Digital Advertising Trends - Asian Publishing Convention

Digital Advertising - Trends -
Chris Schaumann
Global Advertising & Digital Lead
Asia Pacific & Greater China Region
CMG | Global Marketing Group

1. Changing Landscape
Did you know?
Bring the Love back
Digital Divide
Future Shape of Advertising
Agenda
2. Advertising v3.0
Trade Maps
New Marketing Model
Experiential Marketing
Measuring Engagement
3. Media & Management
Altered Media Universe
Role of Media & Agencies
Case Study from the Future
17 July 2009
© Microsoft Corporation 2009 | CMG | Global Marketing Group
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Did you know?
17 July 2009
Slide 3

So what does it all mean?
Change!
“In 10 years, allmedia will be digital!”- Steve Ballmer, CEO Microsoft
We’ll need to rethink
17 July 2009
Slide 4
a few things
media
advertising
marketing
agencies
ourselves

Bring the Love back!
Join the conversation at
www.bringtheloveback.com
17 July 2009
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Exploding Online Users in APAC
Source: www.internetworldstats.com , July 2009
17 July 2009
© Microsoft Corporation 2009 | WW CMG
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Almost 1.6 Billion Users Worldwide

Still huge Potential in APAC
Source: www.internetworldstats.com , July 2009
17 July 2009
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Internet Penetration
World Average: 24%

Average Time of Media Exposure per Day - Asia
Source: Synovate PAX Digital Life, Nov 2008
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2009 Internet Ad Share
Source: Zenith Media Pyramid Estimates, Dec 2008
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13% APAC average

Global Ad Spend Share by Media
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Source: Zenith Optimedia

Asia Pacific Net Advertising Growth
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Source: MPA Research Estimates

The Digital Divide
The Marketing Confidence Gap
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Slide 12
Source: Neo@Ogilvy

2007 Online Ad Market = $34B
6% of total Ad Market
2009 Online Ad Market = $52B
8% of total Ad Market
Total Advertising Industry = $570B
Total Software Industry = $135B
Software & Ad Market
Online Ads
2009: $52B
Online Ads
$34B
Sources:

Market Sizes: Microsoft & Universal McCann
Online Market Sizes: Oppenheimer & Co. Inc., June 2007 (sources include Universal McCann, Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers )

17 July 2009
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Global Media Consumption
17 July 2009
Slide 14

…what about Microsoft?
Of the $500 million Microsoft allocated to the introduction of its Vista operating system, 30% went online.
Source: Times UK Online, October 21, 2005
17 July 2009
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17 July 2009
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Did you know?
Bring the Love back
Digital Divide
Agenda
2. Advertising v3.0
Trade Maps
New Marketing Model
17 July 2009
17

17 July 2009
Slide 18

The New Marketing Funnel
“The traditional AIDA funnel has become a sea of complexity”
Source: Forrester Research
17 July 2009
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Trade Maps: Then and Now
18th Century: Map of the Northwest Passage
17 July 2009
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Trade Maps: Then and Now
21st Century: Social Trade Map
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17 July 2009
Slide 22
Source: http://www.caida.org/tools/visualization/walrus/gallery1/

Customer-2-CustomerGeneration ‘C’ (for Content)
Research shows that 65%of all marketing spend in 2007 had no effect on consumers

70% of all Asian marketers are not tracking the effectiveness of their spending

Source: The Fournaise Marketing Group’s 2007 Global Marketing Effectiveness Report
17 July 2009
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Case Study: Unilever
http://www.campaignforrealbeauty.com
http://www.youtube.com/results?search_query=dove
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Source: Youtube.com – 19,036,415 Views, October 2008

Campaign for real Beauty
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Slide 25

Campaign against real Life
17 July 2009
Slide 26

Talk to your Daughter before they do!
17 July 2009
Slide 27

Talk to your Daughter before Unilever does!
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Slide 28
Source: Youtube.com – 164,946 Views, October 2008

