The Future Of Digital Marketing, Search & Social Marketing

Digital Marketing The Future of Wolter Tjeenk Willink

INTRODUCTION

Wolter Tjeenk Willink, founder of Traffic Builders B.V.
Full service search engine marketing agency
Search engine advertising (SEA)
Search engine optimization (SEO)
Conversion optimization (web analytics, usability)
Outsourcing services
Consultancy / Training
Detaching / Aiding inhouse SEM teams
WHAT WE DO...

Search engine optimization for your excisting website or online shop
Aid you in concepting and the SEO-proof development your new site
Update your website frequently with SEO optimized content
Setup and manage your PPC campaigns in Adwords, Yahoo, MSN
Create low-cost, high-impact branding with Google’s site targetting
Optimize landing page performance through A/B or multivariate tests
Increasing online conversion rates through advanced web analytics
Tooling and advise on how to track cross-channel ROI contribution
Etc.
OUR SERVICE TO YOU MIGHT INCLUDE

TODAY’S AGENDA

IN THIS PRESENTATION…
Marketing challenges
Today’s statement
Online marketing trends, facts & figures
Integrated online marketing strategies for B2C and B2B
Social media marketing
Search marketing
Key take aways

Some of the challenges in marketing we face today:
Selecting the right media channels/marketing instruments
Making optimal use of those marketing instruments
Integrating channels for synergy and consistency
Tracking accountability of your marketing spendings
Dealing with short-term ROI focused management
Budgetting
MARKETING CHALLENGES

Marketers and management should focus on a long-term, integrated/holistic online marketing approach instead of a short-term, direct response driven ROI calculation.
STATEMENT FOR TODAY

ONLINE MARKETING FACTS & FIGURES

Internet is the second largest medium
Gaming outranks reading the newspaper in age 20-50
INTERNET VERSUS OTHER MEDIA Source: SPOT, June’08

Time spend online has doubled in just 2 years!
INTERNET VERSUS OTHER MEDIA Source: SPOT, June’08 Age group 20 to 65 years

Approx. 11 million internet users in NL
90% of those use broadband (cable/DSL)
INTERNET USAGE BY CONNECTION Source: CBS

Increased use of laptops: 44% in 2007
Increased use of mobile devices: 21% in 2007
INTERNET USAGE BY DEVICE Source: CBS

95% of the users communicate online through chat, forums, e-mail, etc.
INTERNET USAGE BY ACTIVITY Source: CBS

95% uses search engines regularly
Over 30% of internet users use Social Media
INTERNET USAGE BY ACTIVITY (2) Source: CBS

In 2007, approx. 70% of all users bought online, of which 60% within a period of 12 months
USE OF ONLINE SHOPPING Source: CBS

Travel, software/hardware and clothing remain popular
TYPE OF PURCHASE BY CATEGORY Source: CBS

Online sales expected to reach 4.8 billion euro
ONLINE SPENDINGS Source: Thuiswinkel.org

30% of Dutch internet users use social media:
Chat sites, like MSN
Forums, like Tros Radar or Vara’s Kassa (popular Dutch consumer forums)
Social network sites, like LinkedIn and Hyves
Bookmark sites like , Reddit, NuJij and eKudos.nl
Blogs varying from “Marco’s recipe site” to
RSS distributors like Feedburner
Mini-Blog applications like Twitter
RISE OF SOCIAL MEDIA

Your target audience expects you to “socialize” (1):
60% of US internet users use social media
93% of those users expect companies to have social media presence
85% believes companies must interact using social media
56% feel a stronger connection and better served
WHY ENGAGE IN SOCIAL MEDIA Source: Cone Business 2008

Your target audience expects you to “socialize” (2):
43% believes companies should use social networks to solve consumer problems
41% feels companies should solicit feedback on their products and services: enabling co-creation
37% wants companies innovate in brand interaction online
25% even says companies should market to consumers
WHY ENGAGE IN SOCIAL MEDIA? Source: Cone Business 2008

Social media in The Netherlands 2008
SOCIAL MEDIA USAGE IN NL Source: Ruigrok | Netpanel 2008

The majority of your target audience is online,
searching for information,
interacting with your brand,
through multiple channels like search and social media,
buying your products and services online,
or offline...
But how do we respond in terms of marketing?
TEMPORARY FINDINGS

We’re shifting budget from outdoor and print to online
MEDIA BUDGET ALLOCATION 2008 Source: IAB

Whilst internet consumes 28% of our media attention...
...online marketing is still at a 19,1% budget share(?)
MEDIA BUDGET ALLOCATION 2008 Source: IAB

50% was spent on Search (9.6% of overall budget)
25% was spent on display advertising (4,8% of overall)
ONLINE MEDIA BUDGET ALLOCATION Source: IAB

We are shifting more budget to online.
We are following the crowd, thus:
We have to share the same inventory with more advertisers while the user attention span gets shorter ...
...and online marketing gets more expensive
We are still pushing instead of pulling or interacting
New online marketing methods are adopted slowly
Let’s look at some example cases
TEMPORARY FINDINGS

EXAMPLE CASE 1: THE LONG TAIL Total search volume Number of unique search phrases Low High High High number of competitors and direct conversions per search phrase at high costs per conversion The Long Tail in search engine marketing Low number of competitors and direct conversions per search phrase, but high long-term ROI contribution and low cost per conversion

EXAMPLE CASE 1: THE LONG TAIL Motivation Longevity of buying motive Occasional Life style Permanent need Occasional need Temporary need Life Stage “ Mortgage quote” “ Buying a house” “ Having a baby” “ Carp fishing tips” “ Bicycle routes”

EXAMPLE CASE 1: THE LONG TAIL We should also be here (branding, long-term) Motivation Longevity of buying motive Occasional Life style Permanent need Occasional need Temporary need Life Stage We are here (transactional, short-term)

EXAMPLE CASE 2: TRACKING ROI Online advertisers Offline sales & cross-media Track effect of Search on offline conversions, ROI contribution within online cross-media strategies, etc. Branding & Customer Lifetime Value Track online/offline cross-media contribution to branding and ROI Online direct response / ROI Track views, clicks, CTR%, whitepaper downloads, online sales, etc. Direct reponse within the same user session or max. 30-day period.

