Global Online Branding in Eglish


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Online exposure of US Global brands spread to early adopters in the world and re-exposed to each country. Now's the time for Global Online Branding.

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Global Online Branding in Eglish

  1. 1. Push to Pull Publish C t t P bli h Content Brand Become Media
  2. 2. Media Shift
  3. 3. Both B2C/B2B consumers & users shift to Internet
  4. 4. Internet Users Internet swell to 1.46 billion users 31.35% Up
  5. 5. 22% : Worldwide penetration Internet Penetration
  6. 6. Internet Penetration -2 Average Internet penetration in OECD is more than 60% * Red bar denote more than 70% penetration.
  7. 7. US USA - 1 Newspaper circulation & Network/Local TV viewership down, Cable TV stagnant The State of the News Media 2008
  8. 8. USA - 2 News magazine readers growing older, Radio reach dip, Hispanic Newspaper circulation down, while online users up The State of the News Media 2008
  9. 9. Europe Newspaper circulation in UK/Germany/France down. Magazine Ad revenue down. Increasing Internet users since 2000 gave huge impact on print media. UK Newspaper circulation Germany Newspaper circulation French Newspaper circulation UK Magazine Ad revenue g Germany Magazine Ad revenue y g French Magazine Ad revenue g Source:European Commission Task Force on Co-ordination of Media Affairs 2006-2007
  10. 10. US- US-Internet Reach Internet reach exceed TV in the morning and early evening Source:comScore, Inc.
  11. 11. US- US-Internet Usage O Excluding work usage, Internet hold 17% of media consumption D Source:comScore, Inc.
  12. 12. Europe- Europe-Internet Usage + Influence Media time of Intern in UK/Germany second to TV, in France Top, Influence of Internet come to Top in 3 countries. Source:Harris Interactive / Fleishman-Hilliard Digital Influence Index
  13. 13. Europe – Other media Usage + Influence Time spent in other media and influence lessened. お Source:Harris Interactive / Fleishman-Hillard Digital Influence Index
  14. 14. Internet spread all over, lessen other media consumption and impact on purchase decision, so that
  15. 15. US Online Ad Internet Ad revenue increased more than 20% each year 7.6%* 5.9% 4.7% 3.7% 3 7% Share of Ad 3% +22% +32% +30% +35% +26% % 3 % 30% 35% % Source: * Ad Age 「100 Leading National Advertisers」
  16. 16. US Online Ad O Increase of Online ad exceed other media i Online took only 13 years to reach $20 Billion. Source:comScore, Inc. Source:Marketing & Media Ecosystem 2010 (ANA, IAB, AAAA, Booz | Allen | Hamilton)
  17. 17. Europe Online Ad k Share of Online Ad revenue greater than US P Europe Online Ad market may pass US in 2010 O • €11.2 billion in total • 40% up(US:€14. billion, 26%up) • Ad spend of Europe may pass US in 2010. • UK: £2.8 billion, 38% up 2005:7.8% (share of ad spend) 2006:11.4% (ditt ) 2006 11 4% (ditto) 2007:15.3% (ditto) Source : IABEuropeOnline
  18. 18. Even conservative Big Brands like
  19. 19. MS and GM: GM: Shift budget to Online MS shift budget to Online (Ad budget was $912 million in 2006 and online was $82 million, 8.9%) Budget of B2B campaign for “Heroes Happen Here/The Heroes Server Unleashed” is $150 million Significant portion is Online + IT magazine No TV ad MS intends to shift at least half its marketing budget to online in the next two years GM will shift half of $300 million ad budget from TV and print to digital and direct consumer channel in 3 years. y * Korean Hyundai will double online ad budget b dget as well. ell Source:Adage 2008/3/18 Source : BtoB Online 2008/3/10
  20. 20. US Online Ad forecast:eMarketer forecast: Even though slightly lowered, eMarketer estimate 10% - 20% > increase each year. In 2013 Online ad spending will be doubled from 2008. Source:eMarketer 2008/8/13
  21. 21. OECD Internet users 700 million (48%) explode to Power of TV, Penetration 60% 1.46 billion Newspaper, Penetration 22% Magazine, Radio lessened Big impact on Both MS and GM purchase decision will shift to online (UK, Germany, France) F ) Internet usage Online Ad revenue increase: increase while USA ($20 billion in 13 years) other media Europe (10%+ share in 7 countries), decrease d UK (15.3%) Media Shift Internet have greatest power Internet is where Consumers and users gather now. Media shift is very clear and online ad revenue continue to increase. Now, Internet shift from Web 1.0 to Web 2.0
  22. 22. Web 2.0
  23. 23. Stormy R St Revolution l ti Creative Commons – Attribution Share Alike License David Shapinsky
  24. 24. Most marketers use legacy mass media and/or Web 1.0 as a broadcast platform. 10 platform They use it to push and shout shout. Sometimes that works.
