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The Changing Face of Successful Digital Marketing

by Ingrid Ihasz on Dec 06, 2009

1,616 views

Ervan Pouliquen prezentációja a Microsoft/Adaptive rendezvényén (2009. nov. 26.).

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Ervan Pouliquen prezentációja a Microsoft/Adaptive rendezvényén (2009. nov. 26.).

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The Changing Face of Successful Digital MarketingI will share insights on how Chief Marketing Officers are shifting to online advertising as users are changing their media consumption habits. I will show how the importance of engagement with your customers online is crucial, now more than ever, and demonstrate how this can be achieved in remarkably impactful and effective ways. You have about 1 minute per slideIn the UK the biggest selling record last year was out sold by the biggest selling ring tone!It was also out sold by the biggest selling game!55% of 12-24 year olds believe their online community is as important as their offline community (USC Annenberg Digital Futures Study) (Vs 43% in 2007)A third of European social network users expect more of their future entertainment time to be spent with people they’ll never or rarely meet (Future Foundation European Entertainment Futures Nov08) Even for non-users of social networks that figure is 22%.Our world is changing its time to take advantage of these changes
Its a whole new world out thereWe are currently in very interesting times...on the media front we are seeing how technology – be it blogs, podcasts, mobile Internet, or high bandwidth always-on connections are all driving new consumer behaviour. This impacts media consumption and offers new opportunities to marketers.CLICKObama running an in-game campaign through Microsoft is testament of our times. In its first two weeks of the campaign, more than 55,000 voter registration forms were downloaded through Xbox LIVE and xbox.com. With the Xbox LIVE community downloading more than 350,000 pieces of program-specific content, ranging from candidate gamerpics to videos and Rock the Vote logos. That’s nearly five times the amount of people present at Barack Obama’s acceptance speech during the Democratic Convention in Denver.But we are not only experiencing a changing media landscape we are also faced with a changing economic one – which has led to a re-evaluation of consumer spending behaviours which ultimately has a knock on effect to marketing spend. There is a greater focus on ROI than ever before - at MSA we feel online is very keenly placed to meet these marketers needs...& we’re not the only ones. If you look at the latest agency forecasts (WPP/Group M Dec08) they are predicting that Global ad spend forecasts will fall by 0.2% in 2009, but internet will still experience strong growth[Source: WPP/Group M Advertising Forecast - December 08] 09 ad spend by media: TV ad + 0.5% Newspapers – 3.8%Internet +9.5%The reason why online is still experiencing strong growth is testament not only to the accountability of the medium but also to the increasing value & time consumers are spending with this medium. Supplementary InfoSo there are new opportunities for advertisers to connect with their audience in ways that just weren’t possible in the past. This presentation will take you through those changes and share Microsoft’s vision on how to exploit the new opportunities that the digital environment offers. We’ll see what impact this is having on media consumption, from the new types of media to the how, why, when and where of today’s viewing habits — and how this is forcing advertisers to change their media strategies. Perhaps most importantly, the advertising community must recognise the need to understand and evolve with these new digital media trends — especially as marketers face the enormous challenge of overhauling traditional advertising strategies that are losing effectiveness in the new media environment. Ten years ago we could not have possibly anticipated the rate with which technology has revolutionised the way we access information, communicate, shop, or are entertained and educated — and it’s safe to assume that the pace of change will remain ferocious, or even accelerate. There’ll be no slowdown when it comes to the digital revolution. UK Internet ad spend took an 18.7% market share for H1 2008 – only TV and Press Display now enjoy a greater market share [Source: IAB UK - December 08] In the UK alone video games are a £4.6 bn business – outselling music & videos for the first time in the U.K. [Source: Verdict Research, Nov 08]
Media landscape has explodedUp until thirty-odd years ago, media planners didn’t need a technology partner:A silo-based approach worked just fine, given the relatively simple media mixBut then, in the 1990s, wild-sounding predictions emerged: It was forecast that consumers would no longer care about “platforms” or “delivery media” That the media, entertainment and publishing worlds would have “no walls” That in this wall-free world, we would all get the content we wanted, when we wanted it, and wherever we happened to beAs it has turned out, those wild predictions were spot on:Which has delivered fantastic levels of freedom and access to us all, as consumers But this new matrix of digital possibilities has created a profoundly different world for advertisers and publishers:Change is so rapid that the word “digital” no longer has a fixed meaningChange is so frequent that few have the knowledge to mine the commercial opportunities that are out there
