The Role of Digital Marketing in Current Digital AgeDr Ian FenwickSasin Graduate Institute of Business AdministrationBangkokBizNews, July 24, 2009NPS Photo

what is digimarketing?

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

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

123opportunitydigital mediadifference

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why a digimarketing opportunity?under spent

Internet penetration 20091.6 billion +www.internetworldstats.com/http://en.wikipedia.org/wiki/Image:Internet_users_en_2007.PNG

% Advertising Dollars Spent Online% Consumer Time Spent Onlinemarketing lagSource:Neo@Ogilvy

Internet users, end 2008>Top 10 DevelopedMarketsTop 10 Emerging MarketsUSA, Japan, Germany, UK, France, Italy, Spain, Canada, S Korea, AustraliaBrazil, Russia, India, China, Mexico, Turkey, Indonesia, Iran, Poland, Saudi ArabiaTechnology/Internet Trends, Mary Meeker , presentation at Web 2.0 Summit, Nov 5 2008,

Thailand: 13.5m 21%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 2008www.internetworldstats.com/stats3.htm#asia

Media use, hours/week, upmarket adults, Bangkok,hours/week14Internet (excl. email)1.1%19TVMagazinesNewspapers54%5% of total mktgspend Thailand, 200818%56%Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook

Media use, hours/week, upmarket adults, Bangkok,25-34 years old,hours/week17Internet (excl. email)Internet (excl. email)1.1%17TVNewspapersMagazines54%4% of total mktgspend Thailand, 200818%56%Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008Sources: 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 cinemaover 6 x more spent on outdooralmost 7 x more spent on radioover 16 x more spent on newspapersalmost 50 x more spent on TVSource: GroupM – 2008 Media Outlook

mis-allocation of resources

why a digimarketing opportunity?under spentthe 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 forgetSource: www.stockphotos.com

why a digimarketing opportunity?under spentthe futuretrackable

“ Half the money I spend on advertising is wasted; the trouble is I don't know which halfJohn 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 2006http://www.doubleclick.com/insight/gallery/examples/dolby-ocean.asphttp://www.doubleclick.com/insight/gallery/examples/dolby-storm.asp

Cost per ClickCost per Action

why a digimarketing opportunity?under spentthe futuretrackable

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how are digital media different?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 Modelmodest returns to creatorsexpensive channel, production & filtering$$$eyeballscreativespublishers, editorsbookstores, news stands, TV/radio stationsconsumers

Consumers Generate ContentInternet PublicationInternet Distributionmodest returns to creatorsnear free channel, free peer filteringmodest returns to creatorsConsumers Generate ContentNew Media Model

Posted Nov 20, 20031 million+ downloads in 6 weeks

read blogs?

Readingblogs % of active internet users (using internet at least every other day), 16-54 years old, March 200870%50%read at least weeklyPower 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 200835%21%write at least weeklyPower 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

Thinking about using the internet, which of the following have you done? Start my own blog (% of population 16-54 year-olds)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

Perez Hilton ComScore, Nielsen NetRatingshttp://perezhilton.com/?p=2601, http://gawker.com/news/welcome-to-the-internet/the-truth-about-perez-hiltons-traffic-276369.php

heard of Twitter?do you tweet?

www.Twitter.com/DrIanFenwickhttp://www.readwriteweb.com/archives/twitter_passes_nyt_wsj_in_unique_visitors.php

Solving customer problems quicklySolving 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.”20,000+ followers on twitter: most common question: should I fly Virgin?“the community closes the sale” Porter Gale, V-P Marketing Virgin America http://www.techcrunch.com/2009/07/10/crunchup-live-real-time-business/

how are digital media different?new media modelmobile

World population?Internet users?Landline phones?Credit cards?TV sets?Mobile phone subscribers?Thailand?http://www.itu.int/ITU-D/ict/newslog/Indonesia+Overtakes+Japan+To+Take+Third+Place+In+Asia+Subscriber+Rankings.aspxCommunities 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?% sent in Asia Pacific?http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research

how does your website look on mobiles?

how are digital media different?new media modelmobileunique

Canon Rebel 3503 years old, #560151117

collect data, drop by droppersonalizecontent

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4 P’s of marketingPromotionPlacePriceProduct

4 P’s of digimarketingclear opt-ineasy opt-outcustomer-chosen content & frequencycontextual relevancePermission

clear opt-in

easy opt-out

customer-chosen content & frequency

contextual relevance

claims 10 million downloads 240,000 per weekwww.Sanook.com

Participationclear opt-ineasy opt-outcustomer-chosen content & frequencycontextual relevancePermission

clear opt-in

easy opt-out

customer-chosen content & frequency

contextual relevance

Source: OgilvyOne, Thailand

MK GAME

belong to a social networking site?

social networkswww.facebook.comwww.myspace.comwww.mixi.jpwww.cyworld.co.kr

Facebook132 m unique visitors, June 2008world’s fastest growing social networking sitewww.facebook.com www.myspace.com www.mixi.jp www.cyworld.co.kr 9http://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/

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"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://www.readwriteweb.com/archives/corporate_blogs_trust.php

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

read on-line reviews?

#2 driver of purchase decisions (#1: personal advice from friend)user reviews more influential than 3rd party reviews186% read before buying(90% trust)2 70% who read reviews share them with friends, family, or colleagues31"Web users and web community," Rubicon Consulting, Inc. October 20082 Kudzu.com survey of 600 users, December 20083Deloitte & Touche, September 2007All quotes from www.bazaarvoice.com/industryStats.html

#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

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

do you know what people say about you?

www.serph.comwww.monitter.comhttp://spy.appspot.comwww.blogpulse.com

4 P’s of digimarketingProfileopportunities to review, to comment, to tag to uploadto engagesocial CRMParticipationPermission

opportunities to review,

to comment,

to tag

to upload

to engage

social CRM

4 P’s of digimarketingPersonalizationcollect data, quizes, gamesdrop by dropbuild participant insights link to physical channelsProfileParticipationPermission

collect data, quizes, games

drop by drop

build participant insights

link to physical channels

123opportunitydigital mediadifference

www.slideshare.net/ian.fenwickwww.twitter.com/DrIanFenwickwww.DigiMarketingNow.com