Online Marketing Trends Guide


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Online Marketing Trends Guide

  1. 1. Implications of Web 2.0 Trends on Online Marketing Jong-Seo Kim 29 January 2008
  2. 2. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the media usage behavior? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 2
  3. 3. What has changed during the past decade? PAST TODAY Slow Internet connection Affordable high Internet (e.g. 56k) restricts usage speed (ADSL, cable, etc.) possibilities opens usage opportunities Access the Web from Access the Web from a anywhere and via various desktop PC tools (wireless, UMTS, etc.) Dynamic platforms through AJAX HTML Static websites as silos recently developed XML programming techniques CSS Mature Internet user Infant Internet user and all age groups using the Web © Pepper. a Computershare company 4
  4. 4. What is Web 2.0 all about? Web 2.0 is to a lesser extent about new technology creating greater Internet capabilities and enabling the goals of the end-users, but it is to a greater extent about how the Internet is being used by its users Social Web Technology as an enabler Rich Internet Service- Applications oriented (RIA) architecture + (SOA) • 100% user centric • Decentralization • Participatory culture • Encourages open communication • User has control over own data © Pepper. a Computershare company 5
  5. 5. Active participation online is strongly growing © Pepper. a Computershare company 6
  6. 6. How can participation in the Social Web look like? Connecting with other users and communicating with them in social networks CONNECTING CREATING COLLABORATING Generating user-generated content, Work together with other users to e.g. blogs, podcasts, etc. USER create collective knowledge and share it online COLLECTING AND SHARING Sharing user-generated content or content in general on the Web in online communities and also collecting content from others (tags, bookmarking) © Pepper. a Computershare company 7
  7. 7. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the media usage behavior? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 10
  8. 8. How is social media being used among the different age groups? The majority of social media users comes from the age group 18-44, this is especially valid in terms of active participation and creation of content (upload video/blog). 100% 6% 4% 4% 5% 6% 7% 9% 8% 18% 13% 20% 17% 80% 19% 21% 23% 24% 23% 60% 24% 24% 25% 40% 33% 28% 32% 31% 27% 24% 20% 22% 21% 21% 25% 16% 17% 0% Watch video Upload video Photo sharing Social Update a blog Read a blog networking 18-24 25-34 35-44 45-54 55-64 65+ Source: Global digital Living II, Parks Associates, 2007 © Pepper. a Computershare company 11
  9. 9. How is social media being used among genders? Except for watching and uploading videos, females use social media to a greater percentage than males, especially photo sharing is much more used by females. 100% 80% 48% 49% 53% 53% 55% 61% 60% 40% 52% 51% 47% 47% 20% 39% 45% 0% Watch video Upload video Photo sharing Social Update a blog Read a blog networking Male Female Source: Global digital Living II, Parks Associates, 2007 © Pepper. a Computershare company 12
  10. 10. How much time do consumers spent with different media? Younger consumers in the US spend more time on the Internet than they are watching TV. (in hours per Week) 15 14,3 13,5 12 12 11,8 10,7 11 9,8 9 8 7,4 6 4,8 3 0 Gen Y (18-26) Gen X (27-40) Younger boomers Older boomers Seniors (62+) (41-50) (51-61) Base: US households Watching TV Using the Internet Source: Forrester‘s NACTAS 2006 Benchmark Survey © Pepper. a Computershare company 13
  11. 11. How much time do consumers spent with different media? Broadband adoption drives up consumers‟ time online and at the same time decreases the time spent for other media. 5,5 Using the Internet 6,1 7,4 7,9 Listening to the radio 7,3 7,1 13,1 Watching TV 12,8 12,7 (in hours per week) 0 3 6 9 12 15 Base: US households 2006 2005 2004 Source: Forrester‘s NACTAS 2004-2006 Benchmark Survey © Pepper. a Computershare company 14
  12. 12. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the media usage behavior? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 15
  13. 13. How did Marketing on the Web look in the past? Marketing on the Web in the past was a top-down approach from the brand to the consumer, the same as offline: Consumers were communicated through communication channels with a message from the company and the outcome was a response from a limited amount of consumers that received the message. Consumers have become more Consumers reluctant to plain advertising, preferring the “neutral” opinion of their peers: “…the “person like yourself or your peer” is seen as the most credible spokesperson about a company and Communication among the top three spokespeople in message from every country surveyed.” the organization (Source: Edelman Trust Barometer 2006) “80% of consumers trust word of mouth more than any other source“ Response (Source: © Pepper. a Computershare company 17
