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