DIGITAL MARKETING : 101 Presented By: Joanna Pena-Bickley VP, Interactive Group Creative Director An introduction to the Digital Marketing for traditional marketers and agencies +

MARKETING TO CONSUMERS Consumers are who we work, create and think for… Consumers are fragmented, into niche audiences with passions and lives As creative marketers we should looking to play in the consumers life As creators we want our stories to influence human behavior Consumers want a say in how we create Consumers want us to tell a story that makes their conversations more interesting Today's Consumer truths Make it something I really care about Make it fun, credible and memorable Make it something I can easily tell others Be true, so I don’t like to look like a liar

Consumers are who we work, create and think for…

Consumers are fragmented, into niche audiences with passions and lives

As creative marketers we should looking to play in the consumers life

As creators we want our stories to influence human behavior

Consumers want a say in how we create

Consumers want us to tell a story that makes their conversations more interesting

Today's Consumer truths

Make it something I really care about

Make it fun, credible and memorable

Make it something I can easily tell others

Be true, so I don’t like to look like a liar

OUR CHANGING LANDSCAPE Our industry is changing because the consumers we market to and create for have changed. For the first time in a long time we are being forced to listen to consumers and what they are thinking, feeling and now commenting about the brands we represent. The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2

Our industry is changing because the consumers we market to and create for have changed.

For the first time in a long time we are being forced to listen to consumers and what they are thinking, feeling and now commenting about the brands we represent.

The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2

TECHNOLOGY AND ITS ROLE IN OUR WORLD First marketers and media mavens controlled how we consumed media. “ Your contract with the network when you get the show is that you’re going to watch the spots … Any time you skip a commercial …you’re actually stealing the programming” - Jamie Kellner, CEO of Turner Broadcasting, April 2002 Then…. The Power Shifted Anytime - Any Place - Any Way Alain Thys - FutureLab

First marketers and media mavens controlled how we consumed media.

“ Your contract with the network when you get the show is that you’re going to watch the spots … Any time you skip a commercial …you’re actually stealing the programming” - Jamie Kellner, CEO of Turner Broadcasting, April 2002

Then…. The Power Shifted

Anytime - Any Place - Any Way

THE COUNTER-CULTURE IS THE MAINSTREAM NEWS MEDIA BBC Newlsline Ticker 19,550 /million CNN 18,600 New York Times 8,740 Drudge Report 4,210 Washington Post 3,755 Reuters Online 3,680 Guardian Unlimited 2,985 Al Jazeera 2,925 Wall Street Journal 1,995 Le Monde 990 The Huffington Post 959 The Economist 740 Daily Kos (State of theNation) 722 Crooks&Liars (John Amato) 525 Xu Jing Lei 56,750/million 1,000-4,000 comments per article Blogs vs. Mainstream News Media : Early days, yet traffic is growing Every Citizen is a Reporter In which (semi-)amateurs start to “play for real” Alain Thys - FutureLab

MAINSTREAM CULTURE SHIFTS MEDIA Nielsen Rating – Nov 6- Nov 12 YouTube TOP 3 (20 nov 2006) In which (semi-)amateurs start to “play for real” Alain Thys - FutureLab 20.8 CBS CSI: Crime Scene Investigation 3. 22.0 ABC Dancing With the Stars 2. 22.3 million ABC Desperate Housewives 1. 12.7 Quick Change Artists 17.3 Pokemon Theme Music 35.7 MM Evolution of Dance

THE SHIFT - THE MEDIUM CATCH UP ONLINE MEDIA PLAY CATCH UP WITH TRADITIONAL OUTLETS July 2006 (cc) Lynette Webb, 2006 Alain Thys - FutureLab

THE BIGGEST DIGITAL MEDIA PLAYER - THE LONG TAIL THE BIGGEST PLAYER IS The long, long, long, long, long tail 1-200,000 1,000-200,000 Alain Thys - FutureLab

DON’T CREATE DIGITAL TACTICS - CREATE CONVERSATIONS Often marketers think that creating a slick website, a video on YouTube or an email is the answer to their marketing needs and can move product off shelves. It is not. The paradigm shift has happened. The noise we have made over the years has frustrated consumers and they have tuned us and our advertising out. Now we are mono-loging like the nut in the corner of the room talking to ourselves. We are in the Conversation Economy. (David Armano)

Often marketers think that creating a slick website, a video on YouTube or an email is the answer to their marketing needs and can move product off shelves.

