DigiMarketing
Key Tenets of Digital Marketing
May 2008

From “Perpetual (Digital) Revolution”
Together, hardware and software will be the
catalyst for advances during the next 10 years
that will far exceed changes of the last 30 years.
Mr. Bill Gates, AWSJ, January 25, 2008

Tectonic Shifts

Traditional Media Digital Media

Traditional Media Digital Media

Traditional Media Digital Media
TV IPTV
Radio Digital Radio
Billboards Digital POS

Traditional Media Digital Media
US $455b US $55b
23%
6%
Source: IBM, “Navigating the Media Divide” Study

Traditional Media Digital Media
?
The Cross-Over Point

Why GM Gambled $1.5B On Digital
Over the next three years, General Motors will shift half
of its advertising budget to digital. Will that be enough to
get the automobile manufacturer in gear?
Michael Estrin is associate editor at iMediaConnection.

Ongoing Confidence Gap
30%
25%
20%
15%
The Marketing Confidence Gap
10%
5%
0%
2003 2004 2005 2006 2007 2008 (E)
% Consumer Time Spent Online
% Advertising Dollars Spent Online
Source:Neo@Ogilvy

digital
will
predominate

Traditional DigiMarketing
Marketing

01 From “New Media” to
the New Mass Media (of One)

Worldwide Today
0.9 b PC users
1.3 b internet users
1.3 b landline phones
1.4 b credit cards
1.5 b email boxes (0.8b)
1.5 b TVs
1.8 b active sms users
3. 0b mobile phone subscribers
Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

New Media Barons

(cc) Lynette Webb, 2006

?

“Radio in My Head”

Yuan Shiao Nan

Mass Media of One (Addressability)
- Unique address
- Individual user behavior
- Personal settings & preferences
- Two-way – individual direct response
- Contextual content
Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

02 From Targets to Participants

Marketing Algorithm of Reach/Frequency

Engagement Metrics & Planning

From Mass to Personalization
03 (and the Privacy Paradox)

Ease and Stress
Ease and Frequency Stress

Access and Restriction
Unprecedented New Restrictions
Access

Tim Berners-Lee, BBC Interview, March 18, 2008:
On personal data:
“It’s mine – you can’t have it. If you want to use it for
something, then you have to negotiate with me. I have to
agree. I have to understand what I’m getting in return.”

August 4, 2006:
AOL released search records of 650,000
users over a 3-month period, 20 m searches
August 7, 2006:
they removed the file from their site
August 9, 2006:
New York Times identified & interviewed #4417749
August 22, 2006:
AOL Chief Tech Officer & 2 others “left”

September 12 2007:

Why personalize?
80%
want it
Up to
58%
will pay
more attention
if they get it!

04 From Selling to Serving

05 From Impressions to New Connections

QR Codes
Each one of these MOBICODES link to a specific mobile site.

Quick Response (QR) Code for North West Airlines

QR-Codes - MAGGI On-pack Communication
Inside Package
Outside Package

Outside Code to introduce MAGGI Recipe
1st week 2nd week 3rd week

New Connections
HKIA Program

06 From Old to New “Physics” of Marketing

August 23, 2004
A MAJOR MEDIA REVOLUTION HAS JUST OCCURRED…
Consumers Spent More to Reach Media Than Marketers Spent to Reach
Them. For years, the consumer went along with a model of intrusion
perpetuated by the networks, advertisers and ad agencies…
The consumer has decided to take over…
Consumers are willing to pay for personalized information and entertainment
that fits their interests.

Generated
User Content

Distribution Power Growing
You Tube: 58 Million monthly viewers*

Leverage Impacted of Viral
• Seen by and
estimated 500MM
X people globally
• Equivalent value
of $150MM+ in
Viral video media

12 DigiMarketing Shifts
From Traditional To DigiMarketing
1. Viewers………………………………………… Participants
2. Impressions……………………………………. Involvement
3. Broadcast Mindset……………………………. Addressable Mindset
4. Schedule-Driven………………………………. Time-shifted, Borderless
5. Marketer-Driven………………………………..Consumer-Initiated
6. Push Marketing…………………………………Opt-in and Share
7. Traditional Media Planning……………………New Media Planning
8. Managed PR……………………………………Digital Influence
9. Integrated Marketing…………………………..Unified Marketing
10. Data-Blind……………………………………….Data-Driven
11. Post-Campaign………………………………….Real-time
12. Partial ROI...…………………………………….Optimization

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