Noise can be divided into 3 categories: Internal: Thoughts or feelings which interfere with communication! External: Anything outside of the communicator that distracts him or her during communication! Semantic: Reactions aroused unintentionally by symbols or words used by the sender causing the listener to focus on na unrelated topic! http://www.wisc- online.com/Objects/ViewObject.aspx?ID=OIC2501
Different types of Communication Auto-communication When sender and receiver is the same person or entity Can happen as well between individuals as between organizations In a commercial context when the company um- intentionally communicates with itself about itself! Where other forms of communication gives the receiver new information, auto-communication does not! Examples?
Commercial types of Communication B2B: Business-to-Business Example: Media buyers, Advertising Companies B2C: Business-to-Consumer Example: Retailers, Lawyers, Handymen, etc. C2B: Consumer-to-Business Example: Fans of a football-club C2C: Consumer-to-Consumer Example: Social Media
Commercial Key´s to success A well-structured and -balanced organization A strong brand Market insight Financial stability ... Did we forget anything...?
Commercial Key´s to Success YES! Clear communication – accross channels!! Why? Because communication influences everything the company does! When we educate our staff internally When we advertise the brand When we interact with our clients When we go head-to-head with our competitors When we make a budget – and evaluate it
Adidas – impossible is nothing! Market situation in September 2003 Heavy investment in partnerships with high-profile athletes had not been successful at all Company found itself only in 4th spot on the US market behind market leader Nike, Reebok and New Balance Total sales in the US had dropped 16% in first nine month of 2003 alone. Having secured the sponsorship rights for the summer Olympics 2004, they during that year lçost those same rights for the Summer Olympics 2008 – to Nike!
Adidas – impossible is nothing! So, what to do... Adidas chose to set aside a total of US$ 50 mio. for a brand marketing campaign – the largest ever undertaken by the company! Clearly defined target group (12-24 year old consumers, engaged in sports) Shift in channels (from offline and TV to also include the internet). This was based on market research showing that 18- 34 year olds spend more time behind the computer than they do watching TV! Key message: Impossible is nothing – but you decide! Campaign was defined by Adidas as a “fully integrated communication campaign”
Adidas – impossible is nothing! How was the campaign carried out?: Campaign starred boxing legend Muhammed Ali going on one of his legendary long runs – alongside present day sports-stars, such as footballers David Beckham and Zinedine Zidane, NBA star Tracy Mc Grady etc, all dressed in Adidas merchandise. Meanwhile Ali´s daughter Hannah narrrated the story, evolving around the brand idea... Let´s have a look at how it kicked off
Adidas – impossible is nothing! How did they expand the communication: Later, footage showed Ali sparring in the ring – against his daughter, Hannah (also a boxer) After initial launch in some of the biggest American cities, they went national with the campaign. By this time, ads were then rolled out across the web and teased for in print advertising. Also, they crossed over to other sports, such as running (featuring Haille Gibresselassie) and tennis (featuring Justine Henin-Hardenne). They encouraged 20 stars of today to tell their personal “Impossible is nothing - story” – as such Beckham got his own ‘story’ in the Adidas universe.
Adidas – impossible is nothing! How did they expand the communication: Later, footage showed Ali sparring in the ring – against his daughter, Hannah (also a boxer) After initial launch in some of the biggest American cities, they went national with the campaign. By this time, ads were then rolled out across the web and teased for in print advertising. Also, they crossed over to other sports, such as running (featuring Haille Gibresselassie) and tennis (featuring Justine Henin- Hardenne). They encouraged 20 stars of today to tell their personal “Impossible is nothing - story” – as such Beckham got his own ‘story’ in the Adidas universe. Lastly, visitors to the Adidas homepage were encouraged to give their own ‘Impossible is Nothing’ story – awarding prizes to the best stories
Adidas – impossible is nothing! How did they expand the communication: Later, footage showed Ali sparring in the ring – against his daughter, Hannah (also a boxer) After initial launch in some of the biggest American cities, they went national with the campaign. By this time, ads were then rolled out across the web and teased for in print advertising. Also, they crossed over to other sports, such as running (featuring Haille Gibresselassie) and tennis (featuring Justine Henin-Hardenne). They encouraged 20 stars of today to tell their personal “Impossible is nothing - story” – as such Beckham got his own ‘story’ in the Adidas universe. Lastly, visitors to the Adidas homepage were encouraged to give their own ‘Impossible is Nothing’ story – awarding prizes to the best stories This last concept had viral potential, though never quite reached that level – can you see why!?
