Digital communications 2011 student version


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a 4 hours session on Digital Comms

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Digital communications 2011 student version

  1. 1. Digital Communications
  2. 2. Overview <ul><li>Trends in online; online consumer behaviour; </li></ul><ul><li>search engine optimisation; </li></ul><ul><li>affiliates; email marketing; </li></ul><ul><li>advertising, </li></ul><ul><li>mobile marketing </li></ul><ul><li>Blogging & social media; IPTV and in-game; comparison & voucher sites; PR & reputation management </li></ul>2011 Tom Chapman
  3. 3. The Internet – a definition resolved Federal Networking Council (1995) <ul><li>&quot;Internet&quot; refers to the global information system that -- 

(i) is logically linked together by a globally unique address space based on the Internet Protocol (IP) or its subsequent extensions/follow-ons;

(ii) is able to support communications using the Transmission Control Protocol/Internet Protocol (TCP/IP) suite or its subsequent extensions/follow-ons, and/or other IP-compatible protocols; and 

(iii) provides, uses or makes accessible, either publicly or privately, high level services layered on the communications and related infrastructure described herein.&quot; </li></ul>2011 Tom Chapman
  4. 4. Who Governs the Internet? <ul><li>A number of different organisations that influence the Internet and monitor its operations including: </li></ul><ul><ul><li>Internet Architecture Board (IAB) </li></ul></ul><ul><ul><li>Internet Corporation for Assigned Names and Numbers (ICANN) </li></ul></ul><ul><ul><li>Internet Engineering Steering Group (IESG) </li></ul></ul><ul><ul><li>Internet Engineering Task Force (IETF) </li></ul></ul><ul><ul><li>Internet Society (ISOC) </li></ul></ul><ul><ul><li>World Wide Web Consortium (W3C) </li></ul></ul>
  5. 5. Technologies <ul><li>Mashups </li></ul><ul><li>Blogging </li></ul><ul><li>Podcasting </li></ul><ul><li>RSS </li></ul><ul><li>Wikipedia </li></ul><ul><li>Flickr </li></ul><ul><li>Bittorrent </li></ul><ul><li>AJAX </li></ul><ul><li>Social Media Networks </li></ul><ul><li>Google </li></ul><ul><li>MMORPG </li></ul><ul><li>Wii / PS3 / Xbox </li></ul><ul><li>Smartphones </li></ul><ul><li>Tablets </li></ul><ul><li>WiFi </li></ul><ul><li>EDI </li></ul><ul><li>Cloud Computing </li></ul><ul><li>The Grid </li></ul>
  6. 6. Key Technology Drivers <ul><li>Mobile Devices </li></ul><ul><li>Control Mechanisms </li></ul><ul><li>Lifestyle Integration </li></ul><ul><li>Connection Speed </li></ul><ul><li>Power Consumption / Regeneration </li></ul>
  7. 7. Different Roles of Digital Media (Pelkonen, 2003)
  8. 8. Impact of Internet Marketing <ul><li>Market expansion </li></ul><ul><ul><li>increased value-added, reduced costs </li></ul></ul><ul><li>Abolition of geographical constraints </li></ul><ul><ul><li>potentially limitless reach, without loss of richness </li></ul></ul><ul><li>Huge potential transaction cost savings </li></ul><ul><ul><li>revolutionary, rather than incremental </li></ul></ul><ul><li>Impacts up and down the value chain </li></ul><ul><ul><li>cumulative impact for end users </li></ul></ul><ul><li>Potential for interactivity with customers </li></ul><ul><ul><li>mass customisation, one-to-one relationships </li></ul></ul>
  9. 9. How is the Internet Different? <ul><li>Overcomes physical boundaries and distance </li></ul><ul><ul><li>Larger market </li></ul></ul><ul><ul><li>Greater efficiencies </li></ul></ul><ul><li>Greater targeting </li></ul><ul><ul><li>Lower cost of acquiring information about a segment </li></ul></ul><ul><li>Interactive two way communication </li></ul><ul><li>Internet goes beyond segmentation to fragmentation allowing tailoring to individuals </li></ul><ul><li>Greater information, quality information, detailed information </li></ul><ul><li>Allows for anticipatory marketing </li></ul><ul><li>Improved transaction efficiency </li></ul>
