Web 2.0 > Agency 2.0 > Design 2.0 Clement Mok Free-agent Sapient Global Director of Design Planning May 16, 2006

An overview of the challenge A way to think about the problem Agency 2.0 Web 2.0 > Agency 2.0 > Design 2.0

An overview of the challenge

A way to think about the problem

Agency 2.0

FUNNY SHIT “ “

Top-Line Market Summary Growth Projected $22B market by 2008 with a 14% CAGR $450M analytics market posting 50% CAGR with very few non-vendor participants $250B

Growth

Projected $22B market by 2008 with a 14% CAGR

$450M analytics market posting 50% CAGR with very few non-vendor participants

Top-Line Market Summary Focus of Growth Interactive agency acquisitions by traditional ad agency holding companies continue – 45% of AdWeek’s Top 50 Interactive agencies are owned by holding companies 96% of marketers agree that technology is vital to the success of marketing 63% of marketing technology decisions are made by marketers Top three technology themes for marketing departments 1) customer info systems 2) better online experience 3) better multichannel experience

Focus of Growth

Interactive agency acquisitions by traditional ad agency holding companies continue – 45% of AdWeek’s Top 50 Interactive agencies are owned by holding companies

96% of marketers agree that technology is vital to the success of marketing

63% of marketing technology decisions are made by marketers

Top three technology themes for marketing departments

1) customer info systems

2) better online experience

3) better multichannel experience

Impacts of Changing Market Business leaders are: Unsure what dials to turn to drive desired impact and insights Forced to justify all expenditures and drive efficiencies Clambering to find news ways to connect with and maintain consumers

Business leaders are:

Unsure what dials to turn to drive desired impact and insights

Forced to justify all expenditures and drive efficiencies

Clambering to find news ways to connect with and maintain consumers

Impacts of Changing Market Consumers are: Shopping and engaging companies via multiple channels Developing ADD and more control over receiving of messages Not motivated by any single touch-point

Consumers are:

Shopping and engaging companies via multiple channels

Developing ADD and more control over receiving of messages

Not motivated by any single touch-point

“ “ SHIFT IS HAPPENING WITHOUT THE HYPE

CONSUMERS HAVE CHANGED OVER THE YEARS (some designers, marketers and agencies still think and behave as if it’s 1975)

POWER TO THE PEOPLE “ “

“ broadband is beautiful” “ we’re smarter than advertisers think” “ I relate to this brand” “ I do my own research” “ don’t sell me, engage me” “ free to choose” “ don’t tie me down make it mobile” “ I Tivoded it”

Blog Podcast Google Yahoo Microsites Cell phones Ebay

Pre-Digitalization Product Development Delivery of Products and Services Marketing Sales

Web 1.0 Product Development Delivery of Products and Services Marketing Sales Internet Digital Media BackOffice IT

Web 1.5 Product Development Delivery of Products and Services Marketing Sales Internet Digital Media BackOffice IT Web Analytics Tools Experience Modeling Experience Design CRM/CMS

Effects of Web 2.0

Web 2.0 Product Development Delivery of Products and Services Marketing Sales Internet Digital Media BackOffice IT Web Analytics Tools Experience Modeling Experience Design CRM/CMS

Web 2.0 Web 1.0 DoubleClick Ofoto Akamai mp3.com Britannica Online Personal Websites eVite Domain name speculation Page vies Screen scraping Publishing Content Management Systems Directories (taxonomy) Stickiness Web 2.0 Google AdSense Flickr BitTorrent Napster Wikipedia Blogging Upcoming.org and EVDB Search engine optimization Cost per click Web Services Participation Wikis Tagging (“folksonomy”) Syndication

Web 1.0

DoubleClick

Ofoto

Akamai

mp3.com

Britannica Online

Personal Websites

eVite

Domain name speculation

Page vies

Screen scraping

Publishing

Content Management Systems

Directories (taxonomy)

Stickiness

Web 2.0

Google AdSense

Flickr

BitTorrent

Napster

Wikipedia

Blogging

Upcoming.org and EVDB

Search engine optimization

Cost per click

Web Services

Participation

Wikis

Tagging (“folksonomy”)

Syndication

Web 2.0 Companies Services not packaged software with cost effective scalability Control over unique, hard-to-recreate data sources that get richer as more people use them Trusting users as co-developers Harnessing collective intelligence Leveraging the long tail through customer self-service Software above the level of a single device Lightweight user interfaces, development models and business models

Services not packaged software with cost effective scalability

Control over unique, hard-to-recreate data sources that get richer as more people use them