Adidas – impossible is nothing! How did the competition respond? As a direct answer to the Adidas campaign, Nike, in 2004 launched their ‘What If’ campaign. Like Adidas, Nike in an attempt to hold on to their 37% market share lead, used professional athletes to convey their message. However, rather than showing the athletes doing what they did best, the Nike ads depicted athletes participating in sports other than their specialty. For instance, Lance Armstrong was seen in the boxing ring, rather than on the bike, Serena Williams playing volleyball, Marion Jones doing gymnastics, Michael Vick playing Ice Hockey, André Agassi playing baseball, etc The key message: You can do anything you want – and succeed! Interestingly, the brand idea is pretty close to the one developed by Adidas. Nike later developed on the concept, and the year after, in 2005, they launched their´’Just Do It’-campaign, which still survives as of today! Also Reebok (2nd in US market share in 2003) had to do something, so in 2004 they launched their ‘Outperform’ campaign, which according to the company allowed them to ‘educate consumers about our heritage in performance’. In Latin-America this campaign saw the use of amongst others pop-singer Shakira
Adidas – impossible is nothing! Discussion topic: Was the campaign a success!? Yes / No!? Why / Why Not!?
Adidas – impossible is nothing! Was the campaign a success!? YES! The campaign was a huge success! Some facts: As a result of the campaign the sales took a positive turn, from down 16% in 2003 to up 11% in 2004 In the campaign period, Adidas went from a 10% US market- share and up to almost 18% in late 2004 – an 80% increase! On the day of launch of the ‘Ali and Laila’-campaign on the Yahoo! Homepage, there was 125% increase in the search term ‘Adidas’ – highest number of search requests were from men, aged 13-17 – in line with the target group! The campaign won the Gold Lion Award at the International Advertising Festival in Cannes, France
Sustentare, April 2012 By Allan Drost, M.Sc. International Business Teacher´s notes: Module 2 3026 4950sustentare
Module 2 When branding backfires... Commercial Communication – The ‘New Kid in Class’: C2C Viral Communication – an Introduction Case Examples from around the World Nokia, Finland: When Navigation Turns From Boring To Fun! Telecom, UK: Life´s for Sharing! Tnuva, Israel: Sweet Remedy for Broken Hearts! Parents of Child Road Victims, Belgium: Let It Ring! Antwerp Zoo, Belgium: Everybody Get´s Pregnant! Merzedes Benz, Germany: Invisible to the Environment Angry Birds, US & Outer Space: Space Game
When branding backfires… Obviously, there has also been a few mishaps in the world of branding over the years – including some from some of the very heavy guys… A few things which you don’t want to mess with: Sex Everyone claims that ’sex sells better than anything…’ As it turns out, insetad, more often than not, people just get the wrong idea and the campaign backfires Religious beliefs Using this in a commercial context is an obvious ’no-no’, as the target group will see it as invasion of their personal space rather than be inclined to purchase the product advertised. Politics You are likely to please a few, but most people out there won’t agree with you. Also, public opinion changes over time – if your brand message changes with it, you will be perceived as not very innovative and without an opinion of your own. Race Noone likes racial prejudice – all attention will on you – and not on your brand message! Let’s have a look at a few examples of campaigns that didn’t go as expected….
Antonio Frederici Out to lauch a new product in Italy: Gelati Italiano Who might eat Ice cream? Well, many of us, but one of the stereotypes out there would have to be pregnant women… Also, in depicting the product, they wished to display the fact that they were launching on the Italian market – so they used one of the core symbols of The Vatican: a nunn… Key message and pay-off of the advert: ”Imaculately conceived… Ice cream is our religion!” Let’s look at what they tried…
Antonio Frederici Out to lauch a new product in Italy: Gelati Italiano Who might eat Ice cream? Well, many of us, but one of the stereotypes out there would have to be pregnant women… Also, in depicting the product, they wished to display the fact that they were launching on the Italian market – so they used one of the core symbols of The Vatican: a nunn… Key message and pay-off of the advert: ”Imaculately conceived… Ice cream is our religion!” Subsequently, the ad was banned in several national markets bye advertising whatch-dogs, claiming that the ad was offensive to Catholics!