  25. 25. But, a day when marketers use Internet as a platform pushing message and information as legacy mass media g y is over.
  26. 26. Web 1.0 → Web 2.0 Since middle of 2005 Web 2.0 sites pass reach of mass media web site, and gap have been getting wider. Note : have ceased to exist.
  27. 27. 475 million (active users, 16-54 years) Web 2.0 Space Size 248 346 million million uploaded view Blog photo h 184 million illi 394 million started own viewed Blog video 303 million share video 183 million uploaded video 215 million downloaded 160 Podcast million receive 216 million RSS feed downloaded video Podcast Social Bookmarking 272 million have SNS profile Source: Universal McCann Comparative Study on Social Media Trends April 2008
  28. 28. Many applications, service, tools Content sharing, collaboration, tagging, recommendation, rating and etc.
  29. 29. Social Media put Consumers in control of the conversation. conversation Power shift in addition to Media shift. Every consumer is … E i … a publisher …a DJ …an expert …a broadcaster …a critic …an editor …a network …syndicated
  30. 30. Web 2.0 = Social Media Media structure changed from mass media One O way of pushing message to participating, f hi t ti i ti to social media sharing, conversational and interactive media. Consumer & Users make Media. Legacy mass media Social media Space defined by Media Owner Space defined by Consumer Brand in control Consumer in control One way / Delivering a message Two way / Being a part of a conversation Repeating the message Adopting the message / beta Focused on the brand Focused on the consumer / Adding value Entertaining Influencing, involving Company created content User created content / Co-creation Creative Commons – Attribution Share Alike License David Shapinsky
  31. 31. Web 2.0 spread Not only B2C, but also B2B IT decision makers consume social media for 4 hours IT decision makers trust UGC more than mass media and corp. web 90% of B2B buyers view online video 63% of B2B buyers view online video for business and technology information 80% of B2B buyers read Blog 70% of B2B buyers recommend Blog to co-workers and colleagues Blog influenced IT purchase decision of 53% of B2B buyers 69% of B2B buyers have visited SNS Source: ITtoolbox/PJA IT Social Media Index Wave I & II, Knowledgestorm / Universal McCann Emerging Media Series
  32. 32. Web 2.0 tools companies count A Companies are adopting Web 2.0 tools for broader business practice P Source:McKinsey Building the Web 2.0 Enterprise
  33. 33. Global companies adopting 世界的なグ 世界的なグローバル企業の51%が導入 バル企業の51%が導入 Web 2.0 tools most Source:Forrester Research “Groundswell Web 2.0”
  34. 34. Mass Media adopting Web 2.0 p g Blog, YouTube, Facebook, mobile, LinkedIn, embedding video, user comment, etc.
  35. 35. 2006 Current Web 2.0 eb 0 Yes, Web 2.0. Web 2.0 control engagement. Welcome to Web 2 0 world 2.0 world.
