Digital Market POV - Dominique-Sebastien Forest


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Personnal Point of View on State of Digital Marketing by Dominique-Sebastien Forest

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  • Bravo M. Forest, votre présentation en anglais est un résumé plus que complet de ce que représente le commerce électronique.
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  • Believe that we become stronger and smarter when we don’t agree
  • French CanadianFather of 2Who loves to push his personal boundariesPassionate
  • … with an addiction to technology
  • Different questions that brought the development of new models I had the chance to be part of thru my career
  • And today, the question that we are facing
  • Book where I expose my marketing vision
  • Took a divorce to finally realize that
  • Digital Market POV - Dominique-Sebastien Forest

    1. 1. Point of View on Digital MarketD o m i n i q u e - S e b a s t i e n F o r e s
    2. 2. Agencyof the DecadeHolmes Report2012 Top UKTech ConsultancyPRWeek UK
    3. 3. Agencyof the DecadeHolmes Report2012 Top UKTech ConsultancyPRWeek UK“Great minds don’t think alike,they think together”
    4. 4. Agencyof the DecadeHolmes Report2012 Top UKTech ConsultancyPRWeek UKBusiness Innovation ModelerCreative Deal Maker
    5. 5. Agencyof the DecadeHolmes Report2012 Top UKTech ConsultancyPRWeek UK1997: How can we reduce the volume of calls associated with check up onorder status and repeat purchase?1998: How can we find an expert on the internet and interact with him?1999: How can we use video games to develop engagement and collect userdata?2001: How can we make money with Porn on mobile devices?2002: How can we monetize the important traffic on Web Portals?2004: How can we make money with music downloads?2006: How can we produce content that is relevant for the web, cheaper andmonetize it differently and efficiently?2009: Create the foundation of what a media business should become.
    6. 6. Agencyof the DecadeHolmes Report2012 Top UKTech ConsultancyPRWeek UKHow can we bring the PR agency atthe center of the marketingactivation and product engagement?
    7. 7. Inside the Minds:Global Marketing Leadership StrategiesPublished by Aspatore Books, a Thomson Reuters businessOne Problem, One Solution, One Application.‘Edison didn’t invent the light bulb by trying to improve thecandle!’“Social Media is like sex. It needs to be done withpassion, commitment, openness to the other person needsand desires, or its not worth doing it as it won’t be a funand pleasurable experience.”
    8. 8. State of the market… a look at the vectors of change
    9. 9. THE END OF THE 1 WAY ADVERTISINGProduct is advertising and marketing is all aboutCONVERSATION & ENGAGEMENT
    10. 10. A MEANINGFUL CONVERSATION HAPPEN WHEN:• Ability to identify the real issues• Being able to create the right environment to address those issues• And have the courage to step out of our safe zone
    11. 11. The END of the ONE WAY ADIntelligent phone, Product Review, Cloud computing and BarCodes have now made itimpossible for marketers to create lies and shoppers have become savvy as theybelieve 50% of what other people tell them but only 10% what advertisers tell them.