Sony – Playstation White Out to launch a new product: Playstation White However they forgot to put attention to the product...
Wang Computers Wang Computers – promting the pay-off ‘Wang Cares’ To people in the UK…Nothing wrong with the imagery here, but the word-playgets funny if you say it a few times in English…
Sony - PSPSony tried to tap into the online youth-market by trying to create a viral amateur-feel campaign for their new PSP…The story:The ad agency Zipatoni made a terrible video of some guy rapping about how hewanted a PSP for Christmas and posted it on Youtube along with links to a website.Afterwards they added fake comments to the Facebook site along with ‘hip’ slangfilled conversations, such as this one:
Sony - PSPPERSON 1: “Here’s the deal::: i (charlie) have a psp. my friend jeremy does not. buthe wants one this year for xmas.”PERSON 2: “So we started clowning with sum not-so-subtle hints to j’s parents thata psp would be teh perfect gift. we created this site to spread the luv to those like jwho want a psp!”
Sony - PSPPERSON 1: “Here’s the deal::: i (charlie) have a psp. my friend jeremy does not. buthe wants one this year for xmas.”PERSON 2: “So we started clowning with sum not-so-subtle hints to j’s parents thata psp would be teh perfect gift. we created this site to spread the luv to those like jwho want a psp!” What’s the problem here!?
Commercial types of Communication B2B: Business-to-Business Example: Media buyers, Advertising Companies B2C: Business-to-Consumer Example: Retailers, Lawyers, Handymen, etc. C2B: Consumer-to-Business Example: Fans of a football-club C2C: Consumer-to-Consumer (NB: new + still developing!) Example: Social Media
Viral Communication Potential to be The ´King´of successful Marketing / Communication - or the opposite (whatever that is...) Applies to the notion that a good idea may spread like a virus if used in the right context at the right time... Idea: To ‘infect’ people with high Social Networking Potential (SNP) and get them to spread the message, thereby ‘infecting’ others. Goals: To inspire people enough for them to want to inspire others in a short period of time To boost product sales To create or enhance brand awareness ... Typically both these things will happen Risk factors: Usually it´s very expensive – unless you have the right idea... Difficult to control as it spreads through´Word-of-Mouth´(WOM) Let´s see a few examples:
Nokia:When Navigation turns from boring to fun! When people think about Navigation, they didn´t use to think about Nokia – Nokia wanted to change that! Normally, navigation is just a matter of getting from A to B – not very sexy, nor very fun! Instead, Nokia wanted to turn navigation into something social – a channel where you could share your favorite places and then show others in the right direction... Let´s see how they got on
Nokia:When Navigation turns from boring to fun!
Nokia:When Navigation turns from boring to fun! Awareness-campaign Intergrates Outdoor, Mobile, Social Media, Email and Web Results: Nokia experienced highly increased awareness of their mobile Navigation systems Amount of users of Nokia´s navigation systems increased 129% (main objective) In some markets visits to the campaign website exceeded targets by 1500% Visits to product pages (point of sale) soared 270% over targets in select major markets. The campaign has won a great number of international awards at International Advertising Festivals in both Cannes and New York.
Telecom UK – Life´s for sharing Telecom had the idea of giving people an unexpected experience which they would want to capture and share with others. The combination of spontanity and being in a public space would force people to capture the event with the only thing which people are known to carry at all times – their mobile phones. So, the event needed to be long enough so that people would actually gain interest and something out of the ordinary to ensure viral potential... While watching the advert, I would like you to imagine being present in London at the time of the event..
Telecom – Life´s for sharing Results: Awareness campaigns Videos uploaded to youtube Huge viral potential More than 11. mio displays on Youtube Close to 50.000 likes And this is on top of all the ‘buzz’ they gain from it out there...
