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Digital Marketing

A presentation on digital marketing given to several of South America's leading advertising agencies in May 2007.

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Digital Marketing - The Future is Now! Sao Paulo, May, 2007 Casper M øller, CEO
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Introduction
BRAND
HOW CAN YOU STAND OUT?
BRAND COMMUNICATION Who can shout the loudest?

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Digital Marketing

  • 1. Digital Marketing - The Future is Now! Sao Paulo, May, 2007 Casper M øller, CEO
  • 2.
  • 5. HOW CAN YOU STAND OUT?
  • 6. BRAND COMMUNICATION Who can shout the loudest?
  • 7. Noise! This is what the consumers hear…
  • 8. HOW DO YOU PLAN ON STANDING OUT?
  • 9.
  • 10. “ If you don’t like change, you’re going to like irrelevance even less.” General Eric Shinseki, Former Chief of Staff, U.S. Army
  • 11. Female Fever Eco-ecosystem Post-consumerism Modernism Generation C Transumerism Innovation Hypertasking LIFE CACHING MASSCLUSIVITY PLANNED SPONTANEITY CONFUSION Too many trends, and not a lot you can do about them Gravanity FLORIDASATION 5*STAR*LIVING Counter-Googling Dormandise EARLY BIRDING Diaspora Management HOME TROTTING IT-ISM MATURIALISM NOUVEAU NICHE POP-UP RETAIL SNOBMODDITIES SYMPVERTISING TRYVERTISING YOUNIVERSAL BRANDING VIRTUAL ANTHROPOLOGY BEING SPACES
  • 12. IT’S NOT ABOUT TRENDS… CHANGE
  • 13. IT’S ABOUT FUNDAMENTAL CHANGES CHANGE
  • 14. ELVIS HAS LEFT THE BUILDING The marketing rule book has been torn up and thrown out the window
  • 15. HYPERREALITY “ The World”, Dubai, United Arab Emirates
  • 17. HYPERREALITY Virtual, rather than real, communication Young people are scorning social interaction for virtual relationships.
  • 18. HYPERREALITY MySpace has 120 million members
  • 19. HYPERREALITY A sample MySpace profile
  • 20. Proliferation of media and consumption choices has meant that the rulebook gets thrown out the window FRAGMENTATION
  • 21. 300 FRAGMENTATION In the UK alone there are more than 300 TV channels
  • 22. Demographics are no longer enough FRAGMENTATION
  • 23. ONE “SIZE” NO LONGER FITS ALL
  • 24. Product and media consumption proliferates ONE “SIZE” NO LONGER FITS ALL
  • 25. Consumers have got a VOICE… and can make or break a brand CONSUMER POWER
  • 26. EXPERIENCE ECONOMY Luxury consumption has shifted
  • 27. THE OLD VALUE CHAIN Resources Goods/services Solutions
  • 28.
  • 29.
  • 31. STIMULI ORGANISM RESPONSE WHITE NOISE ??? INDIFFERENCE THE COMMUNICATION MODEL The old model is now officially dead!
  • 32. TRADITIONAL COMMUNICATION Above the Line: One to many communication BRAND X CUSTOMERS
  • 33. Perceived, rather than real, customer feedback AUTO-COMMUNICATION
  • 34. BRAND COMMUNICATION + CUSTOMERS = RESPONSE APATHY or DO YOU GET A RESPONSE? Do your customers care about what you try to tell.. and SELL?
  • 35. EVOLVED COMMUNICATION BRAND X THE CUSTOMER One-to-one communication: a TRUE dialogue. BTL at its best.
  • 36. THE NEW MARKETING PARADIGM The power of digital channels CUSTOMERS CUSTOMERS
  • 37.
  • 38.
  • 39. ARE THESE PEOPLE YOUR CUSTOMERS?
  • 40. … OR ARE THESE YOUR CUSTOMERS?
  • 42. CLARITY To true INTERACTION, CUSTOMER DIALOGUE & PURCHASES
  • 43. BRAVE NEW WORLD Are you ready for it?
  • 44. What is Digital Marketing?
  • 45. Email on the move TECHNOLOGY IS CHANGING
  • 46. UMPC – Ultra-mobile PC. Laptop power in the size of a PDA TECHNOLOGY IS CHANGING
  • 47. Get content anywhere TECHNOLOGY IS CHANGING
  • 48. View content anywhere TECHNOLOGY IS CHANGING
  • 49. The Media Center PC – the new heart of the home? TECHNOLOGY IS CHANGING
  • 50. Watch your TV away from home TECHNOLOGY IS CHANGING
  • 51. CONTENT VS. MEDIA Not necessarily all life-changing… + ?