  14. 14. How does Marketing on the Web look now? Marketing on the Web today is influenced through the fact that consumers are talking and listening to each other and exchanging information through various tools, the idea of push- marketing is no longer effective in this highly-connected marketplace Consumers Consumers Message Consumers are talking and listening to each other © Pepper. a Computershare company 18
  15. 15. What is the situation that the paradigm shift creates for a company and its brand? • Ease of access to social • Content/communication • Consumers online add media has democratized from companies is an their own content, the market invitation for which makes consumers to engage communication once • Customers have more with the brand coming from the brand abilities to talk back, “take a life of its criticize, share stories • It is no longer just a own” and opinions simple top-down communication approach • As an example a • Customers value from the company to the website such as information about brands consumer Youtube features more from other trusted hundreds of videos customers online than on brands or from billboards or glossy products directly collaterals created by users independent from © Pepper. a Computershare company the company 20
  16. 16. How can companies react to the online developments? Social Media demands that brands loose some control, but at the same time opens the opportunity to gain influence through contributing to the online conversation. Monitor what 1 is happening around your brand online 4 Leverage conversation 2 with customer community for your Brand Engage in transparent and authentic benefits conversation Give target groups 3 tools to share their message © Pepper. a Computershare company 21
  17. 17. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the online behavior of users? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 26
  18. 18. How can the Web 2.0 trends act as customer touchpoints for companies? interaction conversation Customers contributions Company Web 2.0 is characterized through much stronger interaction, which creates an open conversation between customers themselves and between customers and company Platforms support interaction and conversation between customers and the company; social networks, blogs, virtual worlds, RSS, podcasts, etc. serve as strongly growing online touchpoints © Pepper. a Computershare company 27
  19. 19. What are popular online customer touchpoints? Touchpoint Description Example Provide commentary or news on a particular subject combining text, images, Blogs and links to other blogs, websites and other media related to its topic Media sharing Platforms that give users the possibility to share media content such as networks photos and videos (e.g. Youtube for videos and Flickr for photos) Information Platforms that give users the possibility to share text-based content (in sharing networks contrast to media sharing networks) Support communication and identify community structures, mostly with focus Social networks on a specific target group (e.g. students, professionals, etc.) Distinguishes itself through its ability to be syndicated, subscribed to, and Podcasts downloaded automatically (e.g. through RSS) Makes it possible to be informed with frequently updated content (e.g. blogs, RSS feeds podcasts) in an automated manner, which is easier than checking manually Interact online (socialize, participate in activities, create and trade items, Virtual worlds etc.) with others through an advanced level of a social network service © Pepper. a Computershare company 28
  20. 20. What impact do the new touchpoints have on the communication habits of people? Blogs Communities Podcasts Wikis + Mass of new touchpoints ―live‖ from interaction of Traditional media have a stronger penetration in terms people and provide more in-depth information of reach, but offer low possibility of interaction for The penetration disadvantage is overcome by search people and are rather controlled by the producers engines and innovative mechanisms (e.g. tagging) The Long Tail phenomenon describes the importance of niche media touchpoints through user participation © Pepper. a Computershare company 29
  21. 21. Characterization of online customer touchpoints Online customer touchpoints will be characterized through five criteria: Number of Internet users that can be reached with the customer touchpoint Reach Ability of the customer Level of control the 5 touchpoint to further company can maintain 4 spread the message to over its message through 3 other online customer the customer touchpoint 2 touchpoints Control Spread 1 0 Level of interaction that All costs incurring can be generated through the through the Interaction Costs usage/presence of the usage/presence of the customer touchpoint customer touchpoint © Pepper. a Computershare company 30