Tnuva´s Chocolate Dessert: Sweet Remedy for Broken Hearts You don´t need to be a big global player to go Viral Tnuva, a chocolate dessert company joined forces with na online dating site to give people something to talk about, thereby promoting their new chocolate dessert... Let´s see how they got on
Tnuva´s Chocolate Dessert: Sweet Remedy for Broken Hearts Awareness + Sales Campaign Results (if they are known) Relatively big viral potential Sales of Tnuva chocolate desserts rose 21% the following year Tnuva went from 3rd in marketshare in 2010 to current marketleader
Belgium: Parent´s of Child Road Victims: “Let it Ring” In Belgium, over several years there had been an increase in traffic accidents involving drivers busy with their mobiles while driving. Because of this, OVK came up with an idea that brought attention to the issue... They knew that if they could get the public to warn eachother about the dangers, it would substantially increase the effect... So they built a campaign site (www.letitring.be) where people could send videos to their friends. By indicating a friends email adress and phone number, the friend would receive a personalized email, featuring him/herself with a surprising outcome... Let´s see how they got on
Belgium: Parent´s of Child Road Victims: “Let it Ring”
Belgium: Parent´s of Child Road Victims: “Let it Ring” Clearly, this is an awareness campaign In fact there is no sale intention here at all – not even down the line... Results (if they are known) However, the campaign reached its objective: Thousands of people became aware of the campaign within just a few weeks Newspapers and blogs helped to spread the message Most importantly, the campaign had na easy-to-remember payoiff: Let It Ring! Also, the campaign won several awards at the Cannes Festival 2009 (Promo Gold, Direct Gold, Media Silver)
Antwerp Zoo Everybody gets pregnant... Antwerp Zoo needed to turn a declining number of visitors around So they decided to involve the public in an event, hoping for a longer- term payoff They went for ‘think smart’ instead of ‘think big and expensive’! The pregnancy was announced with the real ultrasound of the baby elephant launched on a big screen in the centre of the city They encouraged people to come with name suggestions They kept people informed about the progress of the pregnancy through a special campaign site They gave people the option to involve themselves and their friends on Facebook Everyone got a text message when labour began And the birth was streamed live on the Internet.. Let´s see how they made everybody a little bit pregnant...
Antwerp Zoo Everybody gets pregnant... Sales Campaign – get people back in the Zoo Results: 300.000 more people visited the zoo to see ‘their’ elephant, compared with the year before... More than 559.000 watched the livestream of the birth of the baby elephant on the internet Biggest number of Belgiums ever to watch a live event together on the internet... The website welcomed more than 850.000 unique visitors during the campaign period (total population in Belgium: 11 mio).
Merzedes Benz: Invisible to the Environment Campaign objective: Highlight the new Merzedes ability to produce zero emissions and protect the environment The car was covered in several mats of LEDs on the driver side of the car and mounted with a digital SLR camera on the opposite side of the vehicle The camerta then shoots video on the passenger side of the car and the video is displayed in real time on the driver side of the automobile. As the car moves along the road, the LED lights periodically fade to black and display a text advertisement highlighting the main campaign objective to let the public know what is going on Let´s see how they got on...
Mercedes Benz: Invisible to the Environment Awareness Campaign Results: Reached the objective, as mass media in Germany made a big fuzz about it during the campaign period. However, is the world ready for hydrogen powered automobiles? Production costs are still unrealistically high Practical implications with fitting for instance gas-stations with the necessary equipment has not been tackled properly yet
Angry Birds: Space Game Rovio, the developers of Angry Birds, joined forces with NASA to launch their newest development of the game: Angry Birds Space They did by physically showing how zero gravity influences the trajectory of an object being catapulted in a certain direction – the whole idea of the angry birds game, which is downloadable to smartphones, Ipad´s etc. Oh, and they did it from outer space!
Angry Birds: Space Game Awareness Campaign Results: Huge awareness! Particulary as NASA implemented some encouragement for creative ways of learning about math and physics
Discussion Topic Everybody agrees that viral communication is a good idea. It encapsulates all the best features of modern communication. It has strong cross-channel appeal It has a high degree of involvement It is spread exponentially by the target group itself But where does it actually belong in our communication roadmap (if anywhere?)
Communication roadmap Our hearts (feelings, emotionally based) Community Focus Grassroot / Underground media channels Interactive communicationOne-way communication Individualized FocusEstablished media channels Our heads (logic, fact-based)
Sustentare, April 2012 By Allan Drost, M.Sc. International Business Teacher´s notes: Module 3 3026 4950sustentare
Module 3 Online Digital Advertising Platforms in-depth Newsletters, E-mail Marketing Display, Banner Marketing, How to make it work Search Marketing, including SEM and SEO Affiliate marketing, the ‘Dark Horse’ in Business
Email-marketing / Newsletters One of the oldest types of digital marketing - yet still perceived by many to be very effective – high ROI! Works both in a B2B- and in a B2C context ... But noise is getting a bigger and bigger challenge! As such, we receive 61% more emails today than we did only 3 years ago – and the number is rising!
