DigiMarketing Seminar AsiaSoft

New Media & Marketing in the 21st century…starting with a downturn
Dr Ian Fenwick
Sasin Graduate Institute of Business Administration
AsiaSoft, July 15, 2009

frogs jump…
will you?

what is digimarketing?

NOT digital marketing
http://en.wikipedia.org/wiki/File:The_Thumbs-up_position.jpg, Steven H. Keys and http://www.keysphotography.com, http://en.wikipedia.org/wiki/File:OK_Sign.jpg, http://en.wikipedia.org/wiki/File:The_gesture02.jpg, Licensed under Creative Commons Attribution ShareAlike 2.0 License http://www.filmstudion.se/This_01.jpg

definitely NOT digital marketing
http://en.wikipedia.org/wiki/File:The_Thumbs-up_position.jpg, Steven H. Keys and http://www.keysphotography.com, http://en.wikipedia.org/wiki/File:OK_Sign.jpg, http://en.wikipedia.org/wiki/File:The_gesture02.jpg, Licensed under Creative Commons Attribution ShareAlike 2.0 License http://www.filmstudion.se/This_01.jpg

“
Digital Marketing, digimarketing, is the evolution of marketing.
It happens when the majority, or totality, of a company’s marketing uses digital channels.

are you doing digital marketing right now?

“
…the future is already here.
It's just not very evenly distributed.
WilliamGibson

1
2
3
opportunity
digital media
difference

3
1
opportunity
2

why a digimarketing opportunity?
under spent

Internet penetration 2007
1.4 billion +
www.internetworldstats.com/
http://en.wikipedia.org/wiki/Image:Internet_users_en_2007.PNG

% Advertising Dollars Spent Online
% Consumer Time Spent Online
marketing lag
Source:Neo@Ogilvy

Asia 40%
China 253 million
19%
Internet penetration 2007
1.4 billion +
www.internetworldstats.com/
http://en.wikipedia.org/wiki/Image:Internet_users_en_2007.PNG

Internet users, end 2008
>
Top 10 Developed
Markets
Top 10 Emerging Markets
USA, Japan, Germany, UK, France, Italy, Spain, Canada, S Korea, Australia
Brazil, Russia, India, China, Mexico, Turkey, Indonesia, Iran, Poland, Saudi Arabia
Technology/Internet Trends, Mary Meeker , presentation at Web 2.0 Summit, Nov 5 2008,

Thailand: 13m 20%
Bangkok:
biz decision-makers 80%
top management 93%
Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008

Hours/week, upmarket adults, Bangkok
hours/ week
14
Internet (excl. email)
1.1%
19
TV
Magazines
Newspapers
54%
5
% of total mktg spend Thailand, 2008
18%
5
Magazines
6%
Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook

Hours/week, upmarket adults, Bangkok
25-34 years old,
hours/ week
17
1.1%
17
TV
TV
Newspapers
Magazines
54%
4
% of total mktg spend Thailand, 2008
18%
5
6%
Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook

1.1% of marketing funds get spent on internet
over 5 x more spent on cinema
over 6 x more spent on outdoor
almost 7 x more spent on radio
over 16 x more spent on newspapers
almost 50 x more spent on TV
Source: GroupM – 2008 Media Outlook

mis-allocation of resources

under spent
the future

digital will predominate

“
it is not the strongest of the species that survives…
nor the most intelligent…
it is the one most adaptable to change

easier to learn if you start early…
and you never forget
Source: www.stockphotos.com

under spent
the future
trackable

“
Half the money I spend on advertising is wasted;
the trouble is I don't know which half
John Nelson Wanamaker (1838 –1922)
From the George Grantham Bain collection at the Library of Congress. According to the library, there are no known restrictions on the publication of these photos. http://en.wikipedia.org/wiki/File:Johnny-Wanamaker2.jpg

Best Practices for Optimizing Web Advertising Effectiveness, R E Bruner and M Gluck, Doubleclick May 2006
http://www.doubleclick.com/insight/gallery/examples/dolby-ocean.asp
http://www.doubleclick.com/insight/gallery/examples/dolby-storm.asp

Cost per Click
Cost per Action

under spent
the future
trackable

3
1
opportunity
2

3
2
digital media
1

how are digital media different?
common language

Quick Response (QR) Code
for North West Airlines

Source: Ogilvy, Japan

Oglivy: Japan

Source: Ogilvy, Japan

common language
new media model

To find something comparable, you have to go back 500 years to the printing press, the birth of mass media….
Technology is shifting power away from the editors, the publishers, the establishment, the media elite.
Now it’s the people who are taking control
“His Space,” Spencer Reiss July 2006