    12. 12. The END of the ONE WAY AD• The movie Naked Brand by Jeff Rosenblum illustrates perfectly that one way advertising is Dead, and the Product IS Advertising.• Questus, Jeff Rosenblum agency, recently won best Agency of the Year at the iMedia agency awards and 2 Davey awards, with itsapproach base on an ‘Open Conversation’ with the clients, telling them the good and ‘not good’ stuff, and asking them to help us inbecoming better....• It requires a level of transparency NEVER experienced before, and marketing/advertising become part of everyone’s responsibility; fromcustomer service, to warehouse and even accounting. Striving to create an ‘AWESOME’ client experience on all points.Play MOVIE
    13. 13. OWN, PAID and EARN Media, and NO MEDIA• Advertising and media are experiencing a moment of convergence. The lines are blurring between paid, earned, and owned media. Each is bleedinginto the other, blurring the lines between where advertising, marketing, and user-generated media begin...and end.• Joseph Jaffe with his books ‘Flip the funnel’, ‘Join the conversation’ and Life after the 30 seconds spots taught us a few good lessons:– Move away from telling and selling and start caring and sharing!– Forget Social Media, Let’s put social back into Media– Community is the NEW Demography– How can you expect to effectively talk to a customer if you can’t talk to each other– If someone tells you that you are too expensive, its because you don’t provide enough value
    14. 14. PR Agencies…Based on how the market is changing what is orshould be advertising, our attention moves towardsPR Agencies, who could become the strong force oftomorrow.Edelman expertise goes well beyond traditional PRIt is NOW the largest Social Media Agency in the World and has puttogether the most reputable team of Digital Thinker.Many questions remain:- Impact of the explosions of boutique size firm?- Counter attack of agencies?- Client understanding?- Ability to change and adapt to the structural transformation- Internalisation of PR services and expertise by large clients
    15. 15. Marketing 1:1• Initiated 20 yrs ago with the introduction of ‘direct marketing’• 1 on 1 marketing is now define by the concept of Data Driven marketing, following and interacting with 1customer at a time in multiple environments and thru the entire decision, acquisition and consumptionprocess• Centralisation of user identity, Mobile connectivity, Standardization of data exchange protocol and SocialExposure are the key drivers
    16. 16. Market limitation• With changes comes Adaptation• It is always unclear how fast clients will adapt• The Canadian market is showing a slowdown in speed of growth regarding digitaladvertising and if the existing players forecast growth that exceed the market, theyhave to keep in mind that they will need to steel market share and have the abilityto identify from who…– Some players will be BIG losers• Pressure from US players is driving more Friend-Enemies scenarios
    17. 17. STATE OF THE MARKETReal Time Bidding
    18. 18. Social Media, Time Spent and Available InventoryIn the latest IAB Canada CMOST Research, it was proven that:• Social Media, eCommerce and online TV have been the major factor• In the last 10 years, online time spent has more than doubled• This rapid growth is creating a shift with Available Ad Inventory VS Demand, with about 4 times moreavailable inventory than demand for ad banners
    19. 19. Performance Targeting ToolsAssociation of an Ad with a Publisher BrandTo target a specific buyer, an advertiser would buy ads from a publisher that had an audience corresponding tothe target. This is no longer necessary.Smart cookies, IP mapping and other rich data targeting tools and platforms have emerged and allow advertisersto target users specifically, independently of the website they are on.
    20. 20. The creation of a NEW Eco-System
    21. 21. What is Real Time BiddingRTB, a data-driven programmatic buying model, allows advertisers to bid on qualified display media inreal-time, at the impression level.This happens in an environment where the Supply meets the Demand, like a marketplace, commonly knownas an Ad Exchange.Impact of RTB & Ad Exchange Delivery Model• For each impression, the ad exchange callout up to an unlimited number of bidders and ask them if they are interested in buying an impression.• Reduce buying waste – Buyers buy precisely what they want• The highest bidder wins the auction to maximize revenues.• Minimize the number of client side redirects.• Buys are blind, if we want to. Buys are based on KPI and mask the source.
    22. 22. Ad Exchange – Ad ExtensionAdvertiserssites visitorsTC NetworkSites visitorsNewsletterssubscribers
    23. 23. The ImpactThe impact is hurtful to traditional media company in commoditizing traditional banneradvertising, driving avg CPMs down.The Economist called it: The King of Data vs King of Content.And right now Data is winning over Content is also has an impact on Agencies, who are trying to protect their position as a media buyer in theeco-system by launching Private AdExchanges… but it’s not clear if it will be sustainable!Click for full article
    24. 24. And the impact on Ad Price is now expending to previous winners....
