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The economy of scale of digital, guiding dynamics and how to overcome it
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The economy of scale of digital, guiding dynamics and how to overcome it

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Slides from a presentation during the Effie Awards / Dani Komunikacija hosted in Rovinj, Croatia. May 2013. ...

Slides from a presentation during the Effie Awards / Dani Komunikacija hosted in Rovinj, Croatia. May 2013.
Speech was about the guiding dynamics of digital for brands across the globe, top down & bottom up dynamics when it comes to creativity, production and smart mutualization fo effort.

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  • My topic is… I chose my topic because I heard there was an issue for you…
  • 12 locations across the globe
  • Beliefs, principles, morality Goes somewhere, has a purpose broader than selling Can execute upon those at biggest and smallest levels Can leverage opportunities Pionneering new products, leveraging data, etc…
  • A good example is SBX NBI
  • What is this session about?
  • Real economy!
  • I ’ m with you!
  • What is this session about? Digital for BRANDS! I worked for Nike, PlayStation … Not the new economy, startups… I am talking about the digital effort that brands are setting up from the inside, and the one that agencies are offering on the outside.
  • Short term, burst campaign digital Montrer un exemple ?
  • Short term, burst campaign digital Montrer un exemple ?
  • Short term, burst campaign digital Montrer un exemple ?
  • Short term, burst campaign digital Montrer un exemple ?
  • Magic! Alchemy! Turning small into big!
  • No pessimism No fake optimism
  • No pessimism No fake optimism
  • A lot of budget +++ Less organized --- A mess
  • What is this session about?
  • Automotive, Travel industry, Media
  • Automotive, Travel industry, Media
  • End of the previous cycle came with the Internet bubble of 2001/02, right after 9/11 in New-York Not more money (except maybe in 2006/07) --- More structure +++
  • No country can afford those alone, you have to mutualize the effort
  • Let me tell you how things work on Nike, Mini and a couple of others big global brands
  • Central/Global management became the norm
  • Two things happened in 2008 and moved digital into a new era
  • The crisis. Why does it matter?
  • Because the digital money goes to the market where growth is strong and market is big.
  • Because the digital money goes to the market where growth is strong and market is big.
  • Doing a favor!
  • And the ways and means of digital switched from a technology led built to a people+technology led built.
  • And the ways and means of digital switched from a technology led built to a people+technology led built.
  • What does that mean? Well, the new driving force of digital money is people and growth markets. You have to get back to local for cultural relevancy with people. More often. Because of social… You have to get back to local in the BRIC markets, where growth is, but also….
  • What does that mean? Well, the new driving force of digital money is people and growth markets. You have to get back to local for cultural relevancy with people. More often. Because of social… You have to get back to local in the BRIC markets, where growth is, but also you have to test things, validate the investment
  • Automotive, Travel industry, Media
  • Let ’ s get into examples
  • The concept
  • The execution, simple insight, started locally and …
  • Became a successful campaign in several markets.
  • Became a successful campaign in several markets.
  • Two things happened in 2008 and moved digital into a new era
  • Pick the battles with bottom up potential and be wise…
  • Blue is platform, red is campaign
  • Became a successful campaign in several markets
  • Became a successful campaign in several markets
  • Take a picture 
  • Raconter – en jeu de role, en mode vs. Avec ou sans…
  • First a small intro

The economy of scale of digital, guiding dynamics and how to overcome it The economy of scale of digital, guiding dynamics and how to overcome it Presentation Transcript

  • 1 1The economy of scale of digitaland how to overcome itThe economy of scale of digitaland how to overcome itDani Komunikacija – Rovinj May 17th 2013
  • 2 2ABOUT MEI’mBranislavPerić
  • 3 3ABOUT MEI work at
  • 4We buildnetworked brands
  • 5We buildnetworked brands
  • 6
  • 7And we work for some of the mostsuccessful brands in the world
  • 8 8CentralLocal
  • 9 9What is thissessionabout?
  • 10 10
  • 11 11What I knowWhat I heard fromyou
  • 12 12Digital
  • 13 13Digitalcampaigns
  • 14 14
  • 15 15Digitalplatforms
  • 16 16
  • 17 17The Alchemy ofTurningSmall into Big
  • 18 18Realisticall the way
  • 19 19SparkNew ideas
  • 20 20Age 1:1995-2002Baby digital
  • 21 21We need awebsite!
  • 22 22“On the Internet,not everyone willwin, but thosewho are not thereyet will lose forsure.”
  • 23 23
  • 24 24OperationalLocalStrategicGlobalAge 1 – 1995/2002
  • 25 25Age 2:2002-2008Teenage digital
  • 26 26
  • 27 27
  • 28 28500kEuros+
  • 29 29The reign of theDIGITALTOOLKIT
  • 30 30And bigimplementations!Nivea.comWorlds largest SiteCoreimplementation(65 markets)
  • 31 3130 campaignsper yearPackage to marketincluding website,banner, search, email,mobile, social
  • 32 32FIX FLEX
  • 33 33OperationalLocalStrategicGlobalAge 2 – 2002/2008
  • 34 34Age 3:2008-20XXAdult digital
  • 35 35The crisis
  • 36 36GDP growth in Europe
  • 37 37Share of the world GDP growthcoming from the BRICS* markets16%in 200161%*in 2015* BRICS: Brazil, Russia, India, China, South Africa* Source: wikipedia
  • 38 38“I could run that digital thingyin China alone,it would be more profitable!”One of our client, who does not want to be quoted
  • 39 39The crisis
  • 40 40The crisisWas technology dependent onlyIs now people & technologydependent
  • 41 41Driving force #1 Driving force #2The crisis inWestern/Southern Europe& the new importance of BRICSmarkets for global brands.Doing digital is not anymoreabout technology alone.It is also (a lot more) aboutpeople!
  • 42 42Driving force #1 Driving force #2The crisis inWestern/Southern Europe& the new importance of BRICSmarkets for global brandsDoing digital is not anymoreabout technology alone.It is also (a lot) more aboutpeopleTest + Improve + Rollout+=
  • 43 43OperationalLocalStrategicGlobalAge 3 – 2008/20XX
  • 44 44
  • 45 45Turn on your smile withjust a couple of clicksInstallour Facebook appand seehow immediatethe result is
  • 46 46
  • 47 47Campaign production budget in France= X k Eurosvs.Campaign overall production budget with 4 additional rollouts= 3X k EurosCost for new markets: X/2 k + some money added to the pot
  • 48 48Original market= better amortizationvs.New markets= more with less
  • 49 49Age 1: 1995-2002Digital is a marginal explorative tacticAge 2: 2002-2008Digital getting bigger - top down is thenormAge 3: 2008-20XXBottom up strikes back withemerging markets and anew form of digital led bypeople
  • 50 50
  • 51 51More technology centric, more centralMore people centric, more localMore amortization led, more centralMore creative led, more local
  • 52 52
  • 53 53Creatively: dareShort-sighted: Let’s do that crazyidea that the big markets are tooscared to launch.Far-sighted: Can this idea scale? Ifyou had 3, 4 or 5 times morebudget, how would it improve theidea?
  • 54 54Source : The CMO’s Imperative – tackling new digital realities – Boston Consulting Group – November 2010
  • 55 55Account Creative ClientThe ROI of digital is aboutcost management, and costmanagement comes fromsmart mutualization andtest/adapt/rollout dynamicsHow are my ideas scalingup when executed in moremarkets?Sell consumer insights tothe client and upsell theidea of more with less whileselling a campaign in digital
  • 56 56ABOUT MEHvalaThank you@branislavperic