  • 52. DIGITAL CHANNELS DIGITAL CHANNELS PODCASTS GAMES E-MAIL MOBILE PHONES VIRAL ELEMENTS VIDEO INSTANT MESSAGING BLOGS WEB SITES SEM BANNERS Some examples of digital channels
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  • 69.
  • 70.
  • 71. Estimated cost to build: $80,000 Confirmed revenues: $20 million + DING… $ $ $
  • 72. INTERACTIVE POSTERS What looks like an ordinary street poster
  • 73. INTERACTIVE POSTERS Allows you to interact and download your own ring tone
  • 74. INTERACTIVE POSTERS Or how about printing your own?
  • 76. HOLOGRAPHIC PROJECTIONS Just about any product can be re-produced in a 3D hologram
  • 78. Global, extensive reach More than 1 billion Internet users in the world 250 million have broadband Source: eMarketer, May 2006 THE NUMBERS
  • 79. 62% of UK population is now online & 71% are using broadband Source: IAB 2005 Broadband users are far more active online, spending twice as long online as narrowband users and viewing 3.5 times as many web pages * UPTAKE HAS BEEN FAST
  • 80. It is currently a relatively small market… In Turkey: 16 million Internet users 2.5 million broadband users – 1.72 end of 2005 Source: CIA World Factbook, 2005 Source: wi-fitechnology.com & Quantum-Web TURKEY
  • 81. But one that is growing fast!! In 2015: 24 million broadband users in Turkey CAGR: 31%! Source: Quantum-Web TURKEY
  • 82. Phones: 20 million fixed lines in Turkey 48.7 million mobile phone users Source: Turkcell, Telecommunications Authority, 2006 TURKEY
  • 83.
  • 84. Q: If you had to live on a deserted island and could take only one of the following with you, which would you take? Base = 1,000 online households Source: Ipsos U.S. Express, August 2004 CHANGING MEDIA CONSUMPTION Consumers can’t live without the Internet INTERNET Newspaper subscription 1 % Cell phone 4 % Radio 6 % TV 6 % Large supply of books 18 % Computer with Internet access 64 %
  • 85.
  • 86.
  • 87.
  • 88. EMERGING MARKETING TECHNIQUES Source: CMO Magazine, April 2005
  • 89. ONLINE ADVERTISING SPEND Source: ZenithOptimedia report, Financial Times, 01/10/2006 Search engine marketing is believed to account for more than half of all Internet advertising spend.
  • 90.
  • 91. GLOBAL ADVERTISING SPEND Source: ZenithOptimedia report, MediaPost 2005 Biggest sectors in online ad spend Financial services $1.6 billion Telecommunications $1.5 billion Retailers $1.3 billion Automobile $ 700 million
  • 92. Why Use Digital Marketing?
  • 93. WHY USE DIGITAL MARKETING? “ Catch the next wave before it catches you”
  • 94. WHY?
  • 96. Source: NMA Oct 2005, Brand Republic 2006 IT WORKS! Information now readily available to advertisers about online effectiveness
  • 97. THE CONSUMER PROCESS Digital, unlike all other, channels offer a return path Brand awareness measuring the level of familiarity with the brand Message association measuring how messages are linked to brand Brand favourability see if respondents have positive opinions to brand Purchase consideration likelihood of consumer purchasing the brand Actual purchase
  • 98. Online advertising spend INTEGRATED CAMPAIGNS WORK Brand awareness lift - TV: 17% - TV & online: 45% Source: Dynamic Logic Europe Online works well with other media
  • 99.
  • 100. Branding effect Marketing spend Television Internet DIMINISHING RETURNS Synergy Pattern TV & Online
  • 101. COST DRIVERS vs. ROI AWP % $/AWP % Ca. 20 % Internet TV COST/BENEFIT Source: MINDSHARE Using the Internet is the most cost-efficient way to create your first 20% awareness
  • 102. COST/BENEFIT Driving low cost awareness
  • 103.