Email-marketing / Newsletters How does it work? Consider the objective – what do you want to achieve? Permissions Timing Avoid using ‘turn-offs’ Unsubscribers
Email-marketing / Newsletters How does it work? Consider the objective – what do you want to achieve? Usually some kind of conversion or to build loyalty! Achieved through Strong CTA´s (Call-To-Actions) Personalized 1-to-1 communication Knowledge of receivers preferences - but NOT through numbers! Well, not always, anyway! ;-)
Email-marketing / Newsletters Facts: Time consumption on Emails on average Number of emails received by the average email user: 147 Amount of time spent on emails per day (average): 2.5 hours Number of emails deleted without further notice: 71 (48%) This takes just under 5 minutes... Of these 80% are deleted after less than 3 seconds! Number of emails received per day that requires substantial work (average): 12 (8%) Time consumption, spent on these email: 90 minutes per day! So 8% of the emails we receive take up 60% of the time we spend on emails every single day... Number of emails written per person per day (average): 40
Email-marketing / Newsletters How does it work? Permissions Opt-in and Opt-out Quality or Quantity? Organic Permissions vs Paid Permissions Organic: Collected through own channels = higher quality Much higher quality – up to 60% better response rates... Paid: Strong in numbers Fast way of getting through to targetgroup Quality of subscriber-list Single opt-in or double opt-in Bounces Unsubscribers
Email-marketing / Newsletters How does it work? Timing When do people actually read emails? The first thing people do in the morning is often to open their email – you want to be in their inbox by then! People are more prone to check their email after breaks and after finishing tasks People do not check their email before going home in the afternoon If the email gets opened but not dealt with within 60-90 minutes, the conversion rate drops dramatically! When should you send? Before work (5:00 – 6:00 or during lunch (12:00 – 13:30) If necessary, make use of the ‘Send Later’ feature – this will increase your conversion rate heavily! Do NOT send commercial emails late in the afternoon – they will have little or no effect!
Email-marketing / Newsletters How does it work? Avoid using ‘turn-offs’ ‘Turn-offs’ defined as words in Subject line known to generate little or no response. Examples: Confirm, Join, Assistance, Speaker, Press, Social & Invite ‘Turn-ons’: words known to generate highest conversion; Examples: Apply, Opportunity, Demo, Connect, Payments, Conference & Cancellation.
Email-marketing / Newsletters How does it work? Unsubscribers Mandatory to include a clearly visible ‘Unsubscribe’- button Unsubscribers are not necessarily a bad thing! Again, focus on quality rather than quantity Gives you a chance to engage in dialogue with your followers rather than just to lose them... Perhaps defer them to Social Networks?
The Kodak Case For years, Kodak were struggling with adding subscribers to their email database. Let´s have a look at how they used to generate their permissions...
The Kodak Case - How Kodak decided to drastically alternate their sign-up page, adding: Clear definition of what subscribers gained by opting in Clear CTA & offer / benefit! Simplified indication of address Show examples of existing emails Include privacy-policy and –text! Change Submit to Subscribe – and remove ‘Clear’- button! Larger button ... And the result:
The Kodak Case - Result With fewer fields, more simplicity and clarity in the communication, Kodak now gave followers a clear reason to sign up! Once enlisted, you received a welcome email – simple end effective, and obviously with A professional subject line (You made the list!) links to activities on Social Media (Facebook, Youtube and Twitter) Included in every send-out: An invitation to join Kodaks ‘Shoot Film´s’ Youtube channel Increase in Newsletter subscribers: 33%! Increase in followers on Youtube: 53%! The cost? Some development costs, but otherwise just clarity and insight!
Online display marketing Also called banner-marketing Typically a banner-campaign or other types of marketing where visual and textual content are connected. Many marketers claims that the banner is dead – killed by google and search marketing... This is not true! Banner advertising have some strong points that search marketing can´t fullfill – and vice verca. This is the main reason why the two types of marketing complement each other so well It is supported by the fact that 83% of marketers included banner marketing to their media plans in 2011 – in spite of search marketing going through the roof that same year!