EXAMPLE CASE 2: TRACKING ROI comScore study 2007 Direct response in Search Engine Marketing accounts for just 17% of total sales! Also: 30% of all internet users delete 1 st and 3 rd party cookies regularly!

EXAMPLE CASE 2: TRACKING ROI comScore study 2007 Calculating real conversion worth per euro based on attribution of Latent sales , Cookie deletion correction and offline sales . Tracked conversion worth Real conversion worth

INTEGRATED ONLINE MARKETING STRATEGIES

Long term (2 – 5 years)
Mobile marketing for ROI
Behavioral targeting (still a bridge too far for most of us)
Do use Mobile Search for branding purposes and keeping
up with mobile use in your branch.
RECOMMENDATIONS

Short term (1 – 2 years)
Invest in inhouse knowledge of Search and other online marketing channels that are vital for you
Create a separate online marketing department or job
Create a multi-disciplinary task force consisting of IT, online, offline, PR and management . Get them involved ; make them part of the process .
RECOMMENDATIONS

Short term (1 – 2 years)
Seriously invest in web analytics: increase conversion %
Split marketing budget into ROI-driven and Branding
ROI-driven budget should be flexible if possible
Take into account Latent ROI, Cookie deletion, Offline i/a
Invest in content-based marketing, especially in B2B
Share knowledge, not just information
Invest in social media in 2009: be out there
RECOMMENDATIONS

Need for an long-term, integrated/holistic approach to:
Search
Organic
Paid
Social media marketing
Affiliate marketing
Display advertising
And offline marketing
ONLINE STRATEGIES FOR 2009

Understand where search engines are moving into:
Personalized search experience
Social search
Universal search
Contextual brand mentioning
Other trends include:
Mobile search
Automated text translation
Voice based search / voice to text
SEO STRATEGIES FOR 2009

Personalized search
User preferred content ranks higher
Behavioral targeting of search results
SEO STRATEGIES FOR 2009 Step 1 Step 2 Step 3

Social search
Social bookmark sites gain importance
How does this affect your website, knowing:
Sites sharing knowledge will gain popularity over sites with information?
Sites that offer brand experience will gain popularity over product sites?

Universal search
Search results now include: blogs, video, RSS feeds, podcasts, images, books, shopping, maps, scholar, etc.
How does this affect your website, knowing:
Your site probably has little non-product/service related content?
And it’s probably not likely that fresh content will be added any time soon?

Contextual brand mentioning will influence organic rankings
Google is able to track where and in which context your brand or company name is mentioned
Google also knows yourdomain.com is the most relevant for “YourCompanyName”
1 + 1 = 3. How does this affect your company, knowing:
Your PR department does not take into account blogs, portals and other online authorities in your branch? Let alone SEO?
Nobody bothers to “socialize” online, responding to blogs

Due to Google’s improved Quality Score invest in:
Broadening your search phrases (in numbers)
Make use of different keyword match types like [exact]
Optimize your landing page:
to improve textual relevance
to decrease bounce rates
and ultimately increase conversion rates
SEA STRATEGIES FOR 2009

Think of Google’s network when considering branding
Improved content network for contextual ads
Reasearch indicates a 50% rise in brand awareness/association
Largest network of site owners/publishers in The Netherlands for low-cost, high-impact display advertising, video advertising, etc.
Exposure on YouTube
SEA STRATEGIES FOR 2009

Social media examples to help you get started
Business to business:
Actively engage in blogs or start your own, publish articles and have users ‘Digg’ them or add your RSS feed, publish video content
Basically: share your knowledge, interact, pull , don’t push
Financial:
Start a blog to answer consumer questions, enable user ratings for assurance agencies (coming soon), etc.
SOCIAL MEDIA MARKETING

Social media ideas to get you started
Travel:
Have users rate accommodations, write reviews, recommend activities nearby, share their holiday pictures, give them the opportunity to send an holiday eCard with their own photo, etc.
Provide an environment to enforce and prolong the holiday experience.
Consumer Electronics:
My personal favorite: Will it Blend? The iPhone edition

Social media ideas to get you started: Will it Blend?
http://www.youtube.com/v/qg1ckCkm8YI&hl=nl&fs=1
Viral video
6 million views within a week on YouTube
Over 13.000 ‘votes’
Almost 6000 comments
Sales increased by 500 percent

Get management involved and informed, continuously
Split online marketing budget into a flexible Direct response budget and a Branding budget
Improve (cross-media) web analytics / ROI calculations
Optimize landing pages and goal conversion funnels
Gain inhouse knowledge of important online media
Be patient: there’s more than direct response
Now get out there and socialize!
CONCLUSIONS

Wolter Tjeenk Willink Mark Tijssen Managing Director Sales Consultant
Traffic Builders B.V. Schoutstraat 63 1315 EW Almere, NL Tel. +31(0)36 53 742 41 More about search engine marketing: www.traffic-builders.com
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