best examples of marketingand engagement using digital technologyjanuary 2013lorna von Seggern john tedstromMarketing Research Manager Managing Director, Insight & Strategy
The role of technology in marketing With the explosion of new media channels and technologies, marketers are scrambling to figure out what are the new principles and best practices in engaging today’s consumers. Technology has changed how consumers interact with brands, so we created this e-book as a frame of reference to help companies navigate this new multichannel, digital world. Through extensive secondary research and our own experiences, we’ve identified 5 trends on how technology is being applied to marketing in order to build relationships with the multitasking, multichannel consumer: 11/ 2/ 3/ Social Merchandising Increasing Engagement Content in Context and Social Loyalty 4/ Lifestyle Integration 5/ Extreme Personalization
Why the marketing landscape is changing: Technology has forever changed how consumers interact with brandsDigital disruption is all around us. In most developed countries, Internet access is near ubiquitous. As of2012, there are an estimated 3.2 billion mobile phone owners worldwide. Mobile web use is expected topass desktop usage in 2014. 29% of U.S. adults now own a tablet or e-reader. A recent survey of U.S. adultsmartphone owners by Harris Interactive found that nearly 3/4 of smartphone owners don’t go an hour withoutchecking their phone. Consumers are increasingly likely to research a product in-store on their smartphone beforebuying it online. The influence of social media, social merchandising and social commerce is exploding. Thereare now 850 million users on Facebook. And that’s just a scratch on the surface of how digital technology ischanging the way consumers interact with brands. 2Even industries without any digital products have been forever changed. And companies like GE, Cisco andIBM are betting the Internet will bring digital intelligence to the physical world of industry like never before.Consumers and business decision makers now have a huge range of tools that give them unprecedentedaccess to information, pricing, comparison data and more. Increased access, in turn, has led consumers todemand even more transparency, simplicity, immediate response and relevant personalized content.Marketers have responded by shifting from one-way company-, brand- or product-focused marketing aloneto finding more ways to be customer-centric, personal, relevant, local and timely. Now, companies bring theirproducts to life in context and create experiences that matter for consumers, so they can get what’s in it forthem, rather than just hear about it. It wasn’t a nice thing to have to go digital, we had to do it to survive. – Angela Ahrendts, CEO of Burberry
Brands are using technology in many waysto create experiences, drive engagementand build stronger relationships withtheir target consumers. 3 1/ 2/ 3/ Social Merchandising Increasing Engagement Content in Context and Social Loyalty pp. 5-11 pp. 12-15 pp. 16-21 4/ Lifestyle Integration pp. 22-25 5/ Extreme Personalization pp. 26-29
Our purpose at P&G is to touch and improve lives; everything we dois in that context. With digital technology, it’s now possible to havea one-on-one relationship with every consumer in the world. The 4more intimate the relationship the more indispensable it becomes. We ,want to be the company that creates those indispensable relationshipswith our brands, and digital technology enables this. – Robert McDonald, president and CEO of P&G
1/ Increasing Engagement Brands are using a combination of location and technology to break through the clutter and create new levels of engagement with their most 5 important customers. pp. 6-7 pp. 6, 8 pp. 6, 9 pp. 6, 9 pp. 6, 10 pp. 6, 11
The right message at the right time. Technology enables companies to engage their targetaudience anywhere and anytime, providing perfectly timed and clever breakthrough messaging to thetarget audience.Original and User-Generated Content. Today, more brands are using digital technology toact like publishers and creators. Compelling digital content about unique experiences – pop culture, art,people stories – is driving engagement and conversation, not product and company information. Digitalcontent helps humanize a brand, communicating who they are and what they are about.Storytelling. Consumers across all age groups crave stories that they can share with friends and 6family. Many successful marketers in the digital age are focusing on the people that interact with the brand,not the brand itself, by creating branded stories that have the added advantage of making people lookgood for sharing it.SOCIAL SHARING. People use social networks to hear another person’s experience (70%) and to learnabout new products and services (60%). Today, consumers are generating and tapping into the opinionsof an exponentially larger universe. For marketers, the race is on to be among the brands being shared.Gamification. Brands are using the principles of gaming combined with other data, such as location,to create new levels of engagement.Augmented Reality and Emerging Technology. Augmented reality has proven to createinteractive, engaging experiences with consumers that allows them to more fully experience a brand or product.Expect to see more forms of engaging experience through newer forms of technology.