It is not.

The paradigm shift has happened.

The noise we have made over the years has frustrated consumers and they have tuned us and our advertising out.

Now we are mono-loging like the nut in the corner of the room talking to ourselves.

We are in the Conversation Economy. (David Armano)

STOP THE MONOLOG - START THE DIALOG Art by: Andrew Davies

WHAT CREATES CONSUMER CONVERSATIONS? of consumers don’t believe that companies tell the truth in advertisements 76% Yankelowich Alain Thys - FutureLab

CONVERSATIONS START WITH PEOPLE THERE IS STILL ONE TRUSTED MEDIUM LEFT IN THE WORLD Alain Thys - FutureLab MY FRIENDS – THEIR FRIENDS – AND ALL THOSE WE COLLECTIVELY RESPECT

PEOPLE TRUST PEOPLE - NOT MARKETERS A person like yourself or a peer Edelman Trust Barometer 2006 When forming an opinion of a company, how credible would the information be from … Alain Thys - FutureLab 15 Blogger 16 PR person 17 Entertainer 19 Union 29 CEO 33 Regular employee 36 Lawyer 53 Accountant 58 NGO Rep 58 Financial Analyst 61 Person like yourself/peer 62 Doctor or similar 62 Academic %

PEOPLE TRUST PEOPLE People Trust Humans 3 Radio 4 TV 4 Magazines 14 Other 14 Retailer information 16 Product/Company Information 21 Internet 25 Newspaper Coupons 33 Word-of-mouth from family & friends 36 In-store demonstration 49 In-store Sales Associate % Source Source: CMO Council’s Retail Fluency Report, 2005 Most influential information sources in purchasing electronic goods? (TOP 3) Alain Thys - FutureLab

PEOPLE TRUST PEOPLE - THE IGNORED REALITY This is not a “new hype” just an ignored reality 61% trust other people like themselves (as media) - Edelman Trust Barometer, 2006 2006 Diffusion studies found that WOM is 10x more effective than media advertising 2001 Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising 1955 36% of surveyed consumers reported learning of an innovation through word-of-mouth, while 48% reported being influenced by WOM when making a purchase decision 1967 Alain Thys - FutureLab

DIGITAL MARKETING & COMMUNITY Its is all about the audience. Playing in the digital landscape… Using promotions that give consumers something to talk and that are relevant to our consumers lives We will tell brand stories that encourage Word of Mouth (WOM) and positive brand experiences

Its is all about the audience.

Playing in the digital landscape…

Using promotions that give consumers something to talk and that are relevant to our consumers lives

We will tell brand stories that encourage Word of Mouth (WOM) and positive brand experiences

DOING DIGITAL RIGHT If we are to be a trusted member of a community we must appeal to consumers on an emotional level and give them stories that are worth repeating. The principals of emotional branding create lift and word of mouth qualities by using these 10 human experience building principles in every aspect of the digital marketing. From Consumers To People - Consumers buy, people live. From Product To Experience - Products fulfill needs. Experiences fulfill desires. From Honesty To Trust - Honesty is expected. Trust is engaging and intimate. It needs to be earned. From Quality To Preference - Quality for the right price is a given today. Preference creates the sale. From Notoriety To Aspiration - Being known does not mean that you are also loved! From Identity To Personality - Identity is recognition. Personality is about character and charisma! From Function To Feel - The functionality of a product is about practical or superficial qualities only. Sensorial design is about experiences. From Ubiquity To Presence - Ubiquity is seen. Emotional presence is felt. From Communication To Dialogue - Communication is telling. Dialogue is sharing. From Service To Relationship - Service is selling. Relationship is acknowledgment.

If we are to be a trusted member of a community we must appeal to consumers on an emotional level and give them stories that are worth repeating.

The principals of emotional branding create lift and word of mouth qualities by using these 10 human experience building principles in every aspect of the digital marketing.

From Consumers To People - Consumers buy, people live.

From Product To Experience - Products fulfill needs. Experiences fulfill desires.

From Honesty To Trust - Honesty is expected. Trust is engaging and intimate. It needs to be earned.

From Quality To Preference - Quality for the right price is a given today. Preference creates the sale.

From Notoriety To Aspiration - Being known does not mean that you are also loved!

From Identity To Personality - Identity is recognition. Personality is about character and charisma!

From Function To Feel - The functionality of a product is about practical or superficial qualities only. Sensorial design is about experiences.

