The march of the marketeers

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The march of the marketeers

  1. 1. The March of the Marketeers Dr. Ian Brown [email_address] <ul><li>This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these action items during your presentation </li></ul><ul><li>In Slide Show, click on the right mouse button </li></ul><ul><li>Select “Meeting Minder” </li></ul><ul><li>Select the “Action Items” tab </li></ul><ul><li>Type in action items as they come up </li></ul><ul><li>Click OK to dismiss this box </li></ul><ul><li>This will automatically create an Action Item slide at the end of your presentation with your points entered. </li></ul>
  2. 2. Outline <ul><li>20 th century marketing </li></ul><ul><li>The digital difference </li></ul><ul><li>Nightmares for advertisers </li></ul><ul><li>The marketeers fight back </li></ul><ul><li>Better ways forward </li></ul>
  3. 3. 20 th century marketing <ul><li>Mass media </li></ul><ul><ul><li>ITV, tabloids, commercial radio </li></ul></ul><ul><ul><li>C4, broadsheets, magazines </li></ul></ul><ul><li>Q1 2002 1.364bn direct mails, up 3.9% </li></ul>
  4. 4. The digital difference <ul><li>Proliferation of channels lead to niche audiences – sometimes unmeasurably small </li></ul><ul><li>Bang per buck of expensive adverts reduced </li></ul><ul><li>Better targetting therefore required </li></ul>
  5. 5. Interactive TV <ul><li>“ Such systems would allow, say insurers to differentiate risk-averse conservatives from high-living show-offs, and then tailor both marketing messages and risk scoring systems accordingly.” – Neal Muranyi, Database Group </li></ul><ul><li>“ There is no privacy. It’s all public relations. It’s all perception.” –Jack Myers, Myers Report </li></ul><ul><li>“ Once you get their credit card number, you can get their whole history. There's no stopping you!” –Bob Williams, Addressable Media Coalition </li></ul>
  6. 6. Web adverts <ul><li>Cheap to design and distribute </li></ul><ul><li>But very low click-through rate – around ½% </li></ul><ul><li>Often only funding source for content sites </li></ul><ul><li>Attempts to do very sophisticated profiling and targetting… </li></ul>
  7. 7. DoubleClick <ul><li>5bn ads served per week (1999) </li></ul><ul><li>Manages database with info on 2bn transactions (1999) </li></ul><ul><li>Attempted to merge databases in 2000, but stopped by consumer pressure </li></ul>
  8. 8. Spam <ul><li>Virtually zero marginal cost </li></ul><ul><li>Lists of tens of millions of addresses for sale </li></ul><ul><li>Currently mass-mails; advanced customisation likely in future </li></ul>
  9. 9. Nightmares for advertisers <ul><li>Personal Video Recorders are easy-to-use VCRs with hard disks </li></ul><ul><li>Viewers can use digital fast forward on content… including adverts </li></ul>
  10. 10. What the studios think <ul><li>“ Any time you skip a commercial or watch the button you're actually stealing the programming… I guess there's a certain amount of tolerance for going to the bathroom.” </li></ul><ul><li>– Jamie Kellner, Chairman and CEO, Turner Broadcasting </li></ul>
  11. 11. More nightmares <ul><li>Automatic, real-time ad blocking </li></ul><ul><li>Cookie management </li></ul>                                                              
  12. 12. Adware <ul><li>Ad-hiding and replacing </li></ul><ul><li>“ [I]t's about whispering in [a customer’s] ear something they ought to know about in context of where they are.” </li></ul><ul><li>In Gator Wallet, KaZaa and AudioGalaxy – 16m users </li></ul>
  13. 13. Canning Spam <ul><li>“ Open Relay” blackholes </li></ul><ul><li>Spam spotters: headers and text styles; centralised and collaborative lists of known spam messages </li></ul>
  14. 14. The marketeers fight back <ul><li>Rights holders suing ReplayTV and Gator </li></ul><ul><li>ReplayTV “ violates the rights of copyright owners in unprecedented ways” (31/10/01) </li></ul><ul><li>“ Gator Corp. is essentially a parasite that free rides on the hard work and investment” of the publishers (25/6/02) </li></ul>
  15. 15. Watching users <ul><li>“ The Court has determined that the need for disclosure outweights the interest in maintaining the alleged confidentiality of the information” (26/4/02) </li></ul><ul><li>“ the Court is persuaded to reverse the Magistrate Judge's Order on the grounds that it impermissibly requires defendants to create new data which does not now exist.” (31/5/02) </li></ul>
  16. 16. Other ways forward <ul><li>Sponsorship </li></ul><ul><li>Product placement </li></ul><ul><li>Tie-ins </li></ul><ul><li>Subscription </li></ul>

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