Promotions 2.0 - The Future of Interactive Marketing

PROMOTIONS 2.0 The future of interactive marketing

The Big Shift Advertising isn’t what it used to be

ew technologies, N d media, and a new fragmente owered consumers generation of emp hanging the world are rapidly c of advertising...

We’re Spending Less Time Here... Radio TV Print -19% -33% -30% Time spent with traditional media is declining Arbitron Research: Internet and Multimedia Study

...And More Time Here. New technologies are captivating consumers

Media fragmentation is increasing. In 1971, the average person encountered approximately 500 ad messages a day David Schenk, Marketing Smog

7 Today, that number is almost 5,000 making it harder to engage consumers. David Schenk, Marketing Smog

ising dvert A nline O flat with ve been Rates ha years.” “CPM he past 2 ults for t ning res now .01% li dec ugh rates o e click thr rag Ave Paid Search “Losing its luster and expe cted to peak this year, followed by a decline.” Borell Associa tes: The Big S hift Research Report (April 2008)

Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 million US consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million 110 million Browse the web from their mobile phone** mobile Participate in customer Social Networks* PASSIVE 95 million 50 million Participate in community producer Have created online content* online Contests & Sweepstakes**** participant *Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano

30.0 2008 2012 22.5 ($ in Billions) 15.0 7.5 0 Display Search Video Promotions Email Online Promotions Spending expected to surpass other online advertising categories over the next 5 years. Source: Borell Associates inc. 2008

Because promotions deliver results... 60% 80% 82% of US consumers of online of consumers have purchased consumers have will provide personal a brand due to a entered a information in exchange promotion.* sweepstakes.** for a chance to win.*** *IMI International **eMarketer ***Jupiter Research: Online Privacy Report

The New Marketing Mix Digital Promotions + Advertising Quadrant 4 = most value Increased Value Increased Value Promotions + Advertising High 4 Increased relevance & entertainment By combining digital promotions & 4 2 advertising both relevance & entertainment value is increased moving closer to Quadrant 4. > > Relevant Brand Advertising 3 Low Relevance - High Creative 3 1 Local or Niche 2 High Relevance - Low Creative Mass Marketing 1 Low Low Relevance - Low Creative > Entertaining > Low High Relevance & Entertainment* 2 axis that create consumer value in marketing: While all marketing is capable of playing in quadrant four, no single medium has broken through. Source: Joseph Jaffe

Old Marketing New Marketing Spray & Pray Attract & Engage Large Audience Smaller Audiences Low Relevance High Relevance Low Return High Return

Promotions 2.0 Marketers are using digital promotions today to create buzz & cut through the clutter

Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand Engagement Brand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement

70% of CPG Super Bowl Advertisers used interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine

User Generated Contests deep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenue winning USA TODAY'S 2009 Super Bowl Ad Meter

Advergames brand messages become viral brand experiences 30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll

Advergames brand messages become viral brand experiences 40 30 20 10 0 Advergames Video Tell-a-Friend Advergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey

Mobile Integration participation anytime or anywhere Largest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit

Inclusive Experiences Everyone wins something. Someone wins everything. One person win a trip to the World Series One college wins a private concert Everyone wins a taco if base with the Dave Matthews Band is stolen during the game Everyone watches online

Social Promotions promotions worth talking about Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers** People Magazine: 3.6 million readers monthly** *Comscore **infoplease.com

Promotion Hell Poor planning can lead to big problems

Warning! Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.

Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of) No Artist Approval + No Rules + Technical Problems = Pending Lawsuit

Rock the Vote Starbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”

Pepsi Stuffed Harrier Jet a steal at 700,000,000 points Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet. Result: Out of court settlement and a whole lot of bad PR.

Promotions 3.0 What’s next for advertising & promotions?

Clutter Continues Brands will look for new ways to engage consumers as media & product proliferation expands M

Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform 65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit

Social Media Expands Social Media is bigger than you think... and it’s just getting started U.S. Social Network Usage 35% All Adults 75% Adults 18-24 * Pew Internet & American Life Project, December 2008

Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers

+ David Griffith is managing director of teamDigital, a brand based digital agency specializing in technology driven promotions that engage consumers, create loyalty, and increase brand value. Blog www.Promotions2.com Website www.teamDigital.com

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Promotions 2.0 - The Future of Interactive Marketing

by David Griffith on Feb 09, 2009

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Promotions 2.0 - The Future of Interactive Marketing — Presentation Transcript