Dutch Customer Futures Digital 19 6 8

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Dutch Customer Futures Digital 19 6 8

  1. 1. Customer Futures How Digital Is Changing The Marketing Landscape 19/6/08
  2. 2. How Digital Affects All Business Analysis 1. Evolving market place 2. Audiences online Complication 3. Changing customer 4. Marketing response Solutions 5. Rules & Tools 2
  3. 3. Interactive @ Ogilvy The largest digital network in the world 3
  4. 4. Digital Is Not A Discipline… It is A Specialism Within A Discipline PR ADVERTISING DIRECT RETAIL ACTIVATION DIGITAL 4
  5. 5. 1. Evolving Marketing Place a) Marketing under pressure, b) What marketers are saying, c) What marketers are doing, d) Key reasons why,
  6. 6. 1a Traditional Marketing Methods Will No Longer Work McKinsey “The ad industry is passing through one of the most disorienting periods in its history. This is due to a combination of long-term changes, such as the growing diversity of media, and new technologies, most notably the internet. Consumers have become better informed than ever before, with the result that some of the traditional methods of advertising and marketing simply no longer work.” 6
  7. 7. 1a New Marketing Channels Explosion 7
  8. 8. 1a New Marketing Channels Explosion McKinsey, Investment Marketing 8
  9. 9. 1c. Real Indicators: What are Advertisers Doing? Google’s Ad & Search revenue in the UK ($803 UK Digital Ad Revenue will exceed print in million Q1) will exceed ITV in 2008! 2008 The value of European online marketing will more than double from €7.5 billion in 2006 to more than €16 billion in 2012, 18% of total media budgets. Forrester July 12, 2007 9
  10. 10. 1d. Why: Online Advertising Drives Measurable Action Cancer Research UK Banner Campaign Viewed Impressions Ad £1.8 37 million CPM – 0.08% CTR - Arrived £2.26 29,949 CPC – 3. 51% CTC - Action £74.20 (vs. £90 Target) 914 CPA – £60.32 Cash/£58.3DD ARPU - £ Year 1 £17,953 Cash 0.71 – Year 1 ROI – £42’630 DD £ Over 5 Years 2.90 – Year 5 Donated £231, 103 ROI – 10
  11. 11. 1d. Why: Online Advertising Builds FMCG Brands 100 Control 5.9% Exposed 80.3 75.8 80 9.0% 5.9% 58.1 Percent 60 33.7% 53.3 47.5 50.3 44.4 107% 40 33.2 33.2 16 20 0 Brand Awareness Ad Recall Message Brand Purchase Intent Association Favourability 11 Source: Dynamic Logic MarketNorms-EU-FMCG, data through June 30, 2004; N=33 campaigns, n=25,273 respondents
  12. 12. 1d. Digital Fits In All Areas of The Purchase Cycle 12
  13. 13. 1d. Why: “The Internet is the Viagra of big business.” Jack Welch American Express Q2 Financial Presentation 13
  14. 14. 2. Your Audience Online a. Representative Of Population b. Advertising Lagging c. Highly Connected d. Changing Uses
  15. 15. 2a. Audience Online Is Representative Of Population Media Consumption Overall Media Consumption By Time Online multiple times (red) Women (white) overtook Online one (white) Men (red) online last year 15
  16. 16. 2b. Consumers Ahead Of Advertisers 16
  17. 17. 2c. Highest Internet Penetration in Europe Highest Internet Penetration in Europe Highest Broadband Penetration in Europe 17
  18. 18. 2d. Changing Uses Last quarter nearly 165 million videostrams have been watched – this translates to nearly 1.9 million videostreams per day! Changing Use Of Medium Grey – 2005 Red – 2007 Banking, buying, MSN-ing and leisure up. Emailing, looking up info regarding products/services or regarding work/education, and downloading software down. This is not due to that these things are done less….. They just are done less in comparison. 18
  19. 19. 3. Changing Audience Behaviour a. Create b. Connect c. Collaborate d. Challenge e. Control
  20. 20. 3a. Create: The Rise of the ProAm Business Automotive Logistics Entertainment Darth Big Business Micro Business Journalism Advertising A milllion blogs created in NL Sources: 20 Search “blog + name of sector” on Google Search “sector” on Facebook Apps Search “sector +ad” on YouTube
  21. 21. 3a. The Codex – UGC; Taken To The Max 21
  22. 22. 3b. Connecting: The Power of the Community 42% of Europeans communicate via social networking sites at least once a month – 3rd most popular activities online after search & email EIAA 07 22 Sources: Search “social network + name of sector” on Google Search “sector” on Facebook
  23. 23. 3b. Between #1 YouTube & #3 Google 75% of all dutch people who go online are part of one of the social networks. Last year this figure was 55%.... 23
  24. 24. 3c. Collaborate: A Global Brain 26% of Europeans share their thoughts on forums EIAA 07 24 Sources: Search “company name” or “competitor’s name” on Getsatisfaction.com, wikipedia.com,YahooAnswers and Linked-In questions
  25. 25. 3d. Challenge – Enough Is Enough 25 Sources: Search “company name” or “competitor’s name” on Getsatisfaction.com, wikipedia.com,YahooAnswers and Linked-In questions
