The Role Of Digital Marketing

The Role of Digital Marketing in Current Digital Age
Dr Ian Fenwick
Sasin Graduate Institute of Business Administration
BangkokBizNews, July 24, 2009
NPS 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

1
2
3
opportunity
digital media
difference

3
1
opportunity
2

why a digimarketing opportunity?
under spent

Internet penetration 2009
1.6 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

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: 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 2008
www.internetworldstats.com/stats3.htm#asia

Media use, hours/week, upmarket adults, Bangkok,
hours/week
14
Internet (excl. email)
1.1%
19
TV
Magazines
Newspapers
54%
5
% of total mktgspend Thailand, 2008
18%
5
6%
Sources: 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/week
17
1.1%
17
TV
Newspapers
Magazines
54%
4
% of total mktgspend 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?
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

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

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 NetRatings
http://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/DrIanFenwick
http://www.readwriteweb.com/archives/twitter_passes_nyt_wsj_in_unique_visitors.php

Solving customer problems quickly
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.”
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/

new media model
mobile

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.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?
% 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?

new media model
mobile
unique

Canon Rebel 350
3 years old, #560151117

collect data, drop by drop
personalizecontent

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

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

Source: OgilvyOne, Thailand

MK GAME

belong to a social networking
site?

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

Facebook
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/

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 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

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

1
2
3
opportunity
digital media
difference

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

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The Role Of Digital Marketing

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