  36. 36. Web 2.0 Big impact on media scene and marketing Big change in Media structure From brands & mass media To consumers & users publishing content Consumer & users become media Open information sharing conversation and engagement sharing, Consumers in control Mass media adopting Web 2.0 Big impact on companies Web 2.0 spreading to B2C and B2B Web 2 0 spreading to global companies 2.0 Web 2.0 leading to Marketing 2.0 20 20 CC Attribution License Kieran Lynam
  37. 37. Kodak, Dell, Sun : Blog Marketing Appoint Chief blogger, Open conversation with users & investors blogger investors, CEO + 4,300 > bloggers
  38. 38. HP, IBM : YouTube Marketing On demand video Utilizing content sharing tool of YouTube video, Spreading exposure to the world HP running YouTube channel of “What do What IBM WebSphere educate / train companies for p p you have to say?” SOA.
  39. 39. Amex, Visa : Forum & SNS Amex : Visa : Open Forum sharing ideas and advice from Providing application of exchanging experts, providing various resources and ideas, contacting suppliers for SMB at services such as financial monitoring, Facebook, enabling to access articles of improving cash fl i i h flow and cost cutting for d t tti f WSJ and video by Entrepreneur com More members. than 100,000 companies participate in US. (Planning for UK)
  40. 40. Cisco, Motorola, Xerox : IT Briefing Center Analyst briefing and Brands expand content Custom Webcast channel and touch point with lead generation for qualified users via B2B specific i ifi channel
  41. 41. Marketing 2.0 Big Change 1 Push to Pull Product Centric to Consumer Centric Direct conversation with consumers via Web 2.0 Increase online touch points p Promoting engagement, user feed back, user insights and collaboration
  42. 42. Marketing 2.0 Big Change 2 Brands Publishing Content Brands create and publish content Expose content via Web 2.0, promote sharing and re-exposing content Brand s Brand’s becoming Media Mass media position as message channel fall
  43. 43. This leads to….. to
  44. 44. The end of Advertising g as we know it The next 5 years will hold more change for the advertising industry than the previous 50 did. Empowered consumers, more self-reliant E d lf li t advertisers and ever-evolving technologies are redefining how advertising is sold, created, consumed and tracked. Traditional advertising players – b d d ti i l broadcasters, t distributors and advertising agencies – may get squeezed unless they can successfully implement consumer, business mode and business d i i b i design innovation. ti Source:IBM Global Business Service “The end of advertising as we know it.”
  45. 45. The Future of Advertising Talking to ad executives one gets the sense that few know how to executives, cope even with the changes to the media landscape that have already happened, let alone the ones that are still to come. Simply put, the concept of mass media has ended. It is less clear what will replace it and how advertising will play a role role. By Media shift + Web 2.0 + Marketing 2.0 Advertising is in the stage of greatest change Source:The State of News Media 2008
  46. 46. By the B th way, Do you know?
  47. 47. Online ad on ArsTechnica or NYTimes can be viewed f i d from Japan J
  48. 48. Online ad on Businessweek or TechCrunch can b seen f be from Japan J It’s because beca se
  49. 49. without geo-Targeting g g g any ad can be seen from anywhere. ( (Geo-Targeting require p g g q premium charge of 15 to 30%) g ) This means… means Courtesy: NASA / Goddard Space Flight Center
  50. 50. More than half of audience of US Web sites is from abroad not only top Web sites, but also business, IT and SNS sites as well
  51. 51. IT Blog, business SNS as well 30% - 80% of UV is non-US Online ad spread overseas together with content UV = Unique Visitor
  52. 52. General, business, Finance, PC site as well 20% - 70% of UV is non-US, Online ad spread overseas together with content UV = Unique Visitor
  53. 53. Reason i R is simple p
  54. 54. Lingua Franca power of English g p g It’s quite natural as people in many countries speak English. China : According to People’s Daily Online March 31, 2006, there are about 300 million people th b t illi l learning English language in China, accounting for one-fourth of the country's total population. Among t ' t t l l ti A them more than 100 million are students, from primary school to university. The English-learning population i th country will l ti in the t ill surpass the total population whose mother language is English June 17, 2008 J 17 More than 1 million people took the IELTS last year, making it the world's most popular English language t t l test. Source : English Next、 British Council 2006 Source : People’s Daily Online
  55. 55. US companies intend to advertise domestically, domestically, but spread exposure globally. 1) Who access US Web/Blog/SNS site? 2) Effect of spreading online ad globally? Eff t f di li d l b ll ?