  22. 22. Touchpoint: Social networks • MySpace has more than 100 million members, Reach Facebook follows with approx. 50 million 5 members; in total social networks reach 4 approx. 40% of all Internet users 3 • 68% of social networkers use photo sharing 2 sites, 80% read blogs Control Spread 1 • Spread of message is mostly limited on network 0 platform • Having a presence on a social network requires low investment, placing ads on popular networks is expensive (in 2006 MySpace alone Interaction Costs accumulated USD 180 million in ad spends) • Strong interaction with members of network Costs: Higher rating indicates low costs, lower rating indicates higher costs • Control over own presence is given, but no control on member communication • The possibilities for companies vary depending on the network, e. g. Facebook has opened its site to third-party applications, which gave marketers and companies a viral and effective means of promoting their website to the Facebook audience. • Amazon launched an application called ‗book reviews‘ on Facebook, which allows members to publish book reviews on their profile linking to the book on amazon as well as finding other members who have read the same book and what else they were interested in © Pepper. a Computershare company 33
  23. 23. How can these online touchpoints be used to generate knowledge about consumers? (I) It is possible to build a customer interest profile over time based on the online actions of the consumer, which can serve as an enrichment of the existing demographics and CRM data. • The information gathered can be used to develop a 360 degree view of the customers • All activities are combined in an interest profile that builds over time, including online data, CRM data (e.g. participation in customer loyalty programs) and attitudinal data (e.g. surveys) • Online data enables to identify customers‘ interest in real-time • Drivers of intent such as recency and frequency can be used to drive targeted marketing campaigns © Pepper. a Computershare company 39
  24. 24. How can these online touchpoints be used to generate knowledge about consumers? (II) An analysis of these customer profiles easily enables to view website visitors with similar interests and create targeted segments based on their interest profiles. All customers All customers interested in interested in SUV sedans get an get an email with a email with link to a video information on about recent model performance and changes innovation in that vehicle segment Response of customers is added to their profile and together with other elements reveals a measure of engagement, which enables to extract the desirable audience with high interest in products © Pepper. a Computershare company 40
  25. 25. How can these online touchpoints be used to generate knowledge about consumers? (III) These engagement figures help a company to make a decision on which customers they should invest further and to which ones they should not. • With the profile information it is easier to invest in an expensive glossy brochure knowing it will reach people who have clearly indicated their interest • At the same time it is a reward for a customer who is currently looking to purchase a new SUV • It is also possible to contact the local car dealer to ask him contact the customer and offer him a test drive © Pepper. a Computershare company 41
  26. 26. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the online behavior of users? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 42
  27. 27. Case study: Kryptonite and the power of the Web In 2004 the reputation of the American lock manufacturer Kryptonite suffered heavily through their late response on dealing with negative consumer references online One of the triggers was a video published on Youtube showing how simply Kryptonite locks can be opened by using a ballpoint pen © Pepper. a Computershare company 43
  28. 28. Case study: Kettle Foods engaging the consumer (I) After having engaged in a conversation with their most passionate customers, Kettle decided to reward all of their fans for their information and feedback. People‟s choice 2005 People‟s choice 2007 • Kettle established the people‘s choice awards giving the consumers the possibility to nominate the flavors to be created and afterwards decide which flavors would make it to the shelf • Defining the Kettle brand was now fully in the hands of the consumer • Kettle was willing to take this leap of faith, which was a much better reward for the fans of the brand compared to a free voucher or other sorts of discounts © Pepper. a Computershare company 44