  10. 10. How is it the same? <ul><li>Virtual activities do not eliminate the need for physical activities </li></ul><ul><li>Internet does not necessarily offer lower prices to customers (why should it?) </li></ul><ul><li>Many products and services are the same on or off line. </li></ul><ul><li>Internet may offer convenience and richness of information but there is the possibility of information overload, risk, trust and privacy loss </li></ul>
  11. 11. Interactive potential <ul><li>Arnott and Bridgewater (2002) </li></ul><ul><ul><li>Many companies slow to realise interactive potential (info provision only) </li></ul></ul><ul><ul><ul><li>Maybe a transitional stage for existing firms </li></ul></ul></ul><ul><ul><li>Larger firms more sophisticated in use made of Internet </li></ul></ul><ul><ul><ul><li>Could help smaller firms to even the odds? </li></ul></ul></ul><ul><ul><li>No evident difference between product and service firms ’ use of Internet </li></ul></ul><ul><ul><li>No clear geographical picture </li></ul></ul><ul><ul><li>Greater international involvement linked to more sophisticated use of Internet interactivity (for all sizes of firm) </li></ul></ul><ul><ul><li>How ready are customers to respond? </li></ul></ul>
  12. 12. Top 10 Internet markets, 2010 2011 Tom Chapman Internet: Average hours spent in the last 30 days Germany 20.30 Great Britain 18.90 France 18.50 Portugal 18.30 Turkey 17.70 Republic of Ireland 16.30 Northern Ireland 16.00 Spain 15.50 South Africa 15.20 Saudi Arabia 14.80 © TGI
  13. 13. Online Consumer Behaviour
  14. 14. Global Mobile Network Consumer Internet Video Traffic PB/Month, 2010-2015 Media forecasts Compound Annual Growth Rate, 2010-2015: 108% Source: Cisco Visual Networking Index, 2011 Extracted from: Cisco Visual Networking Index: Forecast & Methodology, 2010-2015 To click through to article, use Slide Show view
  15. 15. Global Consumer Mobile Internet Gaming Traffic PB/Month, 2010-2015 Media forecasts Compound Annual Growth Rate, 2010-2015: 110% Source: Cisco Visual Networking Index, 2011 Extracted from: Cisco Visual Networking Index: Forecast & Methodology, 2010-2015 To click through to article, use Slide Show view
  16. 16. Online Shopping Behaviour Clark & Wright (2007).
  17. 17. Advertising
  18. 18. Truong & Simmons (2010, p.240) <ul><li>“ Harker (2008, p. 296) defines online or Internet advertising as, ‘ any form of commercial content available on the internet, delivered by any channel, in any form, designed to inform customers about a product or service at any degree of depth ’ . </li></ul><ul><li>Jensen (2008) states that internet advertising consists of three primary constituents: display advertising – which includes banners, pop-ups and interstitials; search engine optimization (SEO) and search engine marketing (SEM) – including paid and unpaid SEO and SEM (e.g. Google Adwords); and, affiliate programs, where a marketer’s link (e.g. Amazon) is provided on a host’s website. A further constituent is email, paid for advertising in that most firms utilize email marketing hardware/software, and customer lists that are bought in (Merisavo & Raulas, 2004).” </li></ul>2011 Tom Chapman
  19. 19. UK Digital Media Mix (IAB) 2011 Tom Chapman
  20. 20. Advertising UK (IAB) 2011 Tom Chapman
  21. 21. Adspend by country forecast at current prices, 2011 Media forecasts Notes: Local currency, current prices Source: Warc Extracted from International Ad Forecast 2011/12 (July) . To click through to article, use Slide Show view year-on-year % change
  22. 22. Adspend Forecast by Main Media: 2010 vs 2009 Media forecasts Extracted from Adstats: Adspend in 2010 . To click through to article, use Slide Show view Source: Warc Year-on-year change (%), top 5 markets
  23. 23. Consensus Forecast: Internet Advertising Expenditure Media forecasts Extracted from Consensus Adspend Forecast – May 2010 . To click through to article, use Slide Show view Source: Warc Current prices, y/y % change 2010 2011 Australia 13.3 12.0 Brazil 23.4 20.2 Canada 18.3 17.7 China 28.6 39.9 France 9.7 9.9 Germany 9.3 10.0 India 28.6 18.1 Italy 12.7 15.9 Japan 6.5 8.1 Russia 22.1 23.4 Spain 11.5 13.4 UK 6.6 5.6 US 10.2 13.5