  56. 56. 1) Who access from abroad? They are Early Adopters and Influencers They access US Web/Blog/SNS sites for latest news and information even though they are not who need latest news and information of US English, politics, economy, finance, politics economy finance about internet internet, software, white paper, case study, music, so that … video, PC for own business and personal interest.
  57. 57. Traffic of niche Blog site like BrandingStrategyInsider come from all over the world as it’s in Ad Age’s Power 150 blog and provide insights news and insights, information Early adopters need. Traffic to :Largest red dot indicate more than 1,000 visits.
  58. 58. Among early adopters and influencers accessing US Web/Blog/SNS sites sites, what are top bloggers in non English country doing?
  59. 59. Top German Blog h // d h bl h d /i d h l Posts of BasicThinkingBlog cover, refer & translate TechCrunch, ArsTechnica, ReadWriteWeb, TechMeme, GigaOM, NYT, BusinessWeek, Guardian, FT, TimesOnline, Reuters and so on., and publish content to domestic users. , , p Also SaaS, SalesForce, SAP, WSJ, Ad Age, LinkedIn are covered.
  60. 60. Top p French Blog Bl 57be 11db be9f 57be-11db-be9f- 0000779e2340.html?nclick_check=1 Posts of Loic Le Meur Blog cover, refer & translate cover TechCrunch, ArsTechnica, ReadWriteWeb, TechMeme, GigaOM, NYT, BusinessWeek, Guardian, FT, Reuters and so on as BasicThinkingBlog, and publish content to domestic users.
  61. 61. Not only BasicThinking and Loic Le Meur but also Meur, every early adopters and influencers bring back content from US/English sites and publish/translate them in their own countries. IT, Internet, Online Ad, Game, Software, PC and many other blog sites in Japan are full of US content.
  62. 62. And, users who read content of early adopters write , y p Web/Blog/SNS content, link to them, share content with friends and colleagues. , g As a result, content spread all over, Online ad exposure spread all over as well. p p
  63. 63. 2-1) Impact of online ad exposure spilling over US domestic brands + Foreign sales subsidiaries VS. US Global brands US Domestic brands Big waste of Online ad g Foreign sales subsidiaries impressions in USA TV, Print, Online Ad, OOH, Etc. OOH Etc Content Brand exposure outside of p USA is nothing but waste of ad budget US Internet users Early adopters y p 215 million 13.5 % (197 million) No responsibility and No budget for Brand Internet users awareness and Brand 1,460 million building in countries other than USA
  64. 64. 2-2) Impact of online ad exposure ) p p spilling over US domestic brands + Foreign sales subsidiaries VS. US Global brands g US global brands g WOM, TEL, Email, Brand Awareness & B dA Face to Face Brand Building Worldwide TV, Print, Online Ad, sales OOH, Etc. OOH Etc Content opportunity available US Internet users Early adopters y p 215 million 13.5 % (197 million) Increase Internet users Worldwide 1,460 million Brand Awareness
  65. 65. Early adopters and influencers in the world access US or E li h W b/Bl /SNS/ id sites English Web/Blog/SNS/video it as well as company web site for their business and personal interest as they understand English. y g They are exposed to overwhelming online ad as well as content company created
  66. 66. US global brands are un-intentionally achieving brand awareness to the early adopters and influencers y p in the world. And the effect of brand awareness spread to domestic users of each country country, and brand awareness is building up.
  67. 67. Exposure on US sites p spill over to the world But Japanese and non-US global companies lack brand exposure in US sites, online exposure gap with US counterpart will widen.
