Digital + Marketing 101

Slide 1: DIGITAL+ MARKETING : 101 An introduction to the Digital Marketing for traditional marketers and agencies Presented By: Joanna Pena-Bickley VP, Interactive Group Creative Director DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O

Slide 2: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 2

Slide 3: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 3

Slide 4: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 4

Slide 5: THE COUNTER-CULTURE IS THE MAINSTREAM In which (semi-)amateurs start to “play for real” Blogs vs. Mainstream News Media : Early days, yet traffic is growing NEWS MEDIA BBC Newlsline Ticker 19,550 /million CNN 18,600 New York Times 8,740 Drudge Report 4,210 Washington Post 3,755 Xu Jing Lei Reuters Online 3,680 56,750/million Guardian Unlimited 2,985 1,000-4,000 Al Jazeera 2,925 comments per Wall Street Journal 1,995 article Le Monde 990 The Huffington Post 959 The Economist 740 Daily Kos (State of theNation) 722 Every Citizen is a Reporter Crooks&Liars (John Amato) 525 Alain Thys - FutureLab DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 5

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

Slide 7: THE SHIFT - THE MEDIUM CATCH UP ONLINE MEDIA PLAY CATCH UP WITH TRADITIONAL OUTLETS July 2006 (cc) Lynette Webb, 2006 Alain Thys - FutureLab DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 7

Slide 8: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 8

Slide 9: 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) DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 9

Slide 10: STOP THE MONOLOG - START THE DIALOG Art by: Andrew Davies DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 10

Slide 11: WHAT CREATES CONSUMER CONVERSATIONS? 76% of consumers don’t believe that companies tell the truth in advertisements Yankelowich Alain Thys - FutureLab DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 11

Slide 12: CONVERSATIONS START WITH PEOPLE THERE IS STILL ONE TRUSTED MEDIUM LEFT IN THE WORLD MY FRIENDS – THEIR FRIENDS – AND ALL THOSE WE COLLECTIVELY RESPECT Alain Thys - FutureLab DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 12

Slide 13: PEOPLE TRUST PEOPLE - NOT MARKETERS Edelman Trust Barometer 2006 When forming an opinion of a % company, how credible would Academic 62 the Doctor or similar 62 information be from … Person like yourself/peer 61 Financial Analyst 58 NGO Rep 58 A person like yourself or a peer Accountant 53 61% 55% Lawyer 36 51% Regular employee 33 33% CEO 29 Union 19 Entertainer 17 PR person 16 2003 2004 2005 2006 Blogger 15 Alain Thys - FutureLab DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 13

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

Slide 15: PEOPLE TRUST PEOPLE - THE IGNORED REALITY This is not a “new hype” just an ignored reality Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger 1955 than a personal sales pitch and 2x as effective as radio advertising 1967 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 2001 Diffusion studies found that WOM is 10x more effective than media advertising 2006 61% trust other people like themselves (as media) - Edelman Trust Barometer, 2006 Alain Thys - FutureLab DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 15

Slide 16: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 16

Slide 17: 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. DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 17

Slide 18: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 18

Slide 19: 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 .asp, .php. jsp confirmations pages not seen by the consumer – Object Oriented Programming Business Logic is functional • XML,PHP, ASP, JSP • The Data Layer – Databases and stored procedures Universal • MS SQL Server, My SQL, Oracle symbol for database DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 19

Slide 20: THE PRESENTATION LAYER Programming = Design = DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 20

Slide 21: THE BUSINESS LOGIC LAYER • A Business Objective Gets Turned in to an application • A Business Objective Gets Turned in to an application DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 21

Slide 22: THE DATA LAYER • Capturing Consumer Information & reporting DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 22

Slide 23: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 23

Slide 24: 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. DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 24

Slide 25: 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 DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 25

Slide 26: THE CHANGING LANDSCAPE DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 26

Slide 27: 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. DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 27

Slide 28: 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. DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O Page 28

Slide 29: DIGITAL+ MARKETING : 101 An introduction to the Digital Marketing for traditional marketers and agencies CONTINUE THE CONVERSATION AT HTTP://JOANNAPENABICKLEY.TYPEPAD.COM Presented By: Joanna Pena-Bickley VP, Interactive Group Creative Director DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.C M O