Digital and Emerging Marketing Tools
in a Downturn

The traditional marketing model is being challenged, and (CMOs)
can foresee a day when it will no longer work.
McKinsey Quarterly, 2005, Number 2

Source: Justin Kirby & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. xix
Crisis In Mass Marketing
18%: Proportion of TV advertising campaigns generating positive ROI

54 cents: Average return in sales for every $1 spent on advertising

256%: The increase in TV advertising costs (CPM) in the past decade

84%: Proportion of B2B marketing campaigns resulting in falling sales

100%: The increase needed in advertising spend to add 1-2% in sales

14%: Proportion of people who trust advertising information

90%: Proportion of people who can skip TV ads who do skip TV ads

80%: Market share of video recorders with ad skipping technology in 2008

95%: The failure rate for new product introductions

117: The number of prime time TV spots in 2002 needed to reach 80% of

adult population – up from just 3 in 1965
3000: Number of advertising messages people are exposed to per day

56%: Proportion of people who avoid buying products from companies who

they think advertise too much
65%: Proportion of people who believe that they are constantly

bombarded with too much advertising
69%: Proportion of people interested in technology or devices that enable

them to skip or block advertising

Information Proliferation
Media Fragmentation - Then, and Now

1960 Now
6 TV channels/home 130
8,400 Magazines 17,300
4,400 Radio stations 13,500
None Internet stations 35,000 +
None Pages on Google 12 B +
None Blogs 200 M +

Source: Marketing Leadership Council - www.mlc.executiveboard.com

Where Everything Is Headed
Today
Digital
Non-Digital
1996 2008 2050?
Source: Google

360 Digital Marketing World
Online eNewsletters Email Real Simple
eMail eCards
Media Syndication (RSS)
Content Partnerships
News
Community
sites Syndication
Special Manifestos
Blog Search Engines
Interest Conversations
Blog Aggregators
Blogs
Chat
Search Engine
Rooms/Events
Citizen
Optimization
Photo Blogs Action
Keyword
Listservs
eAlerts
Marketing
Message Boards
Search Meetups
Text-messaging
Press Rooms
Online
Web Sites Viral Games &
IM w/RSS
Content Contests Advertising
Wikis
Folksonomy Digital Radio
Social VBlogs
Bookmarking Podcasting
Webcasting
Digital
Phones DVR Game
Devices PDAs Microcasting
(Tivo) Consoles
Source: Ogilvy

Source: Brian Solis via Flickr

Social Media: Defined!
SOCIAL MEDIA IS AN UMBRELLA TERM
THAT DEFINES THE VARIOUS ACTIVITIES
THAT INTEGRATE TECHNOLOGY,
SOCIAL INTERACTION, AND THE
CONSTRUCTION OF WORDS,
PICTURES,VIDEOS AND AUDIO.
http://www.wikipedia.org

More Simply Put:
“Social Media is
people having
conversations
online.”

The conversations are powered by…
Blogs

Widgets

Micro Blogs

Online Chat

RSS

Social Networks

Social Bookmarks

Message Boards

Podcasts

Video Sharing Sites

Photo Sharing Sites

Virtual Worlds

Wikis

(…just to name a few)

Who‟s Out There?
More than half of all online American teenagers use

social networking sites.
64% of online teenagers created content

*

Who Participates in Social Media?
*

“Every brand needs to be relevant and part
of a community. They need to open a
dialogue with their consumers, but they also
need to be prepared for what could be
negative feedback and I don’t think all
marketers are ready for that.”
- Bob Ivins, EVP, comScore

“How-To”

Social Media Conversations
“There’s a real cost to
ignoring the
conversation.”

Word Of Mouth Is A Powerful Force
(evangelists)
Word of Mouth Among Airlines
Source: Harvard Business Review

No Love for Iams
What if half the store shelf
said, “Don’t Touch This?”

Learn to Blog
Foundation of

content/consistency/
connection
Metaphor for Social

Media & networking
Transferable skills to

video & social nets…
Transferrable benefits

to SEO, SEM & TLM

Small Business Bloggers

Blogging + Email

Micro Blogging
Monitor conversations

Use for promotions

Live „twittering‟ from

events
Source for breaking

info
For the hyper-involved


Comcast Learns Social Media…
Comcast tech filmed

sleeping…waiting for his own
customer service team.
A viral video & blog sensation (of

course!)
Popular blogger „Tweets‟ his

Comcast woes
Comcast calls him 20 min later

and resolves his issues!

Social Networks
To learn to express

opinions
To share experiences

To make friends

To participate

To find a job

To sell something


Niche Networks
Beyond Students
Over 500,000 dogs
Most dogs added in a day:
My Space Politics
5,920 (February 19, 2008)
Moms Investments
Real Estate