The right message at the right time Samsung’s galaxy tabIn Heathrow Airport’s first class executive lounges, executives logging ontothe Wi-Fi were greeted with a 25-second commercial about Samsung’sGalaxy Tab just weeks before the holidays. Samsung sold 600,000 units in 7one month across 30 markets due to putting their message in front of theirtarget audience at the right time. Lexus To promote its CT 200 Hybrid model on Earth Day in April, Lexus created a 3D projection onto the Roosevelt Hotel. The image featured the CT 200 driving around the hotel’s walls. Combined with lighting and music, the outdoor initiative went viral on YouTube, generating over 1 million comments from consumers on Facebook, YouTube and blogs.
Original content RED BULLRed Bull sponsored a live video feed of a skydiver jumping out of a spaceship tocommunicate its brand message and differentiate its energy drink from therest of the industry. The jump from a space capsule at the edge of space byFelix Baumgartner was carried live by television outlets around the world,and more than 8 million people saw the live video on YouTube (the largestaudience ever for a live streaming event of this kind). The daredevil stuntsuccessfully demonstrated the power Red Bull’s energy drink delivers:“Red Bull gives you wings.” 8 User-Generated Content LevI’s curve ID x Liz Stanley Levi’s launched a new jean called Curve ID for women, which allows women to match their measurements to a particular ID in order to get a great fit. Instead of advertising their new Curve ID product through banner ads and TV commercials, Levi’s demonstrated the unique benefits in an authentic manner through video and social influencers. Social influencers received a pair of jeans and a letter asking them to create a video if they liked the jeans. The influencers created amazing videos that drove 95% of traffic to the Levi’s Facebook page. The banner ads drove less than 5%. Levi’s successfully entertained their audiences while educating and informing them at the same time, bypassing the traditional advertising noise to engage them.
storytelling FIATFIAT became Chrysler’s fastest growing brand among young adults after itlaunched a live series of videos titled “Alternative Routes: The FIAT StorytellingSeries.” The videos aligned with the brand’s “Life is Best when Driven” umbrella,featuring live storytelling events from real people. The 8- to 10-minute videoson FIAT’s Facebook page were viewed 440,000 times. In addition, stories werefeatured on CBS.com, which generated an additional 29 million impressions.The videos and content on CBS.com drove nearly 7,000 people to interact onFIAT-USA.com. 9 social sharinG Coca-cola To generate awareness around its “happiness” positioning, Coca-Cola launched the Happy Places photo app and a photo-sharing social network along with a mobile app that encourages people to share their happy moments. Users can view and comment on other’s pictures and follow hashtags like #music, #joy and #girlfriends to keep up to date with new uploads that fit with these “moments.” Coke’s photo initiative successfully attracted and engaged new audiences while associating its brand to its core positioning.
Gamification DENNY’SDenny’s restaurant reinvigorated their brand with the launch of its “50 StateChallenge” mobile app and promotion. In this gamified app, guests can locatenearest restaurants, see exclusive menu items and check in to receive “statesouvenir challenge badges” along with different prizes. Customers can also 10recruit friends through the app to check in with their friends as a “team check in”for a bigger prize. The ultimate prize, for checking in to a Denny’s in all 50 states,is free Grand Slams for life. The check-in capability is a way to drive traffic directly to the restaurant. Thanks to apps like Foursquare, people are now familiar with that kind of check-in behavior. It gets guests into our restaurant, which is the ultimate goal for us. – John Dillon, vice president of brand marketing and product development, Denny’s
Augmented Reality MaybellineMaybelline incorporated augmented reality into its New York Color ShowNail Lacquer print ad campaign to allow readers to virtually try on 40 different 11colors of nail polish by taking a picture of their hand. Volvo Volvo created an augmented reality experience to promote its new S60 model. Users could drive a virtual car by scanning a YouTube video. Fans drove a car around a track by tilting their smartphone to the left or right. Volvo said the results were “outstanding,” with a 9.6% interaction rate, 192,319 clicks on the masthead ad and a traffic increase of 293% to volvocars.com.
2/ Content in Context Many brands are using technology to engage customers in new ways by delivering relevant content in the right context 12 to connect with consumers where they are.
American expressAmerican Express provided content with enhanced andexclusive benefits by allowing cardholders to shop for productsduring the e-commerce-enabled television show New Girl. IKEA IKEA moved away from featuring static pictures of products to lifestyle imagery by grouping products together in relevant settings. IKEA’s new holiday interactive catalog, titled “Celebrate Brilliantly,” features interactive 13 photos of IKEA’s products and fun ideas for the home. Users can flip the switch on the bottom of the page to see what an everyday room would look like decorated for the holidays and can watch videos from the catalog pages, recommend to Facebook and pin items on Pinterest, all in one click. The Home depotThe Home Depot launched the Style Guide iPad app to drive project consideration andinspiration among home enthusiasts. The app can service as direction points for someonewhen taking on a project.How-to articles feature large images that can be clicked on for additional information.Other interactive features include the ability to switch an image from daylight to night tosee how lighting affects a specific room and swipe functionality.Everything featured in the articles in the app is commerce-enabled, linking to a customHome Depot website where all products are available for purchase. The app is currentlythe top downloaded app in its category.
