Promotions 2.0

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Promotions 2.0

  1. 1. PROMOTIONS 2.0 The future of interactive marketing
  2. 2. The Big Shift Advertising isn’t what it used to be
  3. 3. New technologies, fragmented media, and a new generation of empo wered consumers are rapidly changing the world of advertising...
  4. 4. Weʼre Spending Less Time Here... Radio TV Print -19% -33% -30% Decline in time spent with traditional media due to increase in time spent online Arbitron Research: Internet and Multimedia Study
  5. 5. ...And More Time Here. New technologies are captivating consumers
  6. 6. Social Media Social Media is the new Mass Media 200 million 200 150 120 million millions 98 million 100 50 32 million 3.6 million 0 MySpace Facebook Super Bowl American Idol People Magazine
  7. 7. Media fragmentation is increasing. In 1971, the average person encountered approximately 500 ad messages a day David Schenk, Marketing Smog
  8. 8. 8 Today, that number is almost 5,000 making it harder to engage consumers. David Schenk, Marketing Smog
  9. 9. dvert ising On line A flat with ates have been R “CPM ults for the past 2 years.” declining res now .01% ough rates Average click thr Online Promotion spen s ding expected to tr iple over the next 5 years surpa ssing all other online advertising c Borell Associa te ategories. s: The Big Shif t Research Re port (April 20 08)
  10. 10. Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 million US consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million 110 million mobile Browse the web from their mobile phone** Participate in customer Social Networks* PASSIVE 95 million Participate in community producer 50 million online Contests Have created online content* & Sweepstakes**** participant *Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
  11. 11. 30.0 2008 2012 22.5 ($ in Billions) 15.0 7.5 0 Promotions Email Search Video Display Online Promotions Spending expected to surpass other online advertising categories over the next 5 years. Source: Borell Associates inc. 2008
  12. 12. Because promotions deliver results... 60% 80% 82% of US consumers of online of consumers have purchased consumers have will provide personal a brand due to a entered a information in exchange promotion.* sweepstakes.** for a chance to win.*** *IMI International **eMarketer ***Jupiter Research: Online Privacy Report
  13. 13. The New Marketing Mix Advertising + Digital Promotions Quadrant 4 = most value Increased Value Increased Value High Promotions + Advertising 4 Increased relevance & entertainment By combining digital promotions & 2 4 advertising both relevance & entertainment value is increased @ moving closer to Quadrant 4. @ Relevant Television Advertising 3 Low Relevance - High Entertainment 1 3 2 Internet Advertising High Relevance - Low Entertainment Mass Marketing 1 Low Low Relevance - Low Entertainment Low @ Entertaining @ High Relevance & Entertainment 2 axis that create consumer value in marketing: While all marketing is capable of playing in quadrant four, no single medium has broken through. Source: Joseph Jaffe
  14. 14. Old Marketing New Marketing Spray & Pray Attract & Engage Large Audience Smaller Audiences Low Relevance High Relevance Low Return High Return
  15. 15. Promotions 2.0 Marketers are using digital promotions today to create buzz & cut through the clutter
  16. 16. Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand Engagement Brand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement
  17. 17. 70% of CPG Super Bowl Advertisers used interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine
  18. 18. User Generated Contests deep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenue winning USA TODAY'S 2009 Super Bowl Ad Meter
  19. 19. Advergames brand messages become viral brand experiences 30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll
  20. 20. Advergames brand messages become viral brand experiences 40 30 20 10 0 Advergames Video Tell-a-Friend Advergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey
  21. 21. Mobile Integration participation anytime or anywhere Largest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit
  22. 22. Inclusive Experiences Everyone wins something. Someone wins everything. One person wins a trip to the World Series One college wins a private concert Everyone wins a taco if base with the Dave Matthews Band is stolen during the game Everyone watches online
  23. 23. Social Promotions promotions worth talking about 78% of consumers trust consumer recommendations over advertising Nielsen “Trust in Advertising Study” 2007
  24. 24. Promotion Hell Poor planning can lead to big problems
  25. 25. Warning! Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.
  26. 26. Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of) No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
  27. 27. Rock the Vote Starbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”
  28. 28. Pepsi Stuffed Harrier Jet a steal at 700,000,000 points Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet. Result: Out of court settlement and a whole lot of bad PR.
  29. 29. Promotions 3.0 What’s next for advertising & promotions?
  30. 30. Clutter Continues Brands will look for new ways to engage consumers as media & product proliferation expands M
  31. 31. Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform 65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit
  32. 32. Social Media Expands Social Media is bigger than you think... and it’s just getting started U.S. Social Network Usage All Adults 35% Adults 18-24 75% * Pew Internet & American Life Project, December 2008
  33. 33. Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers
  34. 34. teamDigital teamDigital is an interactive marketing agency specializing in technology driven promotions that leverage new channels and technologies including online, mobile, & social networks to engage consumers and create measurable brand value. Email info@teamDigital.com + Website www.teamDigital.com Blog www.Promotions2.com

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