Web 2.0: a real marketing opportunity for startups?
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Final thesis presentation of Marie-Laure Cruyt, Solvay Brussels School, 2014
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Web 2.0: a real marketing opportunity for startups?
- 1. Web 2.0: a real marketing opportunity for startups? Marie-‐Laure Cruyt Director: Professor Jean-‐Pierre Baeyens Commissioner: Professor Philippe Bilitau Jury President: Professor Eric De Keuleneer 1
- 2. AGENDA The Web 2.0 context Web 2.0 opportunities for startups The limits of Web 2.0 opportunities Conclusion 2
- 3. THE THREE DIMENSIONS OF WEB 2.0 The Participative Web The Smart Web SOCIAL MEDIA MARKETING Online Communities The Social Web Search Engines Databases Reviews Wikis Folksonomies Blogs Social Networks SEARCH ENGINE MARKETING WEB ANALYTICS CONTEXT OPPORTUNITIES LIMITS CONCLUSION 3 WEB 2.0
- 4. THE LEAN METHODOLOGY ACCURATELY DEFINE MARKET CONSTANTLY TEST SOLUTION SCALE CONTEXT OPPORTUNITIES LIMITS CONCLUSION 4
- 5. Search Engine Marketing Target users according to their needs CONTEXT OPPORTUNITIES LIMITS CONCLUSION 5 WEB 2.0 INTRODUCES A PANEL OF COST-‐EFFECTIVE TARGETING TOOLS
- 6. WEB 2.0 INTRODUCES A PANEL OF COST-‐EFFECTIVE TARGETING TOOLS Search Engine Marketing Target users according to their needs CONTEXT OPPORTUNITIES LIMITS CONCLUSION 5
- 7. Search Engine Marketing Target users according to their needs Social Media Marketing Target users according to their interests and profiles CONTEXT OPPORTUNITIES LIMITS CONCLUSION 5 WEB 2.0 INTRODUCES A PANEL OF COST-‐EFFECTIVE TARGETING TOOLS
- 8. Search Engine Marketing Target users according to their needs Social Media Marketing Target users according to their interests and profiles CONTEXT OPPORTUNITIES LIMITS CONCLUSION 5 WEB 2.0 INTRODUCES A PANEL OF COST-‐EFFECTIVE TARGETING TOOLS
- 9. Search Engine Marketing Target users according to their needs Social Media Marketing Target users according to their interests and profiles Web Analytics Target users according to their behaviour CONTEXT OPPORTUNITIES LIMITS CONCLUSION 5 WEB 2.0 INTRODUCES A PANEL OF COST-‐EFFECTIVE TARGETING TOOLS
- 10. Search Engine Marketing Target users according to their needs Social Media Marketing Target users according to their interests and profiles Web Analytics Target users according to their behaviour Fine-‐tuned and engaging communication CONTEXT OPPORTUNITIES LIMITS CONCLUSION 5 WEB 2.0 INTRODUCES A PANEL OF COST-‐EFFECTIVE TARGETING TOOLS
- 11. Search Engine Marketing Test different messages and solutions CONTEXT OPPORTUNITIES LIMITS CONCLUSION 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 12. Search Engine Marketing Test different messages and solutions CONTEXT OPPORTUNITIES LIMITS CONCLUSION 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 13. Search Engine Marketing Test different messages and solutions Social Media Marketing Gather dynamic and honest feedback Co-‐create value CONTEXT OPPORTUNITIES LIMITS CONCLUSION 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 14. Gather dynamic and honest feedback Co-‐create value Search Engine Marketing Test different messages and solutions Social Media Marketing Number of votes CONTEXT OPPORTUNITIES LIMITS CONCLUSION 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 15. Gather dynamic and honest feedback Co-‐create value Search Engine Marketing Test different messages and solutions Social Media Marketing Web Analytics Test different lay-‐outs CONTEXT OPPORTUNITIES LIMITS CONCLUSION 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 16. Gather dynamic and honest feedback Co-‐create value Search Engine Marketing Test different messages and solutions Social Media Marketing Web Analytics Test different lay-‐outs Picture Button Text ... Picture Button Text VS. ... CONTEXT OPPORTUNITIES LIMITS CONCLUSION 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 17. OPPORTUNITIES LIMITS CONCLUSION Gather dynamic and honest feedback Co-‐create value CONTEXT Search Engine Marketing Test different messages and solutions Social Media Marketing Web Analytics Test different lay-‐outs Accelerated learning cycle and limited sunk costs 6 WEB 2.0 OFFERS A FLEXIBLE AND REACTIVE TESTING ENVIRONMENT