From Ubiquity To Presence - Ubiquity is seen. Emotional presence is felt.

From Communication To Dialogue - Communication is telling. Dialogue is sharing.

From Service To Relationship - Service is selling. Relationship is acknowledgment.

DIGITAL BRAND EXPERIENCES On the web, in a game or on the phone we are creating strategic design. We create brand identities and consumer interfaces. Our three rules: User Interface = Brand Design is how it looks & works. Simplicity. The introduction of Interactive and Experience Design The Introduction to Consumer Engagement Mapping Which communicates the story that you are telling consumers Interaction Design (ID) is the professional discipline that defines the behavior of interactive products and how products communicate their functionality to the people who use them. Good interaction design makes products ranging from computer software to clock radios to cars more useful, usable, and desirable. In today's world of ubiquitous technology, practitioners of interaction design play an increasingly important role in the design of successful products. Through well-executed interaction design, businesses can increase their revenues, reduce development costs, and attract, satisfy, and retain loyal customers

On the web, in a game or on the phone we are creating strategic design.

We create brand identities and consumer interfaces.

Our three rules:

User Interface = Brand

Design is how it looks & works.

Simplicity.

The introduction of Interactive and Experience Design

The Introduction to Consumer Engagement Mapping

Which communicates the story that you are telling consumers

Interaction Design (ID) is the professional discipline that defines the behavior of interactive products and how products communicate their functionality to the people who use them.

Good interaction design makes products ranging from computer software to clock radios to cars more useful, usable, and desirable. In today's world of ubiquitous technology, practitioners of interaction design play an increasingly important role in the design of successful products. Through well-executed interaction design, businesses can increase their revenues, reduce development costs, and attract, satisfy, and retain loyal customers

MICROSITES & DIGITAL MEDIA- How do they work? The Presentation Layer This layer controls the look and feel as well as the consumer interacts with the site or media HTML, Flash, Ajax, XSL, JavaScript Vector Design Files The Business Logic This layer controls how the site works, takes in information, pushes out confirmations Object Oriented Programming XML,PHP, ASP, JSP The Data Layer Databases and stored procedures MS SQL Server, My SQL, Oracle Universal symbol for database .asp, .php. jsp pages not seen by the consumer Business Logic is functional

The Presentation Layer

This layer controls the look and feel as well as the consumer interacts with the site or media

HTML, Flash, Ajax, XSL, JavaScript

Vector Design Files

The Business Logic

This layer controls how the site works, takes in information, pushes out confirmations

Object Oriented Programming

XML,PHP, ASP, JSP

The Data Layer

Databases and stored procedures

MS SQL Server, My SQL, Oracle

THE PRESENTATION LAYER Programming = Design =

Programming = Design

THE BUSINESS LOGIC LAYER A Business Objective Gets Turned in to an application A Business Objective Gets Turned in to an application

A Business Objective Gets Turned in to an application

A Business Objective Gets Turned in to an application

THE DATA LAYER Capturing Consumer Information & reporting

Capturing Consumer Information & reporting

MICROSITES, MEDIA & ANALYTICS The Website / Microsite What is a Hit? A server hit is a call to the web server to serve information graphics or applications. A hit is not indicative of a user. What is a Unique User? According to IFABC Global Web Standards, a unique user is "An IP address plus a further identifier. Sites may use User Agent, Cookie and/or Registration ID. What is a registered User? A consumer who has gone to your website and register information in to your database. What is a Referring URL? This term is used when trying to track where a user came from. If I did a search for “the Chicago Bears” My referring URL would be sports.yahoo.com What is a Click Stream? A click stream is the sequence of clicks or pages requested as a visitor explores a Web site. What is Cache? Your Cache is located in the system folders of all Macs and PCs that stores temporary internet files which allows the consumer faster browsing. What is a cookie? A cookies is a small application that is placed in the cache of the consumer computer that helps record their interactions as well as stores personal data. What is a Pixel? This is a 1x1 transparent gif that assists the tracking of consumers coming from a particular banner ad or ad network. What is Tracking Tracking is often a report generated by an analysis of a web servers activity log reports

The Website / Microsite

What is a Hit?

A server hit is a call to the web server to serve information graphics or applications. A hit is not indicative of a user.

What is a Unique User?

According to IFABC Global Web Standards, a unique user is "An IP address plus a further identifier. Sites may use User Agent, Cookie and/or Registration ID.

