Customer Futures
How Digital Is Changing The Marketing Landscape
19/6/08

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

Interactive @ Ogilvy
The largest digital network in the world
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Digital Is Not A Discipline…
It is A Specialism Within A Discipline
PR ADVERTISING DIRECT RETAIL ACTIVATION
DIGITAL
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1. Evolving Marketing Place
a) Marketing under pressure,
b) What marketers are saying,
c) What marketers are doing,
d) Key reasons why,

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.”
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1a New Marketing Channels Explosion
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1a New Marketing Channels Explosion
McKinsey, Investment Marketing
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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
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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 –
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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
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Source: Dynamic Logic MarketNorms-EU-FMCG, data through June 30, 2004; N=33 campaigns,
n=25,273 respondents

1d. Digital Fits In All Areas of The Purchase Cycle
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1d. Why: “The Internet is the Viagra of big business.”
Jack Welch
American Express Q2 Financial Presentation
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2. Your Audience Online
a. Representative Of Population
b. Advertising Lagging
c. Highly Connected
d. Changing Uses

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
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2b. Consumers Ahead Of Advertisers
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2c. Highest Internet Penetration in Europe
Highest Internet
Penetration in Europe
Highest Broadband
Penetration in Europe
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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.
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3. Changing Audience Behaviour
a. Create
b. Connect
c. Collaborate
d. Challenge
e. Control

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:
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Search “blog + name of sector” on Google
Search “sector” on Facebook Apps
Search “sector +ad” on YouTube

3a. The Codex – UGC; Taken To The Max
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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
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Sources:
Search “social network + name of sector” on Google
Search “sector” on Facebook

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%....
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3c. Collaborate: A Global Brain
26% of Europeans share their thoughts on forums
EIAA 07
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Sources:
Search “company name” or “competitor’s name” on Getsatisfaction.com,
wikipedia.com,YahooAnswers and Linked-In questions

3d. Challenge – Enough Is Enough
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Sources:
Search “company name” or “competitor’s name” on Getsatisfaction.com,
wikipedia.com,YahooAnswers and Linked-In questions

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
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Sources:
Generic stats & illustrations

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

Above All – Experiment…
NEED TO BE
NEED TO CHANGE
ACCOUNTABLE
TRADITIONAL
INNOVATION
APPROACHES
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Investment Marketing
Safe
Adventure
Marketing Objective
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4a. Listen – People Are Talking About You Online
Search Trends
Blog Mentions
Blog Mentions
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Sources:
Search “company name” or “competitor’s name” on Google Trends, Yahoo answers,
Technorati & Blogpulse

4a. Converse - Choose When To Talk Back
Cisco Conversation
Starwood Lurker
Banner
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4a. Connect – Customers With Each Other
Cisco C-Level Community
Amex Open SME Community
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4a. Connect – Customers With Each Other
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4a. Connect – Workers With Each Other
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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
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4a. Collaborate – Co Create Product & Experience
Starbucks My Idea
Dell Ideastorm
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4a. Collaboration – Harness Your Advocates
Comfort Do Da Moves P&G Tremor
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4a. Help Them To Define Themselves
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4b. Be Useful
Inform - Courtier
Entertain – Court Jester
Be Sexy – Courtesan

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
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4b. - Be Useful - Inform
Comfort Baby Tips
Kraft Mobile Recipes
Hellman's Real Food
Driving School
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4b. - Be Useful - Inform
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4b. - Be Useful - Entertain
PUMA 77 Radio
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4b. Be Useful – Entertain
MSFT “Vanishing Point”
IBM & CNBC Business of Innovation
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4b. Be Useful – Look Sexy
MTV Knightmare
Californian Milk Board – Get The Glass
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4c. Be Relevant
Go to where they are
Customise
Give them stories to tell

4c. Be Relevant – Be Where Your Audience Are
Honda
Easyjet Desktop Widget Route Planner
Johnny Walker Concierge
Economist Mobile Game
Ikea
Simms
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AOL Lottery Microsite
Awareness of online purchase up by 10%
Repeat online purchase up 22%

4c. Be Relevant – Be Where Your Audience Are
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4c. Be Relevant – “My Product”
Nike ID Personal Trainers
M&Ms My Flavours
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4c. Be Relevant – “My Product”
My Muesli
Kleenex Photo Boxes
Pengiun Design
Your Own Covers
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4c. Be Relevant - Make Them Part Of The Comms
Addidas – The Rook
240,000 players
Each player interacted 20 minutes
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4d. Integrate
Across channels & business
Blur the lines

4d. Integrate – Blur The lines
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4d. Integrate – Blur The lines
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5. Solutions
a. Rules
b. Tools

5b. Solutions - Thinking Digital
MASTER
IDEA/ASSET
(TV)
Site Banner Email Mobile DM Print
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5b. Solutions - Thinking Interactive
Print Outdoor Ambient Event DM
Site Banner Mobile TV Email
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5b. Solutions - Working Differently
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5b. Solutions - Focus On Customer Journey
Awareness Interest Purchase Repeat Advocacy
Audience
Mindset
Task
Message
Channel
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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
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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
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Nike: Now & Then
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Simple works too…
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Open Source Your Brand
Dove believes the world
would be better if women
were allowed to feel good
about themselves.
Dove
Campainforrealbeauty.com
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A Single Unifying Big Ideal - Dove
Dove
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Thank You
giles.rhysjones@ogilvy.com

Appendix
a. What is hot or not

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
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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
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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
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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
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