Online display marketing Strong points: Can create knowledge and coverage in the market = branding! Can be targeted relative to consumer behavior = branding and targeting Gives strong creative- and involvement-options = branding and ‘dwell’ (time spent with the banner = dwell time) Easily controllable with possibilities for immediate change in message or content if necessary Possibility to scale impact up or down, depending on commercial needs Effective way to create brand knowledge, which over time will lead to bigger number of direct searches.
Online display marketing KPI´s (Key Performance Indicators): Important to note what the banner is designed to do Branding Dwell time / Engagement time (The amount of time spent with the banner) Is optimized through cool content and proper context! Gives higher long-time value to the advertiser Prolongs product life cycle and inspires added loyalty with consumers!
Online display marketing KPI´s (Key Performance Indicators): Important to note what the banner is designed to do Selling Conversion & click rates ... Are old school! If the banner is measured only through the above, the banner will die – losing the battle to google which is able to conduct much more targeted traffic, resulting in higher click-rates However, every media buyer out there speaks about the above, since they know that this is a way to get the price down! Just remember: the fact that you as a marketer are even discussing the price is an indication that the other party is interested!
Online display marketing KPI´s (Key Performance Indicators): Important to note what the banner is designed to do Branding vs Selling: The oldest paradox in business If you are negotiating with a media buyer, be sure he will come at you with the argument that the price should be lower since he can get more relevant and direct traffic through google and other forms of search marketing! What is your counter-argument!? Answer: That the banner is the best possible ressource to ensure high dwell-time, adding brand value, which google cannot deliver on.
Online display marketing How to sell banner-advertising, given the pressure from search marketing and google! Remember: Content is KING! It is through the use of the branding option in the graphic parts of the banner, that the banner survives! This is something that search marketing cannot provide! Contextual targeting Make the banner appear in the relevant context Best example of someone missing the point here was when an American Cruise company displayed banners selling its trips on the page reviewing the movie ‘Titanic’... Re-targeting: The banner is targeted to consumers based on their previous internet actions, in situations where these actions did not result in a sale or conversion.
Online display marketing Predictive targeting or Behavioral targeting Method: Measurement: A cookie is saved on computers of all users of a portal or marketing network. The cookies indicate how often the users have visited certain sites, links they click on, searches they make and the things that they interact with. This data is used to create a profile of the user.. Surveys: A random sample of users is polled on their demographics, interests and lifestyle. Publishers may now use this data to create defined audience segments based upon visitors that have similar profiles Projection: This information is overlaid - online and in real time - onto the entirety of the user group. When visitors return to a specific site or a network of sites using the same web browser, those profiles can be used to allow advertisers to position their online ads in front of those visitors who exhibit a greater level of interest and intent for the products and services being offered.
Value of banner advertising The price of a banner campaign may be calculated in several ways – prices may vary depending on context (but remember: content and context is king!) CPM Cost-Per-Mille, or cost per thousand impressions. Not performance based Example: CPM 20 means that 1000 impressions of a given banner costs 20 R$ Total price for 300.000 impressions at CPM 20: 300.000 x 0.020 = 6.000 R$
Value of banner advertising The price of a banner campaign may be calculated in several ways – prices may vary depending on context (but remember: content and contaxt is king!) CPC Cost-Per-Click Price based on number of clicks the campaign has generated Relative risk for media outlet of generating free marketing (if banner is designed for branding- rather than selling purposes) Example: CPC 3 means that buyer will pay 3 reais per click that the campaign generates. Average click conversion for banner campaigns vary between 0.1% - 0.5% (meaning that 0.1 – 0.5% of all banner impressions will result in a click) CPC of the campaign from before, based on average clickrate: 300.000 impressions resulting in 0.3% x 300.000 = 900 clicks x CPC 3 = 2.700 R$
Value of banner advertising The price of a banner campaign may be calculated in several ways – prices may vary depending on context (but remember: content and contaxt is king!) CPA Cost-Per-Acquisition (also called Cost-Per-Lead) Highly performance-based Relative risk for media outlet of generating free marketing (if banner is designed for branding- rather than selling purposes) Example: CPA 35 means that advertiser pays 35 R$ for each new customer generated through the campaign Best option for advertiser – as it is the one with the lowest risk for him (he only pays if customer generates revenue). From our example, if 10% of the 900 clicks turned into sales at CPA 35, the price of the campaign would be 900 x 10% x 35 = 3.150 R$
Value of banner advertising Various other price structures exist, including: Fixed price a fixed price is negociated before the campaign starts) CPV (Cost-per-Visitor / Cost-per-View) Advertiser pays for the delivery of a targeted visitor (or a unique user view) on the advertisers website CPS, PPS, CPO are all equivalent to CPA ECPM: Effective CPM When CPM is calculated based on other performance-based payment method, for instance CPC. digg-ads (banner advertising meets Facebook!) Next generation, the number of likes or dis-likes the advert gets decides the price. Exists so far only within diggs own community Can it survive in ‘the real world’?