Talk to Dove before it’s too late!
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Slide 29
Source: Youtube.com – 557,368 Views, October 2008

Customer-2-Customer
Research shows that 86%of consumers no longer believe what brands say about themselves

Whereas 78% of consumers believe what other consumers say about brands

Source: http://bbdolab.typepad.com/the_lab/2006/10/generation_c.html
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The top Brands that will be those whose Consumers...
...tell the best Stories

Brands with themost Recommendation in theirCategory grow 4x faster than theCategory Average.Increasing recommendation by12% doubles sales growth.
Source: London School of Economics
Source: Bain Consulting

Exploding Referral Spectrum
17 July 2009
Slide 33
Source: The Value Profit Chain, Heskett/Sasser, Jan 2003

Engaging Customers
“The essential difference between reason (logic) and emotion is that reason leads to conclusions while emotion leads to actions.”
- Neurologist Donald Calne
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Engaging Customers
“95 percent of our purchase decision making takes place in the subconscious mind...”
- Gerald Zaltman, Professor, Harvard Business School
17 July 2009
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New Marketing Model
Source: Mohan Sawhney, Kellogg School of Management
17 July 2009
Slide 36

Attract
Engage
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Excite

Engaging Consumers
Immersive
Interactive
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Participatory

Perception
80% of CEO’s believe their brands provide a superior customer experience

8% of their customer agree

Source: Bain & Company
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Rich Digital Experiences
17 July 2009
Slide 40
Source: AvenueARazorfish :: Showreel
e.g. http://www.audi.com/a4globaldrives

PUBLISHER
TOOLS PROVIDER
Microsoft Media Network
17 July 2009
Slide 41

Engagement Duration
Challenge
The new Marketing needs to not only to attract, but also engage & excite
Reach & Frequency are not catering to measure the quality of Engagement & Excitement
Solution
This new metric is coined: Brand Exposure Duration - BXD
BXD is the length of time an individual is exposed to a given advertisement
BXD = Views × Percent of Segment Viewed × Segment Length
BXD = Video Ad Views x %65 x 30 sec.
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Engagement Mapping
17 July 2009
Slide 43
Engagement Mapping is a flexible attribution model
that enable advertisers to include many factors
In their Engagement ROI calculations
Source: Atlas Engagement Mapping Paper, 2008

Did you know?
Bring the Love back
Digital Divide
Agenda
2. Advertising v3.0
Trade Maps
New Marketing Model
17 July 2009
44

17 July 2009
Slide 45

The End of Mass Media
7,109
Number of TV Channels
~3,000
1,686
416
246
93
UK
Japan
US
France
Germany
Source: Europe: Screen Digest 2005, Japan: Wikipedia May 2006, US: US Federal Comms Commission, 2004
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China

The KING still reins
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Breadth & Depth across APAC
17 July 2009
Slide 48
Total APAC reach : 288 million | 34.1% coverage of all APAC online
20.8musers in Japan
145m users in China
7.1m users in S Korea
5.7musers in Taiwan
2.4musers in Hong Kong
8.5m users in India
0.7musers in Philippines
4.2musers in Thailand
4.3m users in Malaysia
8.7musers in Australia
1.9musers in Singapore
1.5musers in New Zealand
Source: ComScore & iResearch : Dec 08

YOU as the editor
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Planning & Creativity
17 July 2009
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The Future of Marketing - From Monologue to Dialogue
“Media execution &media buying is becoming the new creative in advertising”
Source: The Economist Intelligence Unit, September 2006
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Placement vs. Audience
Digital Lifestyle
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Future Advertising Scenario
Integrated Advertising Campaign with
Real-time automated Optimization
Based on End Actions/Conversions
Based on Brand Metrics
Utilizing 100-1,000s of Creative Versions
In 100s of Sizes and Formats
Personalized and hyper-targeted
In multiple Advertising Exchanges and Platforms
Online, IPTV, Mobile, Music Players, In-Game, Digital POS, Digital Outdoor
With bidded CPA (Cost per Acquisition)