  26. 26. 3e. Control: “My Media & Me-Messaging” MDs receive between 40 and 60 pieces of DM a fortnight… .. plus email, magazines, exhibition invites, telephone calls - Ogilvy BT pitch research 26 Sources: Generic stats & illustrations
  27. 27. 4. Shift In Marketing Required a. Be Social – Listen, Converse, Connect & Collaborate b. Be Useful – Inform, Entertain or Just Look Good c. Be Relevant – Customize, Personalise & Go To Audience d. Be Integrated – Across Channels, Real & Virtual Worlds
  28. 28. Above All – Experiment… NEED TO BE NEED TO CHANGE ACCOUNTABLE TRADITIONAL INNOVATION APPROACHES 28
  29. 29. Investment Marketing Safe Adventure Marketing Objective 29
  30. 30. 4a. Listen – People Are Talking About You Online Search Trends Blog Mentions Blog Mentions 30 Sources: Search “company name” or “competitor’s name” on Google Trends, Yahoo answers, Technorati & Blogpulse
  31. 31. 4a. Converse - Choose When To Talk Back Cisco Conversation Starwood Lurker Banner 31
  32. 32. 4a. Connect – Customers With Each Other Cisco C-Level Community Amex Open SME Community 32
  33. 33. 4a. Connect – Customers With Each Other 33
  34. 34. 4a. Connect – Workers With Each Other 34
  35. 35. 4 a. Collaborate – Co Create Content In The Motherhood 51% lift in unaided brand awareness and 27% lift in purchase intent. Doritos Superbowl 6th Most viewed & best liked commercial cost $12 35
  36. 36. 4a. Collaborate – Co Create Product & Experience Starbucks My Idea Dell Ideastorm 36
  37. 37. 4a. Collaboration – Harness Your Advocates Comfort Do Da Moves P&G Tremor 37
  38. 38. 4a. Help Them To Define Themselves 38
  39. 39. 4b. Be Useful Inform - Courtier Entertain – Court Jester Be Sexy – Courtesan
  40. 40. 4b. Be Useful –Inform IBM & The Times MBA Podcasts • 94,791 downloads of the MBA podcasts • 6,494 downloads of IBM whitepapers • 4,314 respondents for IBM brand study • Top 10 download for promotion • Top business download for 4 months 40
  41. 41. 4b. - Be Useful - Inform Comfort Baby Tips Kraft Mobile Recipes Hellman's Real Food Driving School 41
  42. 42. 4b. - Be Useful - Inform 42
  43. 43. 4b. - Be Useful - Entertain PUMA 77 Radio 43
  44. 44. 44
  45. 45. 4b. Be Useful – Entertain MSFT “Vanishing Point” IBM & CNBC Business of Innovation 45
  46. 46. 4b. Be Useful – Look Sexy MTV Knightmare Californian Milk Board – Get The Glass 46
  47. 47. 4c. Be Relevant Go to where they are Customise Give them stories to tell
  48. 48. 4c. Be Relevant – Be Where Your Audience Are Honda Easyjet Desktop Widget Route Planner Johnny Walker Concierge Economist Mobile Game Ikea Simms 48 AOL Lottery Microsite Awareness of online purchase up by 10% Repeat online purchase up 22%
  49. 49. 4c. Be Relevant – Be Where Your Audience Are 49
  50. 50. 4c. Be Relevant – “My Product” Nike ID Personal Trainers M&Ms My Flavours 50
  51. 51. 4c. Be Relevant – “My Product” My Muesli Kleenex Photo Boxes Pengiun Design Your Own Covers 51
  52. 52. 4c. Be Relevant - Make Them Part Of The Comms Addidas – The Rook 240,000 players Each player interacted 20 minutes 52
  53. 53. 4d. Integrate Across channels & business Blur the lines
  54. 54. 4d. Integrate – Blur The lines 54
  55. 55. 4d. Integrate – Blur The lines 55
  56. 56. 5. Solutions a. Rules b. Tools
  57. 57. 5b. Solutions - Thinking Digital MASTER IDEA/ASSET (TV) Site Banner Email Mobile DM Print 57
  58. 58. 5b. Solutions - Thinking Interactive Print Outdoor Ambient Event DM Site Banner Mobile TV Email 58
  59. 59. 5b. Solutions - Working Differently 59
  60. 60. 5b. Solutions - Focus On Customer Journey Awareness Interest Purchase Repeat Advocacy Audience Mindset Task Message Channel 60
  61. 61. 61
  62. 62. 5b. Solutions - Measure Everything Response Metrics Brand Tracking Monitor Conversation Impressions/Viewed Earned media Brand Awareness # Offline & Online media mentions Clicked/Responded Message # Association Arrived Search # Increased Cost per Action searches Brand Conversion Action/Activity Higher search Favourability # results % £ Greater results Purchase share Purchase Consideration # Word of Mouth # posts/blog Repeat mentions Purchase Mentions per # user Likelihood to Advocacy Inbound links recommend # Send to friend 62
  63. 63. 5a. Solutions - 6 Golden Rules • Redefine audience – When & Where, Not Who • Risk marketing – 80/20 – Traditional/Experiment • Permanent beta – Ready, Fire, Aim • Turn budgets on their heads – Swop media for production • Don’t panic – Marketing is still marketing • Stand for something – Open source your brand 63
  64. 64. Nike: Now & Then 64
  65. 65. Simple works too… 65
  66. 66. Open Source Your Brand Dove believes the world would be better if women were allowed to feel good about themselves. Dove Campainforrealbeauty.com 66