Search Marketing Generally, two forms of search marketing exist: SEM & SEO SEM = Search Engine Marketing Through Google AdWords Promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization as well as through advertising (paid placements, contextual advertising, and paid inclusions). SEO = Search Engine Optimization Adjusting or rewriting website content to achieve a higher ranking in search engine results pages for that particular site
Search Marketing Known Search Marketing vendors: Google, through Google Adwords (Market leader) Yahoo! Search Marketing Microsoft AdCenter Objective: To optimize the website of an advertisor in order to achieve the highest possible ranking in internet searches conducted by possible customers.
Search Marketing How to make it work: SEM is not difficult - if you pay, you play! However, obviously the trick is to identify the keywords which have the highest potential for your particular site! SEO is more tricky, since this is an optimization tool rather than a commercial tool. Generally advertisers agree on a top-5 list for making your site more attractive in terms of SEO: 1. Focus on key-words in anchor-texts from external links 1. Meaning: On your site, for instance link to search engine optimization here instead of link to search engine optimization here 2. The amount and the quality of external links 3. Diversity between the websites which link to your site 4. The use of search words in the page title (for every single page on your site!) 5. Credibility of domain (available through, for instance Google Page Rank) Remember to also optimize pictures on sites – an overlooked feature with many!
Search Marketing Google´s latest product developments: In 2011 they launched Google +1 Google´s equivalent to Facebooks ‘like-button’ First step towards content-sharing between friends – of many believed to be Facebook strongest point Now, they developed the concept Google+ Google+ Circles: A community between you and selected friends, where you decide what information to share with which friends – and when! Google+ Sparks: A new search function where you may indicate areas of interest which will generate a list of websites which you may be interested in.
Search Marketing However, they still didn´t crack the code! Although they never will stop to tell us that they did! Google´s dilemma: They claim to out-perform display marketing. However, research shows an increase in searches on google for specific brand-names of up to 50% following a banner- campaign – branding or selling. They pride themselves in performance and numbers (conversion), but they don´t have viral potential, like for instance Social Media.
Affiliate Marketing Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliates own marketing efforts In other words, the business pays other people to do their work for them!
Affiliate Marketing Four core players are included: The brand (also known as retailer or ‘merchant) The network (that contains offers for the affiliate to choose from and also takes care of the payments) The affiliate (also known as the publisher) The customer The market has later grown in complexity to warrant a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors.
Affiliate marketingThe merchant The affiliate Network of Customers Commission 35% 20% 15% 10%
Affiliate Marketing High degree of Convergence, as: Affiliate marketing overlaps with other Internet marketing methods to some degree! Why? Because affiliates often use regular advertising methods, including paid SEM (typpically PPC campaigns), SEO, e-mail marketing, and display advertising. Also, affiliates sometimes use less orthodox techniques, such as publishing fake reviews of products or services offered by a partner. Affiliate marketing is a very overlooked area – doesn´t get a lot of respect in the marketplace – but it should, since the compensation methods are optimal and represent little or no risk to the marchant (the brand).
Affiliate Marketing Revenue Models: Revenue Share: Approximately 80% use this model CPA: Used by approximately 19% CPC or CPM: Used by the remaining affiliates (about 1%) Multi-tier system (only exists in some programs): Commission is distributed into a hierarchical referral network of sign-ups and sub-partners In practical terms, publisher "A" signs up to the program with an advertiser and gets rewarded for the agreed activity conducted by a referred visitor. If publisher "A" attracts publishers "B" and "C" to sign up for the same program using his sign-up code, all future activities performed by publishers "B" and "C" will result in additional commission (at a lower rate) for publisher "A"