Traditional Media Model
modest returns to creators
expensive channel, production & filtering
$$$eyeballs
creatives
publishers, editors
bookstores, news stands, TV/radio stations
consumers

Consumers Generate Content
Internet Publication
Internet Distribution
near free channel, free peer filtering
Consumers
Generate Content
New Media Model

Posted Nov 20, 2003
1 million+ downloads in 6 weeks

Perez Hilton
paid circulation
2007 <4 million
1.7 m unique visitors (US only)
33-48 m page-views (May 2007)
ComScore, Nielsen NetRatings
http://perezhilton.com/?p=2601, http://gawker.com/news/welcome-to-the-internet/the-truth-about-perez-hiltons-traffic-276369.php

common language
new media model
mobile

World population?
6.6 b
1.4 b
Internet users?
1.3 b
Landline phones?
1.4 b
Credit cards?
1.5 b
TV sets?
3.3 b
Mobile phone subscribers?
61.9m
Thailand?
http://www.itu.int/ITU-D/ict/newslog/Indonesia+Overtakes+Japan+To+Take+Third+Place+In+Asia+Subscriber+Rankings.aspx
Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

1st SMS sent December 3, 1992
how many sent in 2007?
http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research

5,000,000,000 +

5,000,000,000 +
daily
almost 2 trillion p.a.

5,000,000,000 +
% sent in Asia Pacific?

78.9%
http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner study

how does your website look
on mobiles?

common language
new media model
mobile
unique

Canon Rebel 350
3 years old, #560151117

collect data, drop by drop
personalizecontent

Augmented Reality
http://www.mobvis.org/demos.htm

3
2
digital media
1

3
difference
1
2

4 P’s of marketing
Promotion
Place
Price
Product

4 P’s of digimarketing
clear opt-in
easy opt-out
customer-chosen content & frequency
contextual relevance
Permission

claims 10 million downloads
240,000 per week
www.Sanook.com

Source: OgilvyOne, Hong Kong, 2008, The HyperFactory, XS2TheWorld

Participation
clear opt-in
easy opt-out
customer-chosen content & frequency
contextual relevance
Permission

Source: OgilvyOne, Thailand

MK GAME

read blogs?

Readingblogs % of active internet users (using internet at least every other day), 16-54 years old, March 2008
70%
50%
read at least weekly
Power to the People Social Media Tracker, Wave 2, Universal McCann, 2008, surveyed 17,000 internet users (using everyday or every-other-day, 16-54 year-olds) in 29 countries

Started my own blog % of active internet users 16-54 years old, March 2008
35%
21%
write at least weekly
Power to the People Social Media Tracker, Wave 2, Universal McCann, 2008, surveyed 17,000 internet users (using everyday or every-other-day, 16-54 year-olds) in 29 countries

Digital respect

belong to a social networking
site?

social networks
www.facebook.comwww.myspace.comwww.mixi.jpwww.cyworld.co.kr

Facebook
200 m
Nov 2008
132 m unique visitors, June 2008world’s fastest growing social networking site
www.facebook.com www.myspace.com www.mixi.jp www.cyworld.co.kr 9
http://www.techcrunch.com/2008/08/12/facebook-is-not-only-the-worlds-largest-social-network-it-is-also-the-fastest-growing/
http://www.briansolis.com/2009/03/twitter-and-social-networks-usher-in/

Facebook
200 m
Nov 2008
1/3 of global audience is 35-49; 1/4 is over 50
www.facebook.com www.myspace.com www.mixi.jp www.cyworld.co.kr 9
http://www.techcrunch.com/2008/08/12/facebook-is-not-only-the-worlds-largest-social-network-it-is-also-the-fastest-growing/
http://www.briansolis.com/2009/03/twitter-and-social-networks-usher-in/

widget
http://www.facebook.com/apps/application.php?id=2841359929&b=&ref=pd_r
http://www.wilhelmus.ca/2007/11/gotta_ski_bc_facebook_applicat.html

8th most popular Page on all of Facebook
over 3.5 million fans
http://pagedata.insidefacebook.com/

How much do you trust the following information sources?
http://www.readwriteweb.com/archives/corporate_blogs_trust.php