  29. 29. Case study: Kettle Foods engaging the consumer (III) In order to retain their customers Kettle created a platform for exchange and established a regular scheduled mix of programs on their website that consumers could look forward to. • The ―Kettle neighborhood‖ contained fun and interesting content through running contests that encouraged interaction and creativity • This created an environment for Kettle customers that was about more than just a potato snack, but directly appealing to the consumers‘ lifestyles • As a result of creating this interactive environment consumers even started to create their own language and Kettle responded to it by capturing this culture online through a Kettle dictionary © Pepper. a Computershare company 46
  30. 30. Case study: Stormhoek Winery, South Africa (I) A small South African winery used the blogosphere and online social networks as a marketing tool to stand out in a sea of look-alike competitors. The results was an increase in awareness and sales Many recipients mentioned the wine Stormhoek offered a free wine in their blogs and drew attention to bottle to any blogger (if of legal the brand on the Web and also drinking age and has blogged for increased Stormhoek‘s hit rate on at least 3 months) search engines Results: • Sales increase from 50,000 cases a year to 300,000 cases a year Stormhoek organized more than • Real-time feedback from customers 100 ―geek‖ dinners around the • Supermarkets and wine stores give valuable shelf globe gathering tech workers and space to Stormhoek influential bloggers Stormhoek campaign spends totaled only USD 40k © Pepper. a Computershare company 51
  31. 31. Case study: Stormhoek Winery, South Africa (II) • Unusual appearance for a winery‘s website • Strong participation in social networks (facebook, flickr, youtube, blogs) • Offers RSS feeds and even created an own ―Stormhoek‖ sound • Visitors are able to post on the winery‘s website and have conversations with other visitors © Pepper. a Computershare company 52
  32. 32. How do the new online touchpoints work together with the traditional ones? New online Traditional touchpoints media • New online touchpoints are not an substitute for traditional media, but rather an enhancement for better exposure online and therefore a greater reach • A company needs to understand how and where the target audience want to consume information and then develop a coordinated integrated campaign with all touchpoints working together © Pepper. a Computershare company 54
  33. 33. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the online behavior of users? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 55
  34. 34. Visual shopping search engine Users can narrow searches by focusing on a specific part of the product and the color, shape and pattern as well as price range makes use of automated picture recognition technology and identifies items in several shops similar to the one the user has chosen © Pepper. a Computershare company 56
  35. 35. ChaCha: Search engine • ChaCha differentiates itself from other search engines through providing real-time search help from guides • Guides have profiles, featuring their areas of expertise and most recent answers. They're also rated by users • The promise of people answering search queries will likely bring out qualitative and opinion-based questions © Pepper. a Computershare company 57
  36. 36. Agenda 1. What is Web 2.0? 2. What is the impact of Web 2.0 on the online behavior of users? 3. How are Web 2.0 trends impacting online marketing? 4. How can Web 2.0 trends be used as new touchpoints? 5. Case studies 6. Innovative ideas on the Web 7. Glossary © Pepper. a Computershare company 60
  37. 37. Glossary index • AJAX • Second Life • Blog • Service-oriented Architecture • Crowdsourcing • Social Media • Consumer Generated Media • Search Engine Optimization • Folksonomy • Tag • The Long Tail • Tag cloud • Marketing 2.0 • VoIP • Mashup • Web 2.0 • Micro-blogging • Webcast • Podcast • Web Feed • Rich Internet Applications • Widget • RSS (Really Simple Syndication) • Wiki • Search Engine Marketing (SEM) © Pepper. a Computershare company 61
  38. 38. Glossary: AJAX AJAX (short for Asynchronous JavaScript and XML): AJAX, is a web development technique used for creating interactive web applications. The intent is to make web pages feel more responsive by exchanging small amounts of data with the server behind the scenes, so that the entire web page does not have to be reloaded each time the user requests a change. This is intended to increase the web page's interactivity, speed, functionality, and usability. Ajax creates the necessary initial conditions for the evolution of complex, intuitive, dynamic, data-centric user interfaces in web pages (see also SOA and RIA)— and therefore served as one of the main technological drivers within the Web 2.0 development Example for AJAX usage is Google maps – the ability to navigate around a map without refreshing the page Ajax web pages can appear to load relatively quickly since the payload coming down is much smaller in size, and the rest of the layout does not have to be redrawn on each update. An example of this technique is a large result set where multiple pages of data exist. Marketing benefits: AJAX can simplify features like product zoom and enlargement, or shopping cart additions. Back to previous slide © Pepper. a Computershare company 62