Trusting users as co-developers

Harnessing collective intelligence

Leveraging the long tail through customer self-service

Software above the level of a single device

Lightweight user interfaces, development models and business models

Current firms focus on developing best practices within their own domains Product Development Delivery of Products and Services Marketing Sales Internet Digital Media BackOffice IT Web Analytics Tools Experience Modeling Experience Design CRM/CMS

Web Agencies For Transaction-Led Projects $500B

TOTAL CUSTOMER EXPERIENCE MARKETING TECHNOLOGY creative design strategy measurement CRM PodCast Blog brand iTV TV radio experience map experience models value co-creation digital asset management web analytics data driven analytics measured touch-points

POWER TO MARKETERS?…DESIGNERS?

What Strategy Execution Hard Results Soft Results Who Best Practices New Methods ROI Foresight Traditional Ad Agency Interactive Agency SEM / Viral Marketing Specialists System Integration Firms Business Consulting Agency 2.0

Agency 1.0 Agency 2.0

Built in latency 3-month learning cycle 50 years of legacy to protect Organization of individuals Wait for the big bang Genius with a thousand helpers Pyramid organization Big Concept Advertising Play Claims full service but actually specialists. Outsource things they can’t do. i.e. great brand shop, great direct mail shop. Medium bias consulting. It will always be a communication problem solved with an ad. Media is decoupled from creative execution Real time 3-day learning cycle Predict the future by inventing it. Organization of teams — ongoing improvement with intelligence to optimize Collaboration is a requirement and a core competency Platform Play Understands and leverage the power of the network Media is the message Embrace Web 2.0 - RSS, blogs, wikis Media is an integrated part of the solution. It’s not decoupled. Agency 1.0 Agency 2.0

Built in latency

3-month learning cycle

50 years of legacy to protect

Organization of individuals

Wait for the big bang

Genius with a thousand helpers

Pyramid organization

Big Concept Advertising Play

Claims full service but actually specialists. Outsource things they can’t do. i.e. great brand shop, great direct mail shop.

Medium bias consulting. It will always be a communication problem solved with an ad.

Media is decoupled from creative execution

Real time

3-day learning cycle

Predict the future by inventing it.

Organization of teams —

ongoing improvement with intelligence to optimize

Collaboration is a requirement and a core competency

Platform Play

Understands and leverage the power of the network

Media is the message

Embrace Web 2.0 - RSS, blogs, wikis

Media is an integrated part of the solution. It’s not decoupled.

Technology is a channel of delivery Believes technology has taken the control away Believes technology reduces their ability to manage brand contact Views technology as a commodity— I.e. DoubleClick, iCrossing, Omniture, Believes they build brands Technology is a critical tool to harness Micro-data becomes product development research on steriods Views technology as a surgical instrument Believes the customer owns and build the brand. The agency is merely there as catalyst to acquire, retain and enhance brand attributes. Agency 1.0 Agency 2.0

Technology is a channel of delivery

Believes technology has taken the control away

Believes technology reduces their ability to manage brand contact

Views technology as a commodity— I.e. DoubleClick, iCrossing, Omniture,

Believes they build brands

Technology is a critical tool to harness

Micro-data becomes product development research on steriods

Views technology as a surgical instrument

Believes the customer owns and build the brand. The agency is merely there as catalyst to acquire, retain and enhance brand attributes.

What does Agency 2.0 look and feel like? Product Development Delivery of Products and Services Marketing Sales

EXPERIENCE INNOVATION & MODELING RESEARCH & ANALYTICS DIGITAL MEDIA DESIGN & MERCHANDISING CUSTOMER STRATEGY AND MANAGEMENT MARKETING STRATEGY AND INTEGRATION SEARCH ENGINE OPTIMIZATION & MARKETING MEDIA SERVICES MARKETING TECHNOLOGIES CAMPAIGN MANAGEMENT + + + +

Sapient’s Experience Marketing

Real-time optimization requires “live” data and the tools to affect change Integrated: Campaign Management, intelligent ad serving, email delivery, advanced analytics applications Real-time Online Reports Technology Enabled Marketing BridgeTrack ®

Real-time optimization requires “live” data and the tools to affect change

Integrated: Campaign Management, intelligent ad serving, email delivery, advanced analytics applications

Real-time Online Reports

Rapid-Cycle Testing • Leverage real-time focus groups and online panels • Identify the most efficient campaign within hours • Glean consumer insights for the best: Positioning, imagery, call to action, etc. TRUTH THROUGH PROOF average CPA C1 C2 C3 C4 C5 C6 C7 C8 C9

Be good and do some inspire work