  • 104. Percent Source: Dynamic Logic MarketNorms ONLINE BUILDS BRANDS Online Ad Effectiveness, European Averages +5.4% +45.3% +21.6% +5.6% +5.0%
  • 105. IMPACT ON BRAND ATTRIBUTES % Lift Source: NFO/Infratest Study Both media impact key brand attributes separately yet are more powerful together
  • 106. As a result of using the Internet 42% 74% 76% 42 77% Changed their mind about a brand they were going to buy and switched to a different brand Have personally researched and looked for information about a product or service before making a purchase Felt that the internet helps them make a more informed purchase decision Agreed that if they saw a negative review on the internet about a product or brand they would think twice about buying it Source: AOL Brand World Research 2005 PERCEPTION AND BEHAVIOUR Changing perceptions and behaviours through online
  • 107.
  • 108. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS There are several benefits to using digital and online marketing
  • 109. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Measurable ROI
  • 110. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Geographic, demographic and psychographic targeting
  • 111. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Can massively increase effectiveness of traditional advertising
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  • 115. Source: NMR, Top 20 advertiser’s spend in 2005 UK TOP 20 ADVERTISERS Total spend Internet spend % spent online % spend on all other media Top 20 advertisers 1,757,128,753 30,683,912 1.75 98.25 Unilever UK Ltd 217,374,235 467,782 0.22 99.78 Procter & Gamble Ltd 183,764,561 531,664 0.29 99.71 COI Communications 168,949,805 1,536,482 0.91 99.09 BSkyB Ltd 104,769,013 9,832,258 9.38 90.62 L'Oreal Golden Ltd 103,712,826 171,439 0.17 99.83 DFS Furniture 93,461,848 0 0.00 100.00 Masterfoods 79,091,280 381,082 0.48 99.52 Orange Plc 77,778,373 5,842,074 7.51 92.49 BT Ltd 76,469,097 1,494,089 1.95 98.05 Nestle 68,510,585 283,873 0.41 99.59 Reckitt Benckiser Ltd 67,473,880 10,324 0.02 99.98 Vauxhall Motors Ltd 63,460,028 497,881 0.78 99.22 Tescos Plc 62,885,215 197,954 0.31 99.69 Ford Motor Company Ltd 62,807,418 867,839 1.38 98.62 Renault Uk Ltd 60,126,322 709,243 1.18 98.82 Kellogg Company 58,840,448 0 0.00 100.00 Lloyds TSB Plc 56,139,386 161,677 0.29 99.71 Sainsbury's 52,925,167 80,653 0.15 99.85 Vodafone Ltd 50,572,728 300,328 0.59 99.41 Capital One 48,016,538 7,317,270 15.24 84.76
  • 116. Source: NMR, Top 20 advertiser’s spend in 2005 UK TOP 20 ADVERTISERS Total spend Internet spend % spent online % spend on all other media Top 20 advertisers 1,757,128,753 30,683,912 1.75 98.25 Unilever UK Ltd 217,374,235 467,782 0.22 99.78 Procter & Gamble Ltd 183,764,561 531,664 0.29 99.71 COI Communications 168,949,805 1,536,482 0.91 99.09 BSkyB Ltd 104,769,013 9,832,258 9.38 90.62 L'Oreal Golden Ltd 103,712,826 171,439 0.17 99.83 DFS Furniture 93,461,848 0 0.00 100.00 Masterfoods 79,091,280 381,082 0.48 99.52 Orange Plc 77,778,373 5,842,074 7.51 92.49 BT Ltd 76,469,097 1,494,089 1.95 98.05 Nestle 68,510,585 283,873 0.41 99.59 Reckitt Benckiser Ltd 67,473,880 10,324 0.02 99.98 Vauxhall Motors Ltd 63,460,028 497,881 0.78 99.22 Tescos Plc 62,885,215 197,954 0.31 99.69 Ford Motor Company Ltd 62,807,418 867,839 1.38 98.62 Renault Uk Ltd 60,126,322 709,243 1.18 98.82 Kellogg Company 58,840,448 0 0.00 100.00 Lloyds TSB Plc 56,139,386 161,677 0.29 99.71 Sainsbury's 52,925,167 80,653 0.15 99.85 Vodafone Ltd 50,572,728 300,328 0.59 99.41 Capital One 48,016,538 7,317,270 15.24 84.76
  • 117. Source: NMR, Top 20 advertisers’ spend in 2005 TOP 20 ADVERTISERS SPEND BY MEDIA UK data 2005 TV 50 % Radio 6 % Outdoor 9 % Newspaper 13 % Magazines 8 % Direct mail 9 % Cinema 3 % Internet 2 %
  • 118. BUT There is ONE major problem afflicting traditional advertising…
  • 119.