  39. 39. Glossary: Blog Blog (short form for „web log‟): A blog is a website where entries are written in chronological order and commonly displayed in reverse chronological order. Blogs provide commentary or news on a particular subject such as food, politics, or local news; some function as more personal online diaries. A typical blog combines text, images, and links to other blogs, web pages, and other media related to its topic. The ability for readers to leave comments in an interactive format is an important part of Boing Boing is a weblog of many blogs. Most blogs are primarily textual, although some focus on photographs (e.g. cultural curiosities and Flickr,, videos (vlogging: e.g. YouTube,, music (MP3 interesting technologies. It's the most popular blog in the world, blog) or audio (podcasting) and are part of a wider network of social media. as ranked by, and won the Lifetime In May 2007, blog search engine Technorati ( was tracking more Achievement and Best Group than 71 million blogs. Blog awards at the 2006 Bloggies ceremony. Blogs are successful because there is no technical knowledge required, it is easy to update and new technologies allow easy content sharing and searching. Marketing benefits: Corporate blogs allow companies to quickly get information out to customers. Blogs give companies many tools of interaction, such as commenting and trackbacks. By setting up a company blog, a company declares their company is open to conducting an online dialogue between bloggers. If a company can run a successful blogging operation, a company can gain links and the opportunity to have a dialogue with many other blog readers from the bloggers who write and refer to a company blog Back to previous post. slide © Pepper. a Computershare company 63
  40. 40. Glossary: Crowdsourcing Crowdsourcing: Crowdsourcing is a term for the act of taking a job traditionally performed by an employee or contractor, and outsourcing it to an undefined, generally large group of people, in the form of an open call. The idea of crowdsourcing can bring customers into the product design process. For online products, companies can let users test prototypes and beta versions, and make adjustments based on the feedback. The conversation between users and developers will get better products on the market faster. It means getting access to millions of ‗brains‘ around the globe without having to employ them. Successful examples of crowdsourcing are: • Procter & Gamble posts problems on a website called InnoCentive, offering large cash rewards to more than 90,000 "solvers" who make up this network of backyard scientists. • In 2006, the American online DVD rental company Netflix announced that they were offering a $1,000,000 prize for anybody who could improve their existing DVD rating system by at least 10%. Contest participants can download vast amounts of anonymous data from Netflix to test their proposals. In addition to the big prize Netflix are offering annual progress prizes of $50,000. So far 17,000 attempts have been submitted; the best showing an improvement of 8.26% Back to previous over Netflix‘s current system. slide © Pepper. a Computershare company 64
  41. 41. Glossary: Consumer Generated Media (CGM) Consumer Generated Media (CGM): Consumer generated media are various kinds of media content that are produced by end-users, (as opposed to traditional media producers such as professional writers, publishers, journalists, licensed broadcasters and production companies). List of citizen marketers Originated as a reference to posts made by consumers within online venues such as and their websites: internet forums, blogs, wikis, discussion lists etc., on products that they have purchased. Shoppers who are researching products often use other consumers' http://www.creatingcusto opinions when making buying decisions. The term has evolved to include video, audio and multimedia posts created by xamples.asp consumers in support (or negative parody/in-protest) of products, brands and corporate institutions. Often CGM is partially or totally monitored by website administrators to avoid offensive content or language, copyright infringement issues, or simply to determine if the content posted is relevant to the site's general theme. Marketing aspect: There are several examples that consumer-generated media has at least as much power as corporate communications. Examples include Jeff Jarvis' unofficial blog campaign about his "Dell Hell" experience and the independent iPod fan site iLounge. Back to previous slide © Pepper. a Computershare company 65