    25. 25. A NEW ECOSYSTEM
    26. 26. Old Advertising Ecosystem
    27. 27. Simplified version of the ecosystem of ‘yesterday’
    28. 28. Edelman at the Center of the Digital Marketing UNIVERSEProductPricePipelineCreative AgenciesAd AgenciesPublishers- Audience- Content Creation- IntegrationBrandDigital MarketingConsumersPaid MediaOwned MediaEarned MediaAd Networks- Audience- Extended Reach- Better value for $$$Paid MediaDirect Marketing- Sampling - Events- Direct Mail/eMail - Loyalty ProgramsPipeline (direct access to client: e-commerce)Ad Exchanges- Real Time Bidding- Audience extension- Inventory ManagementEDELMANMarketing EngagementMarketing ActivationDELIVERY- Strategy- Conversaton- Conductor of the DigitalMarketing OrchestraContent ProvidersMeasurement andData Management PlatformsTechnology Providers Fulfilment Providers External Development DMP, SSP, DSP, ATDPaid MediaContentData- acquisition- management-1on1 marketingMeasurementSocial Media- Community management- Reputation managementPublic RelationsEducationDevelopment- websites- applications…Operating Systems- Native integrationwithin operatingsystems like MAPS
    29. 29. Specialist vs Collaboration• Efficiency take time and experience• Clients biggest challenge is to have deliver what was sold to them• Not a lot of ‘true experienced specialists’• Speed and Time to market (when to get in & at what cost )Rule of Triple Constrain: Something must give up Gartner Hype Cycle
    30. 30. WINNERS THINK DIFFERENTLY• Everybody lie all the time, its human nature and impossible to avoid aspersonal filters, interpretation and frame of reference will always temper withreality.• Pay attention to what they are NOT telling you• And always make sure you understand the Intention
    31. 31. “Edison didnt invent thelight bulb by trying toimprove the candle!”
    32. 32. Business Model Innovation (BMI)BMI refers to the creation, or reinvention, of a business itself. Whereas innovation ismore typically seen in the form of a new product or service offering, a businessmodel innovation results in an entirely different type of company that competes notonly on the value proposition of its offerings, but aligns its profit formula, resourcesand processes to enhance the value proposition, capture new market segments andalienate competitors.
    33. 33. Stop trying to recreate the OLD on NEW platform, it doesn’t workRecreating the OLD onNEW platforms NEVER worked
    34. 34. 1 problem – 1 solution – 1 product• The Unique Selling Proposition needs to address a real issue FOR THE CONSUMER• USP should never be define to address company challenges• Great products don’t require much advertising or promotion– Facebook– Google• Nobody will share the real details on how why or how they became successful– There is to many Gurus and Magic Recipes dont exist– The truth is usually kept secret• 95% of Google 1st billion $ in revenue came from Porn and Online Gambling• 45% of Facebook revenues for the first 3 years was from selling Virtual Goods at user’s birthdayClear USP and Simple problem solving approach
    35. 35. Great IDEASare simple, easy to explain and do NOT requirea Powerpoint presentation to understand!
    36. 36. I want to find a place that always carry the book I’m looking for…... and I want it NOW !
    37. 37. I need a place to find affordable trendy shoes for my kids, without going to theshopping mall...And I need them FAST
    38. 38. A place where ANYONE can sell ANYTHING…at a fair market price
    39. 39. A place to share pictures with friends and classmates !
    40. 40. “What are we eating?”
    41. 41. • Going beyond branded content• Contextual, Dynamic and ContentDriven• Focus on Engagement• Super-cookies and Multiplatform• Becoming part of the content andbringing value to the user experienceThe ad-format revolution
    42. 42. The ad-format revolution
    43. 43. TV is moving online• 30% of TV content is done online, and that is NOT includingconsumption done of tablets and internet connected TV, likeAppleTV or GoogleTV• A fair estimate that over 40% of TV content is consumeonline, seem accurate and the trend is accelerating• This could drive a MAJOR shift in where and how theadvertising $ are spent and changes in Specialised Contentapproach VS Speciality Channels VS General Video Portal
    44. 44. LEGISLATION
    45. 45. Regulations and Legislation could change EVERYTHINGA legislation that would limit the usage of such data could greatly the evolution of the market being basedon data information.Latest spectacular IPOs ( Facebook, LinkedIN ), are putting the value of the data in the center of thosecompany valuation. Legislation could greatly affect their stock value and the overall stock market.4 main legislations – regulations are on the table:•SOPA (USA )•CISPA (USA)•OBA ( Canada – USA )•AntiSpam Law ( Canada )
