The Digital Marketing Era-Duane Sprague

The Digital Marketing Era Opportunities and Growth

The Digital Marketing Era Opportunities and Growth By Duane “DJ” Sprague

“ Moore’s Law”

Moore’s Law--Every 18 months the power and capacity of a silicon chip doubles.

In 10-15 years we will have maximized the silicon chips capacity for power.

“ Molecular” chips are in early development where a single molecule will be turned or off.

“ Atomic” chips may be possible where a single atom is a switch.

The “Media Generation” is in the drivers seat and they want media delivered when and where they want. Deliver what consumers want, because at the end of the day they are going to do what they want. Give people value and don’t tell them what they should do. Capitalize on what people are actually doing, not on what you think they should do. Recorded album sales are falling apart, but online digital sales of single songs is exploding. People are buying just what songs they want 24/7 online, not what is pre-packaged and sold through retail stores.

WAP Sites will Deliver Instant Gratification for:

“ Snackable media.” Wireless downloads of short videos.

“ In The Moment Video.” Short videos on information they need right then and there:

On the go travel info

On the spot training

One-to-one sales presentations

Room to Grow

The U.S. represents only 7% of the global mobile video usage.

Europe and Asia have a standard format for WAP sites, carriers and handsets. The U.S. does not.

Viral Marketing Business Model

Video content is free to the user. Pre-roll ad revenue is shared 50/50 between the content creator and the web site owner.

Users who pass it along get a 20% revenue share.

Content is Cheap

Webisodes and videos are produced at a fraction of the normal studio production cost. Some for as little as $200.

Users can create and upload their own content at no cost to the web site owner.

This is the “Star Search” “American Idol” concept, where average people want to get discovered as producers, editors, or actors.

Standing in Line

There are more advertisers wanting to pay for a pre-roll ad on a video than there is decent content worthy of advertising on.

NBC Revenue Model

NBC rarely sells a stand alone ad. They sell both a broadcast and an online schedule.

NBC used webisodes of “The Office” to generate additional ad revenue, sell DVDs and add momentum during the off-season.

NBC uses webisodes to test market new programming ideas, like “Heroes.”

Advertising Issues to Face

The online ad footage must be as creative, compelling and engaging as the content.

Cable Goes Variable

Dynamic VOD ad insertion is 24-36 months away:

Insert a spot on the fly based on HH demographics or psychographics

Duane’s Bio A California native, Duane has 18 years of experience in executive level sales, marketing, advertising and PR. Specialist in integrated marketing communications, media strategist and digital/internet marketing. Worked with very large and very small companies throughout the U.S. and Canada, including Kodak, IBM, Lexus, Toyota, Hyundai , Utah Jazz, Southwestern Bell, NASCAR, J.D. Power and Associates, ACME Communications, Citadel Communications, University of Utah, Utah Flash, Idaho Stampede, and dozens of smaller companies and start-ups. Contributing author to 3 university textbooks on integrated marketing and branding, and published over 60 articles on marketing and advertising. National speaker and trainer in advertising, media and media sales. Masters in Internet Marketing, University of San Francisco, and Certified in Integrated Marketing Communication, University of Utah. Certified Focus Group Director, Media Buyer, Negotiator and Inbound Marketing Professional. Award winning speaker, writer, marketer and sales professional.

Duane “DJ” Sprague