  42. 42. Glossary: Folksonomy Folksonomy: A folksonomy is the practice and method of collaborative categorization using freely-chosen keywords called tags. Folksonomies are commonly used to classify and retrieve web content such as Web pages, photographs and Web links. Folksonomic tagging is intended to make a body of information increasingly easy to search, discover, and navigate over time. A well-developed folksonomy is ideally accessible as a shared vocabulary that is both originated by, and familiar to, its primary users. Two widely cited examples of websites using folksonomic tagging are Flickr and As folksonomies develop in Internet-mediated social environments, users can discover (generally) who created a given folksonomy tag, and see the other tags that this person created. In this way, folksonomy users often discover the tag sets of another user who tends to interpret and tag content in a way that makes sense to them. The result is often an immediate and rewarding gain in the user's capacity to find related content. Marketing effect: People with similar methods of classifying things may act to reinforce each others biases and pre-existing viewpoints. Folksonomies are routinely generated by people who may have spent a great deal of time interacting with the content they tag. This level of interaction has the ability to Back to influence the information flow or interests of readers. previous slide © Pepper. a Computershare company 66
  43. 43. Glossary: Long Tail, The The Long Tail: The phrase The Long Tail describes certain business and economic models such as or Netflix. Businesses with distribution power can sell a greater volume of otherwise hard to find items at small volumes than of popular items at large volumes. It is argued that products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, if the store or distribution channel is large enough. An analysis of Amazon sales found out that a large proportion of's book sales come from books that are not available in brick-and-mortar stores. The Long Tail is a potential market and the distribution and sales channel opportunities created by the Internet often enable businesses to tap into that market successfully. The Long Tail also has implications for the producers of content, especially those whose products could not - for economic reasons - find a place in pre-Internet information distribution channels controlled by book publishers, record companies, movie studios, and television networks. Small sites make up the bulk of the Back to Internet‘s content. previous slide © Pepper. a Computershare company 67
  44. 44. Glossary: Marketing 2.0 Marketing 2.0: Marketing 2.0 is a natural outgrowth of Web 2.0 as it refers to the transformation of marketing resulting from the network effect of the Internet. Marketing 2.0 represents a shift in marketing to account for customers researching and buying goods and services independent of advertising and marketing campaigns and messages. With broadband as the new utility in the household and at work, customers now make decisions on their own terms, relying - in seconds - on friends, family, colleagues, and other trusted networks to form opinions. Marketing 2.0 is about turning Where traditional advertising and marketing is based on key messages and transactions into interactions and support points in an attempt to force a purchase decision, Marketing 2.0 is interruptions into integrations. based on authentic, real content used to fuel conversations and purchase decisions in a manner that allows the customer to draw their own conclusions. Traditional media may be used in Marketing 2.0 - online and offline - but media is used to talk about content, not brand or product positioning. "Creative concepts" are left behind in favor of "content concepts.― This shift has implications on how marketing gets created; it means relying on a different process, skills, and set of deliverables in order to brand, engage, and sell to customers. The process puts content front and center as the means to engage the market. Required skills now include editorial, documentary, gaming, and other content-related capabilities. Promoting the content may also Back to previous include participating in social networks in a fully disclosed, credible fashion. slide © Pepper. a Computershare company 68
  45. 45. Glossary: Mashup Mashup: A mashup is a web application that combines data from more than one source into an integrated experience. The etymology of this term derives from its similar use in pop music, possibly from the hip-hop music practice of mixing two or more songs. Mashups has similarities to SOA through its purpose of sharing data from different sources, but is based on a different technology. Back to previous slide © Pepper. a Computershare company 69
