The economy of scale of digital, guiding dynamics and how to overcome it
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This document discusses the evolution of digital marketing over three ages from 1995 to the present. Age 1 from 1995-2002 saw the rise of early digital tactics as marginal and exploratory. Age 2 from 2002-2008 saw digital growing in importance and being led top-down from central teams. Age 3 from 2008 onwards saw digital become more people-centric due to the economic crisis and rise of emerging markets, where bottom-up and locally led campaigns could achieve more with less budget through testing, adapting, and rolling out ideas across multiple new markets. The key shift has been from a more technology-centric and centralized approach to one that is more focused on people and localization.
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The economy of scale of digital, guiding dynamics and how to overcome it
- 1. 1 1 The economy of scale of digital and how to overcome it The economy of scale of digital and how to overcome it Dani Komunikacija – Rovinj May 17th 2013
- 3. 3 3 ABOUT ME I work at
- 6. 6
- 7. 7 And we work for some of the most successful brands in the world
- 9. 9 9 What is this session about?
- 10. 10 10
- 11. 11 11 What I know What I heard from you
- 12. 12 12 Digital
- 14. 14 14
- 16. 16 16
- 17. 17 17 The Alchemy of Turning Small into Big
- 18. 18 18 Realistic all the way
- 20. 20 20 Age 1: 1995-2002 Baby digital
- 21. 21 21 We need a website!
- 22. 22 22 “On the Internet, not everyone will win, but those who are not there yet will lose for sure.”
- 23. 23 23
- 24. 24 24 Operational Local Strategic Global Age 1 – 1995/2002
- 25. 25 25 Age 2: 2002-2008 Teenage digital
- 26. 26 26
- 27. 27 27
- 29. 29 29 The reign of the DIGITAL TOOLKIT
- 30. 30 30 And big implementations ! Nivea.com Worlds largest SiteCore implementation (65 markets)
- 31. 31 31 30 campaigns per year Package to market including website, banner, search, email, mobile, social
- 32. 32 32 FIX FLEX
- 33. 33 33 Operational Local Strategic Global Age 2 – 2002/2008
- 34. 34 34 Age 3: 2008-20XX Adult digital
- 35. 35 35 The crisis
- 36. 36 36 GDP growth in Europe
- 37. 37 37 Share of the world GDP growth coming from the BRICS* markets 16% in 2001 61%* in 2015 * BRICS: Brazil, Russia, India, China, South Africa * Source: wikipedia
- 38. 38 38 “I could run that digital thingy in China alone, it would be more profitable!” One of our client, who does not want to be quoted
- 39. 39 39 The crisis
- 40. 40 40 The crisisWas technology dependent only Is now people & technology dependent
- 41. 41 41 Driving force #1 Driving force #2 The crisis in Western/Southern Europe & the new importance of BRICS markets for global brands. Doing digital is not anymore about technology alone. It is also (a lot more) about people!
- 42. 42 42 Driving force #1 Driving force #2 The crisis in Western/Southern Europe & the new importance of BRICS markets for global brands Doing digital is not anymore about technology alone. It is also (a lot) more about people Test + Improve + Rollout + =
- 43. 43 43 Operational Local Strategic Global Age 3 – 2008/20XX
- 44. 44 44
- 45. 45 45 Turn on your smile with just a couple of clicks Install our Facebook app and see how immediate the result is
- 46. 46 46
- 47. 47 47 Campaign production budget in France = X k Euros vs. Campaign overall production budget with 4 additional rollouts = 3X k EurosCost for new markets: X/2 k + some money added to the pot
- 48. 48 48 Original market = better amortization vs. New markets = more with less
- 49. 49 49 Age 1: 1995-2002 Digital is a marginal explorative tactic Age 2: 2002-2008 Digital getting bigger - top down is the norm Age 3: 2008-20XX Bottom up strikes back with emerging markets and a new form of digital led by people
- 50. 50 50
- 51. 51 51 More technology centric, more central More people centric, more local More amortization led, more central More creative led, more local
- 52. 52 52
- 53. 53 53 Creatively: dare Short-sighted: Let’s do that crazy idea that the big markets are too scared to launch. Far-sighted: Can this idea scale? If you had 3, 4 or 5 times more budget, how would it improve the idea?
- 54. 54 54 Source : The CMO’s Imperative – tackling new digital realities – Boston Consulting Group – November 2010
- 55. 55 55 Account Creative Client The ROI of digital is about cost management, and cost management comes from smart mutualization and test/adapt/rollout dynamics How are my ideas scaling up when executed in more markets? Sell consumer insights to the client and upsell the idea of more with less while selling a campaign in digital
- 56. 56 56 ABOUT ME Hvala Thank you @branislavperic
Editor's Notes
- 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