  24. 24. Predicted US online ad spend by format, 2015 Media forecasts Source: eMarketer, April 2011 Extracted from Adstats: Online video . To click through to article, use Slide Show view % share
  25. 25. Search Engines Grehan & Pettijohn (2009) <ul><li>Content </li></ul><ul><li>Quality Backlinks </li></ul><ul><li>Page Rank </li></ul><ul><li>Domain Age </li></ul><ul><li>Description </li></ul><ul><li>URL / Domain Name </li></ul>2011 Tom Chapman
  26. 26. Paid Search <ul><li>Relevance </li></ul><ul><li>Traffic </li></ul><ul><li>Competition </li></ul><ul><li>Commerciality </li></ul><ul><li>“ The executives of companies conducting business over the Internet have, conveniently, downplayed traditional measures of profitability and economic value. Instead, they have emphasized expansive definitions of revenue, numbers of customers, or, even more suspect, measures that might someday correlate with revenue, such as numbers of unique users (“reach”), numbers of site visitors, or click-through rates.” Porter, M. E. (2001, p.4) </li></ul>2011 Tom Chapman
  27. 27. Word of Mouth Viral Marketing
  28. 28. Definition Cruz & Fill (2008, p. 745) <ul><li>The term “viral marketing” was developed by Juvertson and Draper (1997). It was used to describe the free email service which Hotmail was providing. According to Juvertson (2000, pp. 1-2), they defined the term simply as “network-enhanced word-of-mouth”. </li></ul><ul><li>However, the literature contains a variety of terminology used to explain what viral marketing is. </li></ul><ul><li>Vilpponen et al. (2006, p. 72) “Interactive Marketing” </li></ul><ul><li>Blattberg and Deighton (1991) “Internet word-of-mouth” </li></ul><ul><li>Goldenberg et al., (2001) “ word-of-mouse ” </li></ul><ul><li>Kaikati and Kaikati (2004) “ stealth marketing ” </li></ul><ul><li>De Bruyn and Lilien (2004) “ referral marketing ” </li></ul><ul><li>Thomas (2004) tries to unify these ideas in the term “buzz marketing” </li></ul>2011 Tom Chapman
  29. 29. Performance Measurement Cruz & Fill (2008, p. 753) 2011 Tom Chapman
  30. 30. Performance Measurement Cruz & Fill (2008, p. 754) 2011 Tom Chapman
  31. 31. Social Media Overview
  32. 32. Social Media
  33. 33. Overview <ul><li>“ Social networking sites are the hottest attraction on the Internet, dethroning pornography and highlighting a major change in how people communicate ... ... ” Reuters (2008) </li></ul><ul><li>“ Social Media represent a revolutionary new trend that should be of interest to companies operating in online space or any space, for that matter.” (Kaplan and Haenlein, 2010 pg 59) </li></ul>2011 Tom Chapman
  34. 34. Social Media Defined <ul><li>“ social media is a hybrid element of the promotion mix because in a traditional sense it enables companies to talk to their customers, while in a nontraditional sense it enables customers to talk directly to one another.’’ (Blackshaw & Nazzaro, 2004, p. 2).”(Mangold and Faulds, 2009, 357) </li></ul><ul><li>&quot;an internet-facilitated and consumer-driven movement of networks, content and knowledge built on web-based media tools that enable individuals to connect online. ” (Angel and Sexsmith, 2009) </li></ul><ul><li>“ Social Media is a group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, and that allow the creation and exchange of User Generated Content. ” (Kaplan and Haenlein, 2010 pg 61) </li></ul>2011 Tom Chapman
  35. 35. A Classification of Social Media Kaplan & Haenlein (2010, 62) 2011 Tom Chapman Social Presence / Media Richness Low Medium High Self presentation / Self disclosure High Blogs Social Networking Sites Virtual Social Worlds Low Collaborative projects Content Communities Virtual Game Worlds
  36. 36. Top 20 social networks by registrations, 2010 Media trends Source: Wikipedia (accessed 31, January 2010) Extracted from Looking For Eric: In Search of the Hub Consumers To click through to article, use Slide Show view
  37. 37.