What is a registered User?

A consumer who has gone to your website and register information in to your database.

What is a Referring URL?

This term is used when trying to track where a user came from. If I did a search for “the Chicago Bears” My referring URL would be sports.yahoo.com

What is a Click Stream?

A click stream is the sequence of clicks or pages requested as a visitor explores a Web site.

What is Cache?

Your Cache is located in the system folders of all Macs and PCs that stores temporary internet files which allows the consumer faster browsing.

What is a cookie?

A cookies is a small application that is placed in the cache of the consumer computer that helps record their interactions as well as stores personal data.

What is a Pixel?

This is a 1x1 transparent gif that assists the tracking of consumers coming from a particular banner ad or ad network.

What is Tracking

Tracking is often a report generated by an analysis of a web servers activity log reports

MICROSITES, MEDIA AND ANALYTICS Online Media What is a Click tag? A click tag is a line of code that ad servers use serve that ad and record the impression and clicks. What is an Ad Server? A central ad server is a computer server that stores advertisements and delivers them to website visitors. Ad servers come in two flavors: local ad servers and third-party or remote ad servers. Local ad servers are typically run by a single publisher and serve ads to that publisher's domains, allowing fine-grained creative, formatting, and content control by that publisher. Remote ad servers can serve ads across domains owned by multiple publishers. They deliver the ads from one central source so that advertisers and publishers can track the distribution of their online advertisements, and have one location for controlling the rotation and distribution of their advertisements across the web. What is Rich Media? is media that uses multiple forms of information content and information processing (e.g. text, audio, graphics, animation, video, interactivity) to inform or entertain the (user) audience. What is Interactive Pre-roll? Interactive video advertising (not an TV AD - a video experience What is remnant inventory? All inventory that is not premium inventory on a publishers website What is CPM, CPC or CPA? Cost Per Mille, Cost Per Click, Cost Per Acquisition (or Actions) What is Real-Time reporting? Real-time reporting is a dashboard feature that most online advertising servers and or ad networks offer advertisers to view the performance of their creative and ad placements. It allows marketers to make iterative changes to their campaigns for high impact.

Online Media

What is a Click tag?

A click tag is a line of code that ad servers use serve that ad and record the impression and clicks.

What is an Ad Server?

A central ad server is a computer server that stores advertisements and delivers them to website visitors. Ad servers come in two flavors: local ad servers and third-party or remote ad servers. Local ad servers are typically run by a single publisher and serve ads to that publisher's domains, allowing fine-grained creative, formatting, and content control by that publisher. Remote ad servers can serve ads across domains owned by multiple publishers. They deliver the ads from one central source so that advertisers and publishers can track the distribution of their online advertisements, and have one location for controlling the rotation and distribution of their advertisements across the web.

What is Rich Media?

is media that uses multiple forms of information content and information processing (e.g. text, audio, graphics, animation, video, interactivity) to inform or entertain the (user) audience.

What is Interactive Pre-roll?

Interactive video advertising (not an TV AD - a video experience

What is remnant inventory?

All inventory that is not premium inventory on a publishers website

What is CPM, CPC or CPA?

Cost Per Mille, Cost Per Click, Cost Per Acquisition (or Actions)

What is Real-Time reporting?

Real-time reporting is a dashboard feature that most online advertising servers and or ad networks offer advertisers to view the performance of their creative and ad placements. It allows marketers to make iterative changes to their campaigns for high impact.

THE DIGITAL MEDIUM Rapid Response Culture Integrated interactive media channels Corporate website Microsite Email Mobile Online Media On Demand Immediate Results User Clicks User Registrations Traffic Optimization All = Engagement measurement factors Optimization of sites and OLA Online Media campaigns Just because we launch it does not mean our job is done - WE’VE ONLY JUST BEGUN The internet is a live and interactive medium where the consumer expects and often demands fresh and innovative content and experiences An iterative medium

Rapid Response Culture

Integrated interactive media channels

Corporate website

Microsite

Email

Mobile

Online Media

On Demand

Immediate Results

User Clicks

User Registrations

Traffic

Optimization

All = Engagement measurement factors

Optimization of sites and OLA Online Media campaigns

Just because we launch it does not mean our job is done - WE’VE ONLY JUST BEGUN

The internet is a live and interactive medium where the consumer expects and often demands fresh and innovative content and experiences