    46. 46. SOPA ( Stop Online Privacy Act )• The Stop Online Piracy Act (SOPA) is a United States bill introduced by U.S. Representative Lamar S. Smith (R-TX) to expand the ability of U.S. law enforcement to fight online trafficking incopyrighted intellectual property and counterfeit goods. Provisions include the requesting of court orders to bar advertising networks and payment facilities from conducting businesswith infringing websites, and search engines from linking to the sites, and court orders requiring Internet service providers to block access to the sites. The law would expand existingcriminal laws to include unauthorized streaming of copyrighted content, imposing a maximum penalty of five years in prison. A similar bill in the U.S. Senate is titled the PROTECT IPAct (PIPA).• Proponents of the legislation state it will protect the intellectual-property market and corresponding industry, jobs and revenue, and is necessary to bolster enforcement of copyrightlaws, especially against foreign websites. Claiming flaws in present laws that do not cover foreign-owned and operated sites, and citing examples of "active promotion of rogue websites"by U.S. search engines, proponents assert stronger enforcement tools are needed.• Opponents state the proposed legislation threatens free speech and innovation, and enables law enforcement to block access to entire internet domains due to infringing content postedon a single blog or webpage. They have raised concerns that SOPA would bypass the "safe harbor" protections from liability presently afforded to Internet sites by the Digital MillenniumCopyright Act. Library associations have expressed concerns that the legislations emphasis on stronger copyright enforcement would expose libraries to prosecution. Other opponentsstate that requiring search engines to delete a domain name could begin a worldwide arms race of unprecedented censorship of the Web and violates the First Amendment.• On January 18, 2012, the English Wikipedia, Reddit, and an estimated 7,000 other smaller websites coordinated a service blackout, to raise awareness. In excess of 160 million peopleviewed Wikipedias banner. Other protests against SOPA and PIPA included petition drives, with Google stating it collected over 7 million signatures, boycotts of companies that supportthe legislation, and a rally held in New York City.• In response to the protest actions, the Recording Industry Association of America (RIAA) stated, "Its a dangerous and troubling development when the platforms that serve as gateways toinformation intentionally skew the facts to incite their users and arm them with misinformation", and "its very difficult to counter the misinformation when the disseminators also ownthe platform.“• The sites of several pro-SOPA organizations such as RIAA,, and others were slowed or shut down with denial of service attacks started on January 19. Self-proclaimed members ofthe "hacktivist" group Anonymous claimed responsibility and stated the attacks were a protest of both SOPA and the United States Department of Justices shutdown ofMegaupload onthat same day.[2]• Opponents of the bill have proposed the Online Protection and Enforcement of Digital Trade Act (OPEN) as an alternative.[3][4] On January 20, 2012, House Judiciary Committee ChairmanSmith postponed plans to draft the bill: "The committee remains committed to finding a solution to the problem of online piracy that protects American intellectual property andinnovation ... The House Judiciary Committee will postpone consideration of the legislation until there is wider agreement on a solution."
    47. 47. CISPA ( Cyber Intelligence Sharing and Protection Act)• The Cyber Intelligence Sharing and Protection Act (CISPA) is a proposed law in the United States which would allow forthe sharing of internet traffic information between the U.S. government and certain technology and manufacturingcompanies. The stated aim of the bill is to help the U.S Government investigate cyber threats and ensure the security ofnetworks against cyber attack.[1]• CISPA has garnered favor from corporations and lobbying groups such as Microsoft, Facebook and the United StatesChamber of Commerce, which look on it as a simple and effective means of sharing important cyber threat informationwith the government.[2] CISPA has been criticized by advocates of internet privacy and civil liberties, such as theElectronic Frontier Foundation, the American Civil Liberties Union, and, because they argue it contains too fewlimits on how and when the government may monitor private individual’s internet browsing information.Additionally, they fear that such new powers could be used to surveil the general public rather than to pursue malicioushackers.[3][4]• Some critics saw CISPA as a second attempt at strengthing digital piracy laws after the anti-piracy Stop Online Piracy Actbecame deeply unpopular.[5] Intellectual property theft was initially listed in the bill as a possible cause for sharing webtraffic information with the government, though it was removed in subsequent drafts.[6]• The legislation was introduced on November 30, 2011 by U.S. Representative Michael Rogers (R-MI) and 111 co-sponsors.[7][8] It was passed in the House of Representatives on April 26, 2012.[9] President Obama has argued that thebill lacks confidentiality and civil liberties safeguards and has threatened to veto it