  • 120. IN THE GOOD OLD DAYS… It was all about selling an image
  • 121. Then it all became about telling a story IN THE GOOD OLD DAYS…
  • 122. Then it all became about telling a story IN THE GOOD OLD DAYS…
  • 123.
  • 124.
  • 125. … Unless your story is very compelling to them or it has been promoted by a trusted third party consumer
  • 126. INSTEAD OF TELLING YOUR STORY…
  • 127. LET CONSUMERS TELL THEIRS!
  • 128. GIVE THEM A PLATFORM Coke was initially slow to react Do you know what can be done with a bottle of Diet Coke and a handful of Mentos ? These guys do!
  • 129. GIVE THEM A PLATFORM But has now wholeheartedly embraced the phenomenon
  • 130. Instead of TELLING A STORY … Create the TOOLS to allow a story to be told
  • 131. CO-CREATION THE NAME OF THE GAME
  • 132. Are not just about CONSUMPTION It’s as much about PARTICIPATION CONSUMERS…
  • 134. We’ve all heard about Generation X And then came Generation Y
  • 135. Now it is all about… GENERATION C
  • 139. Generation C changes the rules of consumption
  • 141. CURATED CONSUMPTION CURATED CONSUMPTION Josh
  • 143. DANGERS DANGERS Great reach… shame about the target market BIG AD
  • 144. How Can You Use Digital Marketing?
  • 145.
  • 146. CORPORATE TOUCHPOINTS Allowing companies to communicate with stakeholders 24/7
  • 147. CORPORATE TOUCHPOINTS Allowing companies to communicate with stakeholders 24/7
  • 148. PUBLIC SERVICES Allowing governments to communicate with citizens 24/7
  • 149. CROSS-MEDIA INTEGRATION “ Anders & Henriette” financial services webisode
  • 150. CONTENT EXTENSION Big Brother in Second Life
  • 151. Integrated clothing and technology PRODUCT DEVELOPMENT
  • 152. NEW PRODUCT DEVELOPMENT PRODUCT DEVELOPMENT
  • 154. PRODUCT DEVELOPMENT What will they think of next, eh?
  • 156. BRITISH AIRWAYS British Airways web site
  • 159. BRITISH AIRWAYS On Business – the business loyalty programme
  • 160. BRITISH AIRWAYS E-mail newsletters
  • 161. BRITISH AIRWAYS Banner advertising
  • 162. BRITISH AIRWAYS Content sponsorships
  • 163. BRITISH AIRWAYS B2B advertainment
  • 165. NIKE FOOTBALL Web sites and viral videos
  • 168. NIKE ID Customise and buy your own football boots
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  • 173.
  • 175. Traditional marketing view Traditional on- and off-line communication Traditional on- and off-line communication Below the line Above the line TTL TTL DIGITAL MARKETING BRAND DIGITAL MARKETING
  • 176. Marketing View Below the line Above the line CRM Digital New on- and off-line communication New on- and off-line communication BRAND DIGITAL MARKETING The new marketing view
  • 177.
  • 178. STRATEGIC DIRECTION The shortest way is not always the right way
  • 179. STRATEGIC CHOICES You may find your strategy changes along the way
  • 180. STRATEGIC PROCESS Constant goal setting, project planning and alignment
  • 181. Where, why and how search visit info action Information requested Buy online (direct/retailer) Buy in store Information sent SEO PPC Sponsorship Partner Viral Advertising Etc. Campaign Product Service Brand Company INTEGRATION A simplified explanation of the process from usage to purchase
  • 182. STRATEGY CONCEPT DESIGN PRODUCTION EXECUTION Channel independent Channel dependent THE DIGITAL PROCESS Similarities, differences and media agencies
  • 183.
  • 184. THE PAST Quaint… and ineffective
  • 185. To the point – and sole reason why! THE FUTURE › Everything that ’ s already in the world when you ’ re born is just normal. ‹ Douglas Adams, Author of The Hitchhiker's Guide to the Galaxy
  • 186. We help brands connect with their audiences! We help brands establish trust! We help brands interact with their customers!
  • 187.  
  • 188. Casper M ø ller CEO, T-Viral E: [email_address] T: +44 (0)20 7231 1320 42 Pump House Close London SE16 7HS United Kingdom I: www.t-viral.com