How are we going to reach our customers nowWe all know that audiences are still consuming media – but we now need to become smarter to identify where, when and how. More than ever marketers, media agencies and media owners need to place the consumer at the centre of their thinking. At MSA we invest significantly in both consumer and advertising research to unearth genuine insights that help ourselves and our partners become smarter and plan better. Latest data from the EIAA’s MediaScope research shows European Internet usage at 12 hours per week, just 2.2 hours short of time spent watching television. Amongst the European online youth they now spend 14.8 hrs online Vs 11.4 hrs on TV. Perhaps more strikingly, 35% of Internet users feel lost without their Internet access, only 27% say the same about Television. [Source: EIAA MediaScope Autumn 2008] Technological innovation is driving a change in consumer behaviour – people are still watching TV but on their own terms / within their own timeframe–at times this will be on a smaller screen for added mobility whilst at others it will be on a large screen in the living room with surround sound...a real appointment to view. In the online world – ‘always on/always connected’ - technological innovation has brought increased broadband, storage & improved hardware, enabling better graphics, more engaging applications & the opportunity for marketers to have a dialogue with their consumers anywhere, any time. To deliver the most compelling & effective digital advertising opportunities to our advertising partners we are committed to staying at the forefront of tracking consumer trends and advertising performance. Key Market Stats: More than 350 million adults currently use online gaming (websites) each month [Source: comScore, Sept 09] 48% of people will regularly access mobile Internet by 2013 – 156 million people [Source: Jupiter – European Mobile Media Forecast 2008-2013]
But in this changing world as marketers we still have the same objectiveThis World Without Walls poses some serious challenges for advertisers, agencies and publishers...The media landscape may be in constant flux and evolution but business objectives remain constant:Publishers still seek to reach high value audiences that, in turn, optimise advertising sales Advertisers and their agencies still seek to reach the right person at the right time with the right messageAt a cost that represents a wise investmentDelivering a healthy, measurable return on marketing spendIn other words: Business objectives remain the same Whilst achieving them has become a whole lot tougherMedia buying is evolving, with new products and new ways to engage. What are the sales models of the future and what does this mean for the client-agency relationship? There is a shift from using the smallest amount of media to reach the most amount of people, to using different media to reach different audiences (at different moments, locations, moods etc). The current model of media planning is based around trying to reach a certain proportion of a particular demographic group. The changes in consumer use of media will lead to an aggregative model of evaluation, where planners and marketers will aim to reach as many of the individual consumers for whom their message is relevant, using a diverse array of mechanisms to discover who these individual consumers are.Supporting DataAccording to the USC Annenberg Digital Futures Study, 55% of 12-24 yr olds believe their online community is as important as their offline community (an increase from 43% in 2007) One in three European social network users expect more of their future entertainment time to be spent with people they’ll never or rarely meet [Source: Future Foundation – European Entertainment Futures, Nov 08] Even for non-users of social networks that figure is 22%
We have to change too!Several things...The reality is that your customers are spending their time online. If you hope to be successful you must engage with your customers in the media that they are using!Recognise that the nature of how your customers are using this media have changed – it is now a heavy usage media with deep engagementThat means that online must no longer be just considered as a direct response media – that old model of the digital space is no longer relevantTargeting is now more crucial that ever and achievable than everWe must talk differently to our customers (entertain and engage)We must channel our influence And deliver real creativityChange the way we measureIn the industry most of us have understandably heard too much already from so-called “social media consultants”! Not such “web 2.0” was coined have we been subjected to such barrage! Nonetheless, there are some very sensible principles that have emerged to help capitalise on the very real opportunities offered by the increasingly socially connected web.1. Be TransparentThere are no secrets in the new world of influenceInformation distribution cannot be managed in the same way, its driven by consumersThe idea of control changes 2. Be part of the conversationThe new world of influence needs a more conversational approach; advertising should encourage interaction, input and community This means having a blog, being in social networks, creating content such as photos, videos etc – generally being part of the conversationGo to consumers – not just a branded websites3. Reach out to the creatorsThe creators are the new super influencers, the ones that make the most of the tools of social media. Bloggers, video creators, podcasters [Source: Univesal McCann – Next Thing Now – Wave 3 “When did we start talking to strangers?” Sep 2008]