Audiences are increasingly engaging in second screen viewing.The mobile device allows us to integrate marketing messaging 14related to specific TV content in a way that would otherwisenot be possible. – Lou Paskalis, vice president of global media, content development and mobile marketing at American Express, New York
Toys “R” USToys “R” Us launched a series of online videos that star kids as “news anchors” of a toynews network aimed at informing parents on the hottest toys for the holiday season.To continue the discussion, Toys “R” Us started the #HotToys hashtag on Twitter for parentsto talk amongst themselves as well as with brand representatives. Digital content, includingsome of the TV spots, lives on Facebook and YouTube. Toys “R” Us has 3.1 million likes and35.4 million video views on Facebook. WAze Waze is a free community-based traffic and navigation app now with over 30MM members that puts the user in context with valuable trip and navigation content. 15 Members share real-time traffic, accident and road information and provide edits and even corrections to maps. BMWBMW’s “A Window into the Near Future” used out-of-home digital signage, digital projection andmotion detection technology to transform passing cars into future all-electric BMW i3 and plug-inhybrid BMW i8 concept vehicles.Across from Bryant Park in New York City, consumers drove by a large window that reflected aBMW concept car instead of their own and calculated how much money would be saved and howmany tons of CO2 emissions could be reduced annually if each transformed car was all-electric.BMW used the window to demonstrate their vision of the future.BMW’s out-of-home advertisement built excitement for the brand, going viral on the Internet, withpositive comments on blogs and websites along with many shared links to the branded viral videoon YouTube.
3/ Social Merchandising and Social Loyalty Social media continues to evolve through social marketing, social 16 merchandising and social commerce. Social loyalty is emerging as an opportunity to leverage all three. pp. 17-18 pp. 19-20 pp. 21
Social Merchandising Social merchandising is driving companies to showcase their products in a visual, meaningful way that easily transfers to Pinterest, Instagram and others. The new e-commerce reflects a more personalized experience, focusing on consumers’ unique passions and interests. And social commerce encourages shoppers to discover new products, not just buy them. Marc jacobsMarc Jacobs revamped its website with more improved visuals, mobile commerce 17features and social sharing options to boost sales. The website now has largerproduct images, social integration, mobile optimization and PayPal integration. Topersonalize the experience, they added the “MyMJ account,” which syncs with theuser’s Facebook page and includes order history, customized collection picks,news and events from Marc Jacobs and an integrated Marc Jacobs Twitter feed. bentley motors Bentley Motors creates a two-way dialogue with their customers on Pinterest and other social media channels. Showcasing merchandise in a relevant manner on Pinterest allows customers to discover, share, comment and purchase items quickly and easily.
Social merchandising is driving product visibility basedon “likes.” Companies such as thefind and Glimpse allowusers to discover products based on the number of likesthey receive. There are 170MM product pages that havelike buttons but only 6.2MM have 1+ likes. 18
Social Loyalty Brands and retailers are testing the waters by adding a social layer to established programs while building upon proven principles of loyalty and customer relationship management. Social loyalty programs provide brands with an unprecedented amount of customer data and new levels of engagement. ExPRESS Express Next loyalty program drove deeper customer engagement and sales through social media engagement. Those who are engaged with the brand tend to buy more and have a longer relationship with the company. Customers earn points for opting-in to receive SMS text alerts from the retailer, re-tweeting an Express tweet, following Express on Twitter and for reviewing an item on Express.com. 19 Caesars entertainment’s total rewards programCaesars Entertainment’s Total Rewards program acquired new members and drove deepercustomer engagement by allowing members to earn additional rewards points by sharingcontent and check-in activities through Facebook, Twitter, YouTube and Foursquare.To illustrate the value of the rewards program, Caesars launched the “Escape to Total Rewards”sweepstakes, where members had chances to win 90,000 prizes by playing an online gameat TotalRewards.com/Escape. To play, members must obtain special key codes from Caesar’slocations on Foursquare, Facebook and Twitter. When the player enters the key code, they canplay one instant-win game.The program enhancements have resonated with travelers and other entertainment seekers,as Caesars Entertainment witnessed a 20% increase in Total Rewards members, more than23 million “Escape to Total Rewards” online game plays, 101% increase in @Total_Rewardson Twitter and 93% increase in Total Rewards Facebook fans.