  67. 67. A Single Unifying Big Ideal - Dove Dove 67
  68. 68. 68
  69. 69. Thank You giles.rhysjones@ogilvy.com
  70. 70. Appendix a. What is hot or not
  71. 71. Emerging Channels – Temperature Check… Gaming In game product placement favoured over in-game advertising. Game Product Placement developers increasingly looking to partner with brands to help enhance the in- game experience (e.g. Sony Home) As gaming audience increases, and distribution of games on the mobile Branded Games/Mobile Games increases, more brands are exploring developing their own branded games Arguably the hottest trend of the moment…although not easy to define. ARGs Alternative Reality Gaming companies are driving results and winning EMMY’s. Brands are favouring product placement and actual branded games over in- In-Game Advertising game advertising Community Apps (e.g. Facebook), Branded Channels (e.g. Myspace), and Campaign Social Networks Integration (e.g. Nike Artists 1/1) continue to increase Brands continue to developing both closed and open brand Branded Communities communities…seemingly at an increasing rate Increasing activity in this area. Starbuck “My Idea” the latest to gain attention Customer Advisory Panels Still a test and learn proposition Virtual Worlds Hot Warm – heating up Warm – cooling down Cold 71
  72. 72. Emerging Channels – Temperature Check… Mobile On/Off Portal Advertising Off portal favoured. Cross-carrier mobile Networks enabling greater targeting and broader reach. SMS Key component helping to extend, integrate, and make marketing campaigns more accountable WAP Sites Becoming standard and key part of integrated marketing campaigns Applications Downloadable on device micro apps increasing (includes mobile games). Seeing migration from ringtones to more sophisticated applications. MMS/Video Use of video on mobile increasing (sending video, viewing movies, etc.) Payments In use in AP, and NCF pilots in progress in EMEA, but widespread adoption still a ways off Coupons Increasing in use as retailers convert to 2d scanners Digital Dialogue RSS Commonly used. Advertising opportunities within feeds increasing. SMS As use of mobile increases so too will use of SMS as a channel for dialogue with brands (as opposed to email). Target SMS sponsorship opportunities continue to increase. Blogs/Micro-blogging Used most by brands for PR and Customer Advocacy. Seeing evolution to “micro-blogging” (e.g. Twitter) Influencer Marketing Brands recognize importance of influencing the influencers, but B-to-C brands still working out best to identify, reach, and engage key influencers. B-to-B brands (IBM, Cisco, etc.) have been more successful to date. Podcasting/Video Casting Used most by brands for PR and Customer Advocacy. Seeing evolution to “videocasting”. Hot Warm – heating up Warm – cooling down Cold 72
  73. 73. Emerging Channels – Temperature Check… Broadband/Advanced TV Interactive TV has been talked about for a long time, but lack of standards and ITV competing technology remain key hurdles to mass adoption While some brand have had problems (e.g. Budweiser) other large brands Branded Channels continue to invest (e.g. Sony/T. Hilfiger, Mercedes, etc.). Presumably link to key business metrics remains largest hurdle. As IPTV companies like Joost and Veoh gain traction and customers/audiences, IPTV Advertising opportunities for advertiser integration will increase (e.g. BMW/Joost partnership) Watch this space. Many pilots in progress (e.g. Spot Runner) and expect that this Addressable TV will give TV a new lease on life. Branded Content Brands continue to move media dollars to content production in and effort Original Content improve engagement with prospects and customers Collaboration among affinity brands on content, products, marketing programs, Co-developed Content etc. continues to increase in an effort tap into relevant expertise, share costs, and reach new audiences. Brands increasingly providing users with a forum it which create, share, and UGM/CGM distribute their own content Hot Warm – heating up Warm – cooling down Cold 73
  74. 74. Emerging Channels – Temperature Check… Widgets Seeing increase in modules or “gadgets” beings shared across blogging and social networking Web Widgets sites Still hot, but as mobile matures expect to see migration of this functionality from desktop to Desktop Widgets mobile handset Google gadgets ads provide a look into what’s to come… Banner Widgets OOH/POS Improved technology and Increase scalability and interactive billboards, kiosks, etc. Out of Home Digital tactics increasingly being leverage to enhance pre-sale experience or improve the sales Point of Sale experience. Hot Warm – heating up Warm – cooling down Cold 74

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