An iterative medium

THE CHANGING LANDSCAPE

EVERYTHING STARTS WITH DESIGN & A GREAT STORY What is User Centered Design? User-centered design (UCD) is a method for designing ease of use into the total user experience with products. Key to this approach is the focus on understanding the users—their environment, their goals and tasks necessary to achieve these goals, their skills, and their abilities. Throughout the development cycle, feedback and input from users is gathered to ensure that the design is based on real data, and not the product development team’s imagination about what users do. This method enables the efficient design of effective interactive systems as UCD expedites and simplifies gathering user feedback and incorporates it into the design process. Specifically, user-centered design means that product teams start by observing and working with its users. Throughout the design process, users judge whether the product meets their requirements by evaluating prototypes. After a period of iterative evaluation and design, the technology is built to fit the mockups. User-centered design is about describing the whole user experience, not just what the users see on the page. It is about relating user goals to application functions, as opposed to taking requirements from someone and turning out web pages. The deliverable for user-centered design is a product that is useful, usable, and desirable to users, not just the final HTML, programming, or implementation. Note that user-centered design is different from and complementary to market research. Market research strives to answer the question, “What product should be built?” Marketing knows what customers are asking for, what drives their behavior at the point of sale, what they will pay for, and what determines their purchasing habits. User Experience, on the other hand, knows what customers actually do, what makes a product simple or difficult, usable or not. Thus, User Experience is better suited to answer the question, “How should the product be designed?” Marketing, User Experience, and Engineering offer a spectrum of perspectives in product development. Creating the right synergy between these functions so that a successful product is built is not an easy task. The section on “Implementing User-Centered Design” on p. 8 discusses not only how to build a User Experience team but also how to incorporate this triad of groups successfully into a product development team.

What is User Centered Design?

User-centered design (UCD) is a method for designing ease of use into the total user experience with products. Key to this approach is the focus on understanding the users—their environment, their goals and tasks necessary to achieve these goals, their skills, and their abilities. Throughout the development cycle, feedback and input from users is gathered to ensure that the design is based on real data, and not the product development team’s imagination about what users do. This method enables the efficient design of effective interactive systems as UCD expedites and simplifies gathering user feedback and incorporates it into the design process.

Specifically, user-centered design means that product teams start by observing and working with its users. Throughout the design process, users judge whether the product meets their requirements by evaluating prototypes. After a period of iterative evaluation and design, the technology is built to fit the mockups.

User-centered design is about describing the whole user experience, not just what the users see on the page. It is about relating user goals to application functions, as opposed to taking requirements from someone and turning out web pages. The deliverable for user-centered design is a product that is useful, usable, and desirable to users, not just the final HTML, programming, or implementation.

Note that user-centered design is different from and complementary to market research. Market research strives to answer the question, “What product should be built?” Marketing knows what customers are asking for, what drives their behavior at the point of sale, what they will pay for, and what determines their purchasing habits. User Experience, on the other hand, knows what customers actually do, what makes a product simple or difficult, usable or not. Thus, User Experience is better suited to answer the question, “How should the product be designed?”

Marketing, User Experience, and Engineering offer a spectrum of perspectives in product development. Creating the right synergy between these functions so that a successful product is built is not an easy task. The section on “Implementing User-Centered Design” on p. 8 discusses not only how to build a User Experience team but also how to incorporate this triad of groups successfully into a product development team.

User Centered Design = EXPERIENCE NOT NOISE The key to creating online experiences is all in the team you hire. They must be great story tellers They must be consumers They must be strategic artists It is important to have a well-balanced team that has the skills needed to implement a user-centered design approach to site, media and mobile, often referred to as User Experience (UE). Rarely are all these skills found in one person, so we will create a team of individuals who specialize in these areas who can contribute uniquely to the final product. YOUR BRAND.

The key to creating online experiences is all in the team you hire.

They must be great story tellers

They must be consumers

They must be strategic artists

It is important to have a well-balanced team that has the skills needed to implement a user-centered design approach to site, media and mobile, often referred to as User Experience (UE).

Rarely are all these skills found in one person, so we will create a team of individuals who specialize in these areas who can contribute uniquely to the final product. YOUR BRAND.

DIGITAL MARKETING : 101 Presented By: Joanna Pena-Bickley VP, Interactive Group Creative Director An introduction to the Digital Marketing for traditional marketers and agencies + CONTINUE THE CONVERSATION AT HTTP://JOANNAPENABICKLEY.TYPEPAD.COM