There is a lot of marketing power behind a passionate customerwho takes to social media to tell all of her friends about the 20big reward she just earned and the sexy dress she’s going topurchase with those rewards. Next thing you know, all of herfriends want to sign up and earn rewards too. – Jim Wright, Express senior vice president of marketing
Social and mobile apps FEdEx FedEx launched the “Ship to Friends” app that allows Facebook users to prepare and pay for a FedEx shipment without ever leaving Facebook. In addition, the app allows users to post directly to their friend’s Facebook timeline, alerting them that they are sending them a package. 21 TGI Friday’sTGI Friday’s successfully re-energized the brand by developing a mobile app thatfocuses on convenience and makes the customers’ interactions with the restauranta lot easier. With the mobile app, consumers can sign up for the restaurant’s loyaltyprogram, check their rewards balance, place a restaurant order, keep track of theirtab and pay their bill, and share experiences with others through social media. nordstrom Nordstrom created a personalized mobile shopping experience with its new shoppable iPad app. The goal of the app is to give consumers a “simple, fast and intuitive way to browse and buy merchandise on the iPad,” according to Nord- strom. The three main functions of the app are the virtual dressing room, person- alized home page and social sharing. Users can search for products, shop and try products on virtually.
4/ Lifestyle Integration Brands are using technology to bring their brand promise to life by functionally integrating it into customers’ daily lives. They 22 have found that traditional advertising is not enough and they must “be” the brand that they promise. In the digital world today, consumers increasingly want brands to demonstrate their value through action, not just words. And as a result, technology is changing how people interact with the brands, content and how they get things done in their daily lives.
NikeIn what may be the best example of functional lifestyle integration, Nike launchedthe Nike+ FuelBand, a device that athletes wear to track all daily activity and helpthem reach their goals. As a result, Nike has transformed the category and hasbecome the brand it promises – for the athlete in all of us. Users can set targetsand share their measurements with others. Once a goal is reached, a motivationalcharacter, “Fuelie,” appears and applauds the user for their efforts. Now with 7million users, Nike plans to extend the idea and build Nike+ Basketball (specificfor basketball players) and create additional training apps. 23 Vail Resorts To add value and create strong brand advocates, Vail Resorts launched the Epic Mix digital ecosystem, which incorporates gamification elements and RFID codes. Through a website and mobile app, season pass holders at Vail’s six resorts track vertical feet skied, earn pins for activity, compete with friends on a leaderboard, post photos and share activity through social channels. In 2012, they added a new mobile app, Epic Racing, which allows skiers to compare their racing times with American Ski Racer Lindsey Vonn and win digital medals based on their achievements. The app allows users to share their results with friends on Facebook and Twitter. For the passionate skier, Epic Mix has become the connective tissue and a huge differentiator for Vail Resorts.
The role of the brand, and of advertising, has changed frombeing one of inspiration to one of inspiration and enablement. 24The consumer feels entitled to attention – saying ‘J ust Do It’isn’t enough; they want the know-how. – Stefan Olander, vice president of digital sport, Nike
GAPGap wanted to tie their brand to something tangible that establishes an emotionalconnection with their audiences during the holiday gift-giving season. Gap allowedcustomers to send their own Facebook photos as real, printed postcards to theirFacebook friends free of charge. And wouldn’t it be great if some of those postcardsshowed customers enjoying Gap clothing and accessories? Through the end ofDecember, Gap gave away 1 million free postcards as part of their sentimentalholiday initiative. 25 ASICS America ASICS America, a partner of the 2012 Honda LA Marathon, expanded its “Support Your Marathoner” program to the West Coast. It allows friends and family to send pictures, texts and video messages of support to the marathon runner of their choice on race day. Motivational messages are delivered directly to an individual runner when they run past one of two giant video screens placed in various locations on the race course. Social media delivered additional moments of inspiration to runners. The program links the website (www.supportyourmarathoner.com) to the runner’s personal Facebook page, allowing them to share requests for support with their entire online network. Every time a message of support is uploaded, the runner’s entire Facebook community is alerted and encouraged to upload more messages. The Support Your Marathoner website also gives runners their own personalized support gallery of messages, pictures and videos for after the race.