  68. 68. 1st Question
  69. 69. Who s Who’s in charge of this spillover p and Global Online Branding? Gl b l O li B di ?
  70. 70. Branch office? Affiliate? Subsidiary? S b idi ? or HQ?
  71. 71. Only if HQ Q took initiative of
  72. 72. Global Branding Media Shift Web 2 0 W b 2.0 Marketing 2.0 Spillover
  73. 73. However, However Japanese and non-US companies / Brands are not Social, Innovative, nor Interactive. Both B2C and B2B brands lose opportunity to reach worldwide users who are migrating to Web 2.0 and further to 3.0. With current situation that US brand exposure keep spilling over to the world, value of Japanese and non-US CC Attribution-NoDerivs License Brands will fall off. Felix
  74. 74. 2nd 2 d Question
  75. 75. While US content and online ad exposure spill over t the world, to th ld
  76. 76. and while early adopters and y p influencers are spreading content and Brands worldwide, t t dB d ld id
  77. 77. with out-dated strategy gy and means CC Attribution-NoDerivs License William Gantz
  78. 78. how can you reach and engage with y g g consumers and users of B2C/B2B at Web 2.0 W b 2 0 space or b beyond where d h they are? CC Attribution License Dan Kamminga
  79. 79. Best is to learn From Forerunners
  80. 80. Cisco:Human Network 5 million visitors annually (80% new visitor) Target audience awareness up 80%
  81. 81. Oracle Marketing budget was 5% 10 y g g years ago, now 1.7% of g revenue. Online ad budget is 36%, OOH 29%, print 9%. Attendees of events increased by 10% in 2008, won deal linked to event was 56% average deal size was up 149% 56%, 149%. Number of forum increased 22%, with 94% more posting. Webcast Oracle consolidated all its marketing Judith Sim senior VP-CMO Sim, VP CMO operations, will run 26 global campaigns “More and more people are staying for a longer period and conduct more than 7,000 events. of time because of Web 2.0 technology. It's working, but y have to track it in a different way.” g you y Social news release cut PR budget in half half, realizing cost saving of $4.6 million.
  82. 82. GM:FastLane Blog Estimated i k dj t d E ti t d risk adjusted ROI i 2007 was 39% in Forrester Research estimate running cost of FastLane Blog and benefits of customer insights, blog visibility, press coverage, WOM. ROI was 99% in 2005. Source:BtoB Online 「Social Media How Online Buzz Drives Buyers to Your Doorstep」
  83. 83. INC.500 49% of companies within the Inc. 500 use SNS, 45% use online video, and 39% use Blog. Fortune 500 Business Blog 62 (12.4%) of the Fortune 500 are blogging as of Sep 9, 2008. Source:UMass / Social Media in the Inc. 500: The First Longitudinal Study (pdf)
  84. 84. Too far away? Why not try this first?
  85. 85. Web visitor Survey IBM, Siemens, Phili IBM Si Philips, Samsung S
  86. 86. Ideas, feedback and be sociable Dell, HP IBM Philips, Oracle & others D ll HP, IBM, Phili O l th
  87. 87. Share Information Walmart, Nokia, Dell, IBM & others W l t N ki D ll th
  88. 88. Or, Simply drive traffic from Web 2.0 sites
  89. 89. Korea : Seoul city Use niche Blog such as Cyberjournalist and gaijinsmash to spread exposure to Web 2.0 space, generating links, referrals, buzz to increase traffic
  90. 90. Otherwise, Otherwise
  91. 91. Web Blog RSS E-PR Podcast Mash- Mash-up Your brand will be swept away Mobile with Webcast Media Shift YouTube Web 2.0 20 Marketing 2.0 g SNS Spillover Forum
  92. 92. Best Strategy gy is
  93. 93. Push to Pull Publish Content Become M di B Media Toward Global Online Branding g
  94. 94. Thank You Takashi Kasai CC attribution license oscar federico bodini