…can’t imagine why

…can’t imagine why
"As you know, I am an Apple fanatic, but this deal even has me looking twice. Our computer buyer has put together this!
The Blitz ad says $350 but Santa called and challenged him to do better. So now Sam’s is at new price of $345 and an additional $20 case value is included.
This is an 8.9" WSVGA Acer CrystalBrite TFT LCD (1024 x 600) with an Intel Atom Processor, 1GB Memory, 120GB Hard Drive and a Crystal Eye Webcam.
WOW. That information tells me that Sam’s really put together a great item for our Members! This unit is great for surfing the net, e-mail and is a nice netbook."

http://en.community.dell.com/blogs/direct2dell/

http://www.engadget.com/2006/06/22/dude-your-dell-is-on-fire/

“
In just a few more years, the current homogenized ‘voice’ of business
the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th-century French court."
The Cluetrain Manifesto, 1999www.cluetrain.com

“
In just a few more years, the current homogenized ‘voice’ of business
authenticity
challenged
the sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th-century French court."
The Cluetrain Manifesto, 1999www.cluetrain.com

it’s not advertising, “it’s just a really cool way to say goodbye”
Source: OgilvyOne, Hong Kong, 2008,

read
on-line
reviews?

#2 driver of purchase decisions (#1: personal advice from friend)
user reviews more influential than 3rd party reviews1
86% read before buying(90% trust)2
70% who read reviews share them with friends, family, or colleagues3
1"Web users and web community," Rubicon Consulting, Inc. October 2008
2 Kudzu.com survey of 600 users, December 2008
3Deloitte & Touche, September 2007
All quotes from www.bazaarvoice.com/industryStats.html

62% of brand-related talk features products in a positive light
< 1% feature products negatively
www.imediaconnection.com/content/13386.asp

of course, it isn’t all good, all the time…

“Social Technographics Ladder”
21%
37%
19%
35%
69%
25%
US: 2008
http://blogs.forrester.com/groundswell/2008/10/new-2008-social.html
North American Social Technographics Online Survey Q2 2007
http://www.forrester.com/Groundswell/profile_tool.html
North American Social Technographics Media and Marketing Online Survey Q2 2008

heard of Twitter?
do you tweet?

February 2008 < .5 m unique users
February 2009 > 7 m unique users
Largest age group? 35-49 year olds (3m)
www.Twitter.com/DrIanFenwick
http://www.readwriteweb.com/archives/twitter_passes_nyt_wsj_in_unique_visitors.php

Solving customer problems quickly

“
Virgin’s perspective about social media isn’t a marketing channel but an engagement channel.
We ask our community to answer questions. We love social media.
Porter Gale, V-P Marketing Virgin America
http://www.techcrunch.com/2009/07/10/crunchup-live-real-time-business/

do you know what people say about you?

www.serph.com
www.monitter.com
http://spy.appspot.com
www.blogpulse.com

Profile
opportunities to review,
to comment,
to tag
to upload
to engage
social CRM
Participation
Permission

Personalization
collect data, quizes, games
drop by drop
build participant insights
link to physical channels
Profile
Participation
Permission

Personalization
create relevant personalization
Profile
Participation
Permission

3
difference
1
2

1
2
3
opportunity
digital media
difference

$150,000
6-months
caretaker & blogger on Great Barrier Reef
1 million visits in 7 days
Tourism Queensland www.IslandReefJob.com

over 35,000 applicants
http://www.worldtravelguide.net/news/3407/news/And-the-real-winner-is%85-the-Australian-tourism-board.html

“
But…blog sites and internet forums have been buzzing with complaints since the weekend,
when the Tourism Queensland website crashed on the eve of the competition deadline
…as the website was flooded with more than 7000 applications at once.
…The furious 51-year-old professional photographer…slammed the promoter
…sending out a mass email with the subject line "The worst run contest in the world”

“
Tourism Queensland grossly underestimated the demand," Mr Cook said.
"Surprised by 30,000 entries? You've got to be kidding…
“…they should have expected at least 100,000 entries and planned for 500,000.

“
Dude, you can’t take something off the internet…
that’s like trying to take a pee out of a swimming pool
Joe Rogan, Newsradio

www.slideshare.net/ian.fenwick
www.twitter.com/DrIanFenwick
www.DigiMarketingNow.com

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DigiMarketing Seminar AsiaSoft

by ian fenwick on Jul 14, 2009

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DigiMarketing Seminar AsiaSoft — Presentation Transcript