5/ Extreme Personalization Some brands are putting technology to work to ensure that each marketing message targets the right audience and each experience is precisely relevant. 26 Facial recognition technology is one example at the extreme end of the personalization spectrum. Understandably controversial, it helps brands hyper-target their messages based on demographics. It has a cool factor but any conversation about it quickly goes to the potential for abuse. Nonetheless, it is a new technology to keep an eye on.
Forrester predicts that by 2014 consumers will receivean average of 9,000 email marketing messages annually.Companies are looking to extreme personalization tobreak through the clutter. Sony Ericsson Sony Ericsson engaged customers with personalized messages based on their physical location to demonstrate the photo capabilities of their new SE K550i phone. The campaign was built around a competition to win a world trip for the entrant and four of their friends to participate in extreme sports, including Bungee jumping out of a helicopter over the fjords of Norway and sand boarding in the deserts of Dubai. Users sign up for the four-stage challenge and continue over four 27 weeks. Each week’s entrants needed to upload five photos of their preparations. Using a sophisticated re-targeting process, they created personally relevant ads for each entrant based on their status within the competition. The ads remembered the stage the individuals were in and user data was combined from tags on the various stages of the microsite with multiple possible ad interactions. Users were re-targeted across the MSN network using personalized content such as the user’s submitted photo in the ad. at&t AT&T said its program, called AT&T Alerts, will use “geo-location technology” to offer customers “discounts, rewards and offers via text message when they are near participating retailers and brands,” including Gap, Staples and Zales.
BEIng tested by some retailers and consumer packaged goods manufacturers, facialrecognition allows billboards, vending machines and digital kiosks to detect a person’sattributes, such as age, gender and race, and deliver customized content as a result. Adidas Adidas is working with Intel to develop digital walls with facial recognition for a limited number of stores in the U.S. and Britain. 28 Kraft Kraft is testing face-scanning kiosks in select supermarkets. When a shopper stands in front of the kiosk, a camera equipped with Anonymous Video Analytics software zooms in on his or her face to determine the shopper’s age and gender. The kiosk then suggests Kraft products it thinks the shopper will enjoy, from kid-friendly Oscar Mayer hot dogs to Tombstone Pizza.
Future TrendsIn this “what’s in it for me” and “what’s around me” hyper-connected world, brands will continue to leveragetechnology to understand customers’ needs and connect with them by putting their products and services incontext, always driving toward more meaningful experiences, deeper engagement and one-to-one relationships.Although we can’t guarantee what the future will bring, we do know that brands will focus on these emerging trends.When looking at how to leverage technology to achieve your own marketing objectives, whether its buildingcustomer loyalty, generating awareness and/or driving deeper customer engagement, first look at your target 29audience and their needs, media and digital habits and how your products and services fit into their lifestyle. It’sall about engaging them seamlessly in their personal digital world, not disruption by pushing messages at them.By 2014, nearly half of the U.S. smartphone population will be mobile social network users, shopping through socialmedia. E-commerce will ultimately stand for “everywhere commerce.” The purchase funnel is no longer linear,and marketers can influence a purchase decision at any moment. Therefore, digital will have a deeper influence inthe purchase process as companies continue to discover which technologies are effective in influencing specificbehaviors.As consumers’ attention is divided across multiple screens, integrating imagery, video, sound and multisensoryexperiences will become even more important as brands look to break through the clutter. However, relevancy,context and personalization will remain the key challenge over the next few years. A major priority for marketerswill be collecting and making sense of data from multiple channels and turning that data into actionable insight inorder to communicate with their audience in a more personalized, relevant manner.
About hawkeyeWe create extraordinary message in the right context. We help you figure out who your consumers are, what they value, where they look for it and howexperiences that matter. they prefer it to be offered. Using integrated digital capabilities and creative solutions that drive results, we inspire your customers to act by clicking, tapping, emailing, texting, calling, participating inhawkeye is an Integrated.Digital.Agency. We create extraordinary an event, joining the conversation, making a purchase through dig-experiences for clients and their customers using insight, analytics ital channels or going to a brick-and-mortar store. And, we measureand innovation to develop ideas that drive brand affinity and business everything to give you the results you need.success. Through social, mobile, digital, event and direct channels, For additional insights or help with your integrated digitalwe help clients inspire action to accelerate brand growth. strategy and to find new ways to engage your audiences, emailWe don’t talk at people. We engage them with breakthrough us or give us a call. 30experiences in the right channel at the right time with the right John Tedstrom Wes Wright firstname.lastname@example.org email@example.com/hawkeyeagency Managing Director, Insight & Strategy Managing Director, Interactivewww.twitter.com/hawkeyeww 970-376-0269 214-659-5611www.youtube.com/user/hawkeyeww