Promotions 2.0

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Our original Promotions 2.0 Presentation from spring of 2009.

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Promotions 2.0

  1. 1. PROMOTIONS2.0 The future of interactive marketing
  2. 2. The Big ShiftAdvertising isn’t what it used to be
  3. 3. N ew technologies, fragmente d media, and a newgeneration of emp owered consumers are rapidly changing the world of advertising...
  4. 4. We’re Spending Less Time Here...Radio TV Print-19% -33% -30% Time spent with traditional media is declining Arbitron Research: Internet and Multimedia Study
  5. 5. ...And More Time Here.New technologies are captivating consumers
  6. 6. Media fragmentation is increasing.In 1971, the averageperson encountered approximately 500ad messages a dayDavid Schenk, Marketing Smog
  7. 7. 7 Today, that number is almost5,000 making it harder to engage consumers.David Schenk, Marketing Smog
  8. 8. A dvert ising O nline flat with ve been “CPM Rates ha years.” ults for the past 2declining res now .01% ough rates Average click thr Paid Search “Losing its luster and expe cted to peak this year, followed by a decline.” Borell Associa tes: The Big S hift Research Report (April 2008)
  9. 9. Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 millionUS consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million110 million mobile Browse the web from their mobile phone** Participate in customerSocial 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
  10. 10. 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
  11. 11. Because promotions deliver results...60% 80% 82%of US consumers of online of consumershave purchased consumers have will provide personala brand due to a entered a information in exchangepromotion.* sweepstakes.** for a chance to win.****IMI International **eMarketer ***Jupiter Research: Online Privacy Report
  12. 12. The New Marketing Mix Digital Promotions + Advertising Quadrant 4 = most value Increased Value Increased ValueHigh 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 Brand Advertising 3 Low Relevance - High Creative 1 3 2 Local or Niche High Relevance - Low Creative Mass Marketing 1Low Low Relevance - Low Creative 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
  13. 13. Old Marketing New Marketing Spray & Pray Attract & EngageLarge Audience Smaller Audiences Low Relevance High Relevance Low Return High Return
  14. 14. Promotions 2.0Marketers are using digital promotions today to create buzz & cut through the clutter
  15. 15. Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand EngagementBrand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement
  16. 16. 70%of CPG Super Bowl Advertisersused interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine
  17. 17. User Generated Contestsdeep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenuewinning USA TODAYS 2009 Super Bowl Ad Meter
  18. 18. Advergames brand messages become viral brand experiences30% of Super Bowl viewers say they are more likely to visit an advertisers Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll
  19. 19. Advergames brand messages become viral brand experiences 40 30 20 10 0Advergames Video Tell-a-FriendAdvergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey
  20. 20. Mobile Integration participation anytime or anywhereLargest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit
  21. 21. Inclusive Experiences Everyone wins something. Someone wins everything.One person win 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
  22. 22. Social Promotions promotions worth talking about Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers**People Magazine: 3.6 million readers monthly** *Comscore **infoplease.com
  23. 23. Promotion HellPoor planning can lead to big problems
  24. 24. Warning!Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.
  25. 25. Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of)No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
  26. 26. Rock the VoteStarbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”
  27. 27. Pepsi Stuffed Harrier Jet a steal at 700,000,000 pointsStudent 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.
  28. 28. Promotions 3.0What’s next for advertising & promotions?
  29. 29. Clutter ContinuesBrands will look for new ways to engage consumers as media & product proliferation expands M
  30. 30. Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit
  31. 31. Social Media Expands Social Media is bigger than you think... and it’s just getting startedU.S. Social Network UsageAll Adults 35%Adults 18-24 75%* Pew Internet & American Life Project, December 2008
  32. 32. Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers
  33. 33. David Griffith is managing director of +teamDigital, a brand based digital agencyspecializing in technology driven promotionsthat engage consumers, create loyalty, andincrease brand value.Blogwww.Promotions2.comWebsitewww.teamDigital.com

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