- 18. Search Engine Marketing Expose message to a global market CONTEXT OPPORTUNITIES LIMITS CONCLUSION 7 WEB 2.0 INTRODUCES UNPRECEDENTED GROWTH OPPORTUNITIES
- 19. Search Engine Marketing Expose message to a global market Social Media Marketing Spread content virally Amplify word-‐of-‐mouth CONTEXT OPPORTUNITIES LIMITS CONCLUSION 7 WEB 2.0 INTRODUCES UNPRECEDENTED GROWTH OPPORTUNITIES
- 20. Spread content virally Amplify word-‐of-‐mouth Search Engine Marketing Expose message to a global market Social Media Marketing Web Analytics Introduce Growth Hacking techniques CONTEXT OPPORTUNITIES LIMITS CONCLUSION 7 WEB 2.0 INTRODUCES UNPRECEDENTED GROWTH OPPORTUNITIES
- 21. Spread content virally Amplify word-‐of-‐mouth Search Engine Marketing Expose message to a global market Social Media Marketing Web Analytics Introduce Growth Hacking techniques CONTEXT OPPORTUNITIES LIMITS CONCLUSION 7 WEB 2.0 INTRODUCES UNPRECEDENTED GROWTH OPPORTUNITIES
- 22. OPPORTUNITIES LIMITS CONCLUSION Spread content virally Amplify word-‐of-‐mouth CONTEXT Search Engine Marketing Expose message to a global market Social Media Marketing Web Analytics Introduce Growth Hacking techniques Easier leap from early to mainstream market 7 WEB 2.0 INTRODUCES UNPRECEDENTED GROWTH OPPORTUNITIES
- 23. CONTEXT OPPORTUNITIES Search Engine Adverts • A few dollars only • Charged per click • No heavy upfront costs LIMITS CONCLUSION Blogs & Social Media profiles • Free of charge Analytics Solutions • Low-‐cost • User-‐friendly • Powerful Mitigation of the startup resource poverty 8 WEB 2.0 MARKETING OPPORTUNITIES COME AT A VERY AFFORDABLE PRICE
- 24. Share of global adspend per medium Other Zenith Optimedia; April 2014 CONTEXT OPPORTUNITIES LIMITS CONCLUSION 9 TRADITIONAL MEDIA APPEAR TO BE MORE EXPENSIVE Television Desktop Internet Print Advertising 40% 32% 18% 10%
- 25. CONTEXT OPPORTUNITIES Search Engine Adverts • Cost per click can be very high • Mistakes are costly LIMITS Blogs & Social Media profiles • Very time consuming CONCLUSION Analytics Solutions • Complex manipulation for granular insights • Expertise required Investment in adequate human resources required 10 WEB 2.0 MARKETING OPPORTUNITIES ARE PEOPLE-‐ INTENSIVE ACTIVITIES
- 26. VISIBILITY Small number of highly visible sites NUMBER OF SITES Large number of barely visible sites 11 CONTEXT OPPORTUNITIES LIMITS CONCLUSION SEARCH ENGINES FOLLOW A POWER LAW OF DISTRIBUTION Illustration of the power law of traffic distribution by Search Engines
- 27. SOCIAL MEDIA ARE SHIFTING TOWARDS PAID MEDIA 12 CONTEXT OPPORTUNITIES LIMITS CONCLUSION
- 28. SOCIAL MEDIA ARE SHIFTING TOWARDS PAID MEDIA Average organic reach of content published on Brand 14% 12% 10% 8% 6% 4% 2% 0% Facebook Pages Oct'13 Nov'13 Dec'13 Jan'14 Feb'14 Social@Ogilvy: February 2014 13 CONTEXT OPPORTUNITIES LIMITS CONCLUSION
- 29. MULTI-‐CHANNEL COMMUNICATION IS INEVITABLE Percentage of total marketing budget spent in digital marketing according to firm evolution Marketo May 2011 14 CONTEXT OPPORTUNITIES LIMITS CONCLUSION
- 30. IN A WORD Web 2.0: a real marketing opportunity for startups? YES, BUT... Niche domination strategy 15 CONTEXT OPPORTUNITIES LIMITS CONCLUSION Affordable Lean People-‐intensive Elitist
- 31. TOWARDS WEB 3.0 31 CONTEXT OPPORTUNITIES LIMITS CONCLUSION