LinkedIn
Create a group & discussion

Connect with professionals

Connect with customers

Ask questions

Approach prospects


Idea-Centered Communities
Small business focused credit card company is
changing the business financing discussion
through ideas
Created ideablog.com to stir the

conversation about what it stands
for
Positioning itself as the most

helpful credit card company to
small business
Involved in other small business

related causes to help developing
countries
Online resources for small

business owners just getting
started

Collaborative Idea Generation
Leverage the wisdom of

crowds/customers to
improve the company
Submit, vote, watch, see

what gets put into action
Integrate into other TLM

activities
Dell

Oracle

Starbucks


Share Things
Like Photos… …and Videos

Podcasts & Vodcasts
More human &

emotional than
blogging
Share thought

leadership
Low investment

Easy distribution

Differentiator


Widgets, Gadgets & iPhone Apps
Small applications that meet specific

needs
Backed by high value data source

Brings your assets to a customers

desktop / homepage / website
Cannot standalone – needs marketing

„seeding support‟

Tell The World - PR 2.0

Intuit: Early Adopters of Social Media
Social Internal External
Media
Blogs  X-Intuit: Innovation teams at Intuit use  The QuickBooks Team blog focuses on
blogs to share new ideas & best practices QuickBooks and small business issues
 Within team: The JumpUp team uses  TurboTax Support blogs focus on tax
its blog to discuss strategy law and TurboTax
Wikis Well over 100 teams at Intuit use wikis to TaxAlmanac.org is the 21st most popular
manage projects, share insights and wiki in the world and focuses on tax
collaborate across remote locations issues for accounting professionals
Online Intuit employees regularly engage on  QuickBooks Online Community
online forums, run both by Intuit and by
Forums  Quicken Online Community
third parties, with clear guidelines about
 TurboTax Support Forums
posting and transparency
 Accountant Online Community
 JumpUp Small Business Forums
Other Research teams are using online  JumpUp launched summer 2006,
ethnography journals & vlogs to make it including tagging, bookmarks,
easier for SBOs to track daily activities personalized profiles and forums
 Podcasts launched by QuickBooks &
TurboTax

Top ten obstacles to new media
1) Inadequate resources (time and/or money)
2) Disconnected employees
3) Resistance to change
4) Desire to control communication/fear of unknown
5) Not convinced of benefits
6) Perceived lack of IT capabilities
7) Resistant culture
8) Senior management won‟t allow it
9) Legal/governance/regulation issues
10) Would require too much training

Ask Yourself…
How does information flow in my industry?

Where do people get their information?

Does information flow in a centralized way?

How do consumers interact in my industry?

Do they hangout in networks?

How big are these networks?

Is my industry conservative?

What influences my customers?

Who influences my customers?

Is my product risky?


You Define The Risks In Social Media
How do you ensure the brand is not comprised through comments?

How do you measure ROI? How do you know if you succeed?

How do you ensure the brand is not compromised through the company's

bloggers' posts?
Will we need to promote the blog/social media programs and how will

they impact our current marketing strategy?
What do we do if IT does not have time to be involved?

Is it worth the additional time?

Do you have the people resources needed?

Can you afford the additional operational (software, hosting) expenses?

What happens if your competitor is less risk adverse than you and steps

into the space first?
How do you safeguard against getting “blown-up?”


Five Keys to Success
Be Generous With Your Knowledge

 Share beyond the marketing speak
Be Consistent

 Calendar your activities – daily, weekly, monthly
routine
Always Deliver Value

 Listen, think, revise, teach, repeat
Take A Stand

 Take your strong positions to market
Focus On The Long-term Benefits

 Track your results in months & years

New Media Homework!
Find blogs in your area of interest using Technorati

Seek out podcasts for marketers (or whatever you

fancy) in iTunes or Podcast Alley
Sign up for a free RSS reader (Bloglines, Google

Reader) and consume feeds
Join LinkedIn

Anyone not visited YouTube yet? Look for your

favorite things there too

New Media Extra Credit
Become a regular commenter on blogs that interest

you
Join Facebook & ask a question on LinkedIn

Start a blog of your own on a topic of your choice

Create a podcast

Switch over some of your newsletter subscriptions to

RSS feeds
Get a Flickr account to share photos


Word of Mouth
Word of mouth: The act of

consumers providing information
to other consumers.
Word of mouth marketing:

Giving people a reason to talk
about your products and services,
and making it easier for that
conversation to take place.
It is the art and science of

building active, mutually
beneficial consumer-to-consumer
and consumer-to-marketer
communications.

WOM – Simple Steps to Start
Talkers: People who are more likely to relay your word of
1.
mouth message
Topics: Portable concepts for people to talk about, simple
2.
ideas that are word-of-mouth friendly
Tools: Techniques and technology that make it easier for
3.
word of mouth conversations to take place
Taking part: Participating in the word of mouth
4.
conversation and engaging in a genuine two-way dialog
Tracking: Measuring the online conversation
5.
Source: Andy Sernovitz

Community – Simple Steps to Start
Host customer events. Follow the Saturn model for hosting an annual
1.
customer picnic, or local/regional customer appreciation events.
Create owners groups. If you manufacture products, create and support
2.
owners groups, like Harley-Davidson does with the Harley Owners
Groups (HOGs).
Create an online customer support group. Think of the groups created
3.
by Dell Computer, Microsoft, eBay or Cisco.
Create an email discussion group. Think AMA SIGs - They're easy and
4.
free using Yahoo! or Google Groups and Topica.com. Ask several of your
members to act as volunteer moderators.
Feature the online community in other touchpoints. Your website,
5.
newsletter and call center should reference the community.
Support fan web sites. If you are lucky enough to have one…
6.
Adapted from: Creating Customer Evangelists

Q&A
Need help after the presentation? Email dana@marketingsavant.com