  38. 38. Pro’s & Cons <ul><li>‘ a strategy accelerator’ - connections / relationships both in internal and external </li></ul><ul><li>Information / Data / Marketing Research / Product Development etc not just Marketing Communications </li></ul><ul><li>Security / IP </li></ul><ul><li>Employees </li></ul><ul><li>Image & PR </li></ul><ul><li>Control </li></ul>2011 Tom Chapman
  39. 39. Recommendations Kaplan & Haenlein (2010) <ul><li>Social </li></ul><ul><li>Be Active </li></ul><ul><li>Be Interesting </li></ul><ul><li>Be Humble </li></ul><ul><li>Be Unprofessional ? </li></ul><ul><li>Be Honest </li></ul><ul><li>Media </li></ul><ul><li>Choose carefully </li></ul><ul><li>Pick the application or make your own </li></ul><ul><li>Ensure Activity Alignment </li></ul><ul><li>Media plan integration </li></ul><ul><li>Access for all </li></ul>2011 Tom Chapman
  40. 40. Recommendations Mangold & Faulds (2009) <ul><li>“ propose that social media be considered a hybrid component of the promotional mix and therefore be incorporated as an integral part of the organization’s IMC strategy.” </li></ul><ul><li>“ managers who are accustomed to exerting a high level of control over company-to-consumer messages must learn to talk with their customers, as opposed to talking at them, therefore influencing the discussions taking place in the social media space. ” </li></ul><ul><li>Provide Networking Platforms </li></ul><ul><li>Use blogs and other social media tools to engage customers </li></ul><ul><li>Use both traditional and Internet based promotional tools to engage customers </li></ul><ul><li>Provide information </li></ul><ul><li>Be outrageous </li></ul><ul><li>Provide exclusivity Design products with talking points and consumers’ desired self images in mind </li></ul><ul><li>Support causes that are important to consumers </li></ul><ul><li>Utilize the power of stories </li></ul>2011 Tom Chapman
  41. 41. Food for thought - Marketing <ul><li>Back to basics </li></ul><ul><li>An exchange process </li></ul><ul><li>Objectives </li></ul><ul><li>Focus </li></ul><ul><li>Strategy / Direction </li></ul><ul><li>This is not a cheap / short term commitment </li></ul><ul><li>Don’t ‘Give it to the student’ </li></ul><ul><li>ROI </li></ul><ul><li>Internal Customers </li></ul>2011 Tom Chapman
  42. 42. Food for thought – Technological & Behavioural <ul><li>Integration of Social Media Technologies into corporate and other systems </li></ul><ul><li>Increased use of Social Media Release (SMR) - Steyn et al , (2009) </li></ul><ul><li>Mobile Devices and anytime / location access </li></ul><ul><li>Integration of social media content and more formal / traditional web content </li></ul><ul><li>Use of Social Media demographics (LIKE) in search results and rankings </li></ul>2011 Tom Chapman
  43. 43. Food for thought <ul><li>It’s not your party </li></ul><ul><li>Hold your own party and invite your advocates </li></ul>2011 Tom Chapman
  44. 44. References <ul><li>Angel, R., & Sexsmith, J. (2009). SOCIAL NETWORKING: THE VIEW FROM THE C-SUITE. Ivey Business Journal, 73(4), 5. </li></ul><ul><li>Arnott, D. C., & Bridgewater, S. (2002). Internet, interaction and implications for marketing. Marketing Intelligence & Planning, 20(2), 86-95. </li></ul><ul><li>Clark, L., & Wright, P. (2007). Off Their Trolley—Understanding Online Grocery Shopping Behaviour. Home Informatics and Telematics: ICT for The Next Billion, 157-170. </li></ul><ul><li>Cruz, D., & Fill, C. (2008). Evaluating viral marketing: isolating the key criteria. Marketing Intelligence & Planning, 26(7), 743-758. </li></ul><ul><li>Grehan, M., & Pettijohn, J. B. (2009). Search marketing yesterday, today, and tomorrow: Promoting the conversation. Journal of Direct, Data and Digital Marketing Practice, 11(2), 100-113. </li></ul><ul><li>Kaplan, A. M., & Haenlein, M. (2010). Users of the world, unite! The challenges and opportunities of Social Media. Business Horizons, 53(1), 59-68. </li></ul>2011 Tom Chapman
  45. 45. References <ul><li>Mangold, W. G., & Faulds, D. J. (2009). Social media: The new hybrid element of the promotion mix. Business Horizons, 52(4), 357-365. </li></ul><ul><li>Pelkonen, T. (2003). Value Creation Patterns and Current Trends in Digital Media Service Creation: A Case Study of the Finnish Digital Media Industry. Proceedings from Europrix Scholars Conference paper, November. </li></ul><ul><li>Porter, M. E. (2001). Strategy and the Internet. Harvard Business Review, 79(3), 62-79. </li></ul><ul><li>Reuters (2008) Porn passed over as Web users become social: author. idUSSP31943720080916 </li></ul><ul><li>Steyn, P., Salehi-Sangari, E., Pitt, L., Parent, M., & P. (2009). The Social Media Release as a public relations tool: Intentions to use among B2B bloggers. Public Relations. </li></ul><ul><li>Truong, Y., & Simmons, G. (2010). Perceived intrusiveness in digital advertising: strategic marketing implications. Journal of Strategic Marketing, 18(3), 239-256. </li></ul>2011 Tom Chapman