Targeting is crucialAs a media owner, we are able to offer targeting by the simple metrics of socio-demographic, IP, geographic, but also by behaviours, context or re-messaging, and this is just the beginning.We can deliver customer insight by the minute. Not just a before and after summary of the consumer at one point in time. Our research (Context Matters, Nov 07) emphasises the need to overlay time, place, mood and motivation. All things that we are learning more about and elements that we are able to offer our advertisers in their campaign planning It’s about understanding the environment. For a media owner, it’s then about being able to provide clarity and a simple way of navigating the potentially confusing options. To deliver effective communication will require collaboration and the ability to put the message into the right context.
Search is great as part of in integrated marketing plan but if you are not doing the first bit you are going to lose!We know that 60% of all paid search queries are single word branded key words, that means that the brand work has been done before the search, the deal has been done all that remains is the purchase.To date online we have been focusing our marketing dollars on search and affiliate marketing etc this is the sales promotion direct response approach and it is out of date as it ignores something we know is true, our marketing logic and our life experience.Are you spending your digital marketing dollars in just one part of this Funnel– this cannot be affectiveWe know from marketing on non digital media that we must generate awareness , drive engagement, build brands, drive preference and then loyalty before we can hope that sales promotion will work . We know that when we search for things ourselves that we want to buy things that the search marketing is great but the sale has already been made before you get to searchGoogle is great and is like a sign post for your shop, its great for helping people to find your shop if they are already looking for it, it doesn’t convince people in the first place that your shop is a good place to be or that your products are right for them, only brand engagement can deliver that for you, so how can you get the best of both worlds... easy
The customer is KingAccepting and acting on this reality means the over-riding objective must be to provide content that is relevant, engaging and personalised and delivered via the channel that the user is most comfortable in. We need our customers to tune into our marketing communications, to embrace it and share it with their friends, to become our external marketing team and not just change the channel i.e. advertising that really appreciates the new role of the consumer as a self-regulator, actively choosing content and messages that are relevant to them. Advertising and marketing that has the user at its core, in this environment Creativity is crucial!
And its time to get seriously creativeThere is a definitive hunger for creativity and increasingly it’s digital media that is delivering this for brandsI just want to show you two examples showing how this was achieved recently on MSN and Windows Live these are award wining campaigns and you will see that while one of them is an all singing all dancing, viral, advertising extremely creative piece the other is largely just an intelligent rich media banner that sat on WL messenger and MSN only and drove CRM and brand engagement. Both worked brilliantly with astounding results in very short time periods
Brand building – via engagement with your adWe are trying to get this video so that it plays in the slidePlease watch the movie – it’s self explaining.Key messages: Engaging, fun and entertaining campaign, long interaction time & branding.
E-mail capturing and brand building
So we need to measure more than just click through’sWhether you are a media owner, agency planner or marketer accountability has to be at the core of the partnership. How do you measure results in the new environment? And what are the real measurements of success?We must embrace the new reality and focus much more on engagement and sharing metrics, time spent and impressions and minutes with the brand and not just think that the only measure for success is the last click though.
Your environment is changing your opportunity is to lead the chargeThe future for digital advertising is easy to predict you already know what it is! You have seen how already WE is setting the pace followed by CEE and right now Greece is moving in the right direction. At its simplest it’s about a conversation between brands and consumers. As a media owner it’s about changing the way people approach, buy and use online media. Don’t deliver a standard media plan to your clients — shape it for their requirements and their audience, where that audience is, what will sustain their attention and engagement with the message and brand and driving the full purchasing funnel not just the last click bit.So why not lead the charge!

