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...

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

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

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.

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

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

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

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

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

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

Internet is the second largest medium

Gaming outranks reading the newspaper in age 20-50

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

Time spend online has doubled in just 2 years!

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

Approx. 11 million internet users in NL

90% of those use broadband (cable/DSL)

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

Increased use of laptops: 44% in 2007

Increased use of mobile devices: 21% in 2007

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

95% of the users communicate online through chat, forums, e-mail, etc.

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

95% uses search engines regularly

Over 30% of internet users use Social Media

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

In 2007, approx. 70% of all users bought online, of which 60% within a period of 12 months

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

Travel, software/hardware and clothing remain popular

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

Online sales expected to reach 4.8 billion euro

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

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

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” (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

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

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

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

Social media in The Netherlands 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

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?

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

We’re shifting budget from outdoor and print to online

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

Whilst internet consumes 28% of our media attention...

...online marketing is still at a 19,1% budget share(?)

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

50% was spent on Search (9.6% of overall budget)

25% was spent on display advertising (4,8% of overall)

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

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

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

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.

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)

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 .

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

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

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

Need for an long-term, integrated/holistic approach to:

Search

Organic

Paid

Social media marketing

Affiliate marketing

Display advertising

And offline marketing

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

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

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

Personalized search

User preferred content ranks higher

Behavioral targeting of search results

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? SEO STRATEGIES FOR 2009

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? SEO STRATEGIES FOR 2009

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 SEO STRATEGIES FOR 2009

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

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

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

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

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 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 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 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 SOCIAL MEDIA MARKETING Viral video 6 million views within a week on YouTube Over 13.000 ‘votes’ Almost 6000 comments Sales increased by 500 percent

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

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!

END

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 HOW TO CONTACT US?

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