    48. 48. OBASelf Regulatory Program forOnline Behavioral Advertising
    49. 49. Anti-Spam Law( by the Privacy Commissioner of Canada )
    51. 51. An under tap market• Cefrio (Netend@ances 2011)– 52% of Canadians made a purchase onlinein the last 12 months– At least 25% in the last month– Confidence is growing toward onlinepurchases– Young adults are leading online purchases– But only 4% of purchases are done online…– All the indicators are telling us it’s a marketthat’s about to BOOM
    52. 52. Is 2012 the year of e-Commerce?Other specialists seems to think so:• Mitch Joel on April 3rd 2012 wrote: ‘ The E-commerce Tipping Point’–– He is predicting that its about to become a whole lot bigger– With a million stores now in the palm of your hand– And the future belongs to selling everywhere at anytime• PwC: Even with social, stores aren’t keeping up– 72% of online shoppers consider themselves ‘very accomplished’– They like online shopping for:• 24/7 convenience• Pricing• Free and fast delivery• Wide range of products• Google is releasing a full suite of e-commerce products– Launching product buy functionalities– Free e-commerce platform for S&M businesses
    53. 53. Manufacturers want to take control back• Control the user experience– As consumer experience is part of the product perception, it becomes vital to ensure that the consumers receive proper support.– Not controlling the full consumer experience is becoming problematic for a lot of manufacturers.• Eliminate co-op marketing $$$– With pressure from retailers to reduce the wholesale price of their products. The 2% to 3% required for coop marketing is bothering more andmore manufacturers.– Poor control over the spent and product placement– Increase in shelving position premium– Premium presentation units at the expense of the manufacturers• Control pricing• Retailers are diversifying with everyday products to reduce the pressure of online purchases with focus on Grocery and Pharmacyproducts– Walmart– Shopper Drug Mart– Canadian Tire
    54. 54. Virtual Retail• Virtual Stores are now rising (– First test launched in Toronto Subway on April 1st 2012– Same day delivery is available– No rent, Free shipping– First time e-commerce is reaching directly where shoppers are… just like classic retail– Some companies like Dominos are forecasting that by 2015, 25% of there sales will be done from mobile phones
    55. 55. Media companies, the retailers of tomorrow?• Why does retail exist?– Help the consumer to make a purchase decision– Provide quality chosen products– Reputation– Footsteps ( volume of shoppers )– Convenience• Media Corporations have– Pre-shopping publications to help consumers making a purchase decision– Propose quality chosen products– Have a reputation– Have an audience (volume of potential shoppers)– Often deliver their products daily to their consumers (Newspapers)
    56. 56. TABLETS
    57. 57. A PortableTV?• The iPad 3– The launch of the iPad 3 was quite telling in what is important for users• Higher resolution screen from 132ppi to 264ppi• Faster graphic card and processing chip for better image processing• And HD 5megapixel 1080p camera• Definitely a popular portable gaming console
    58. 58. A tight Eco-System• Apple is about design and user interface• But it’s now ALL about the operating system• iCloud might be the Tsunami that will givethem world dominance• The eco-system is close, let Apple control thepipeline completely!• It also creates a long term purchase behaviourof all of Apple’s product line
    59. 59. MOBILE
    60. 60. The future of mobile ( Business Insider )• In 2011, the number of smart phones sold exceeded the number of PCs sold• By 2014, the number of mobile smart mobile devices will DWARF the number of PCs• And THAT WILL CHANGE EVERYTHING…How we shop, how we consume content, how we interact, how we LIVE!
    61. 61. The future of mobile ( Business Insider )• The DELTA between mobile ‘time spent’ and ‘ad dollars’ is large and will most likely staylarge, and the monetization model could be very different.• 30% of GILT Black Friday revenues was from mobile• 38% of US Consumers have used smartphones to buy products or services• Apps are now a $10Billion market growing at 100% per year• Most new internet users are MOBILE
    62. 62. Point of View on Digital MarketD o m i n i q u e - S e b a s t i e n F o r e s