The Changing Face of Successful Digital Marketing — Presentation Transcript

The Changing Face of Successful Digital MarketingErvan PouliquenConsumer & Online GM CEEMicrosoft
Agenda
How digital is changing advertising
Microsoft journey into the media space through technology and social media
‘09 ad spend to fall by 0.2%
TV + 0.5%
Newspapers -3.8%
Internet +9.5%
55,000 voter registration forms
350,000+ content downloads
The changing landscape
Source: WPP/Group M Advertising Forecast, December 2008
Media yesterday
Media 90 years ago
Media 60 years ago
Media 30 years ago
Media 10 years ago
Media today & tomorrow
Display
Broadcast and digital radio
Digital: banners and text
Display
Radio
Text links
Micro-sites
Text links
Radio
Radio
Print and reusable paper
Video advertising
Micro-sites
TV
Rich media
Radio
Print
In-game ads
Video
Print
IPTV
In-game ads
Radio
Print
Mobile ads
Social networking
Rich media
Ad-funded apps
User generated
IPTV
Pre-roll
Mobile ads
Micro-sites
Print
Print
Video advertising
Social networking
Rich media
Interactive video
5 second spot
Ad-funded apps
Broadcast and cable TV
Mobile video ads
Portable media ads
Ad-funded OS
Broadcast and IPTV
Digital product placement
Broadcast and cable TV
Broadcast and cable TV
35% of European Internet users feel lost withouttheir Internet access, only 27% say the sameabout Television
The audience is stillwatching.
But where
andwhen?
WE: Ad spent vs. time used
Source: Ad Spend – ZenithOptimedia Dec08 – Western Europe Time Spent – EIAA Mediascope 2008 – European Average
CEE: Ad spent vs. time used
Source: Ad Spend – ZenithOptimedia Dec08 – Central & Eastern Europe Time Spent – EIAA Mediascope 2008 – European Average
“The role of advertising is to link consumers to products, brands & services…”
Nigel Morris CEO Isobar Worldwide
It’s the same game,withnew rules
What does it mean for you?
Source: Universal McCann – Next Thing Now – Wave 3 “When did we start talking to strangers?” Sep 2008
Targeting is more important than ever
Last-Ad ROI and the Purchase Funnel
Awareness, brand engagement, preference, through…
Display, Social Media, Viral CRM etc on Portals, Video, News, Entertainment, Sports, Music, Technology, Travel, etc…
1st Week 2nd Week 3rd Week 4th Week
Search Engines, Affiliates
“
for the first time the consumer is boss,
which is fascinating, scary and terrifying
because everything we used to know
”
will no longer work
Kevin Roberts CEO, Saatchi & Saatchi
The cry forcreativity
Cadbury Dairy Milk
Bronze winner consumer goods / FMCG
Key Messages:
- Brand campaign
- 1 in every 200 people who saw this
engaged with it
- average engagement time 5.5 minutes
Mars UK – Run-of-Network
35,000 emailscaptured in one single day!!
Login MPU
Synchronised
Messenger
- 10% of users played the game
- 60% played more than once
- 18% interacted with IM banners
- Brand exposure 10x more in IM then on homepage
Homepage
© 2008 Eyeblaster. All rights reserved
“People will be less enthused about impressions and more enthusedabout outcomes”Rob Norman – Global CEO, GroupM Interaction
Accountability is a sharedresponsibility
“
The best way to predict the future is to invent it
”
Allen Kay (Technology Guru)
Ecosystem of the future?
“The agency of the future....will be a bundle of moving parts, open source collaborationsand unexpected partnerships
It will be obsessed with people: employees, clients and consumers
It will be an ecosystem built to inspire ideas.” Laura Desmond, CEO Starcom MediaVest
Source: Laura Desomd, CEO Starcom MediaVest, The Agency of the Future, Contagious, Q3 2008
Is the future digital?
Agenda
How digital is changing advertising
Microsoft journey into the media space through technology and social media
Microsoft’s Journey
Microsoft
Media
Network
Services
Software
2000
2005
2009
1995
Storytelling Across Devices
NATURAL USER INTERFACE
PHONE
TV
PC
Customer Solutions in Action
LookingGlass
Microsoft Share of Minutes Online
Source: comScore, March 2009
Global Audience Snapshot
26
Microsoft Online Position in Hungary
Mail
Users*
Spaces Users*
IM
Users*
#1 in Hungary
#4 in Hungary
#3 in Hungary
Users of blogging and personal pages. We expect social networking users to rise significantly with photos, groups, events, profiles, feeds, and more in our new November 2008 release
Generating 67M PVs per month
Generating 0,9B sessions per month
2,5M
0,9M
0,6M
Jan 09
Jan 09
Jan 09
* Defined as active Windows Live IDs who have logged in to the corresponding service in the last 30 days
Windows Live Messenger as a marketing tool
Live Messenger user profiles – Apr 09, Hungary
Live Messenger as marketing communication channel

The Changing Face of Successful Digital Marketing

by Ingrid Ihasz on Dec 06, 2009

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The Changing Face of Successful Digital Marketing — Presentation Transcript