  46. 46. Glossary: Micro-blogging Micro-blogging: Micro-blogging is a form of blogging that allows users to write brief text updates (usually less than 200 characters) and publish them, either to be viewed by anyone or by a restricted group which can be chosen by the user. These messages can be submitted by a variety of means, including text messaging, instant messaging, email, MP3 or the web. It is often possible to subscribe to such blogs using a web feed such as RSS. The most popular service is the awarded blog site called Twitter, which was launched in July 2006. The main competitor to Twitter is Jaiku. Screenshot The purpose is to allow people to keep in touch, or just give some news to friends or associates, without getting to heavily involved in a conversation, or writing a blog entry or email. It provides one place, to update people in a quick short burst. Marketing benefit: Micro-blogging can be well used for affiliate marketing purposes. Micro-blogging platforms give people a means to better get the word out about their blog, but also communicate beyond just their entries, and creating a shared experience with their ―colleagues.‖ Once people build a network of readers, and fellow bloggers, it is possible to start asking questions, gather information, and just get involved in the Screenshot conversation to get some ideas and fuel for their blog. Back to previous slide © Pepper. a Computershare company 70
  47. 47. Glossary: Podcast Podcast: A podcast is a digital media file (either only audio or video with audio), or a series of such files, that is distributed over the Internet using syndication feeds for playback on portable media players and computers. A podcast is a specific type of webcast which, like 'radio', can mean either the content itself or the method by which it is syndicated; the latter is also termed podcasting. The term "podcast" is a portmanteau of the name of Symbol for podcasts Apple's portable music player, the iPod, and broadcast; a "pod" refers to the iPod, and "cast" to the idea of broadcasting. Specifically, Podcast means, Portable OnDemand broadCAST. Though podcasters' web sites may also offer direct download or streaming of their content, a podcast is distinguished from other digital media formats by its ability to be syndicated, subscribed to, and downloaded automatically, using an aggregator or feed reader capable of reading feed formats such as RSS. In March 2006 it was reported that 80% of podcast "episodes" are "consumed" on the PC onto which they are downloaded i.e. they are never actually transferred to an iPod or other portable player. iTunes podcast store on Usage possibilities of podcasts for businesses are seminar recordings, interactive element in e-newsletters, in-house training tutorials, online PR Back to and demonstrations. previous slide © Pepper. a Computershare company 71
  48. 48. Glossary: Rich Internet Applications (RIA) Rich Internet Application (RIA): Rich Internet applications (RIA) are Web applications that have the features and functionality of traditional desktop applications. RIAs typically transfer the processing necessary for the user interface to the Web client but keep the bulk of the data (i.e., maintaining the state of the program, the data etc) back on the application server. Because RIAs employ a client engine to interact with the user, they are: • Richer. They can offer user-interface behaviors not obtainable using only the HTML widgets available to standard browser-based Web applications. • More responsive. The interface behaviors are typically much more responsive than those of a standard Web browser that must always interact with a remote server. The most sophisticated examples of RIAs exhibit a look and feel approaching that of a desktop environment and therefore represents the evolution of the browser from a static request-response interface to a dynamic interface. Using a client engine can also produce other performance benefits: • Asynchronous communication. The client engine can interact with the server asynchronously -- that is, without waiting for the user to perform an interface action like clicking on a button or link. This option allows RIA designers to move data between the client and the server without making the user wait (e.g. Google Maps) Back to previous slide © Pepper. a Computershare company 72
  49. 49. Glossary: RSS RSS (Really Simple Syndication): RSS is a family of web feed formats used to publish frequently updated content such as blog entries, news headlines or podcasts. An RSS document, which is called a "feed", Symbol for RSS feeds "web feed", or "channel", contains either a summary of content from an associated web site or the full text. RSS makes it possible for people to keep up with their favorite web sites in an automated manner that's easier than checking them manually. An RSS feed reader (e.g. Newsgator, Feed Demon) is required to subscribe to RSS feed. Internet Explorer 7 features a browser-integrated RSS feed reader. Popular RSS feed readers are Feed Demon and Newsgator Marketing benefits: For retailers, it provides advantages through being an instantaneous, automated, inexpensive way to message to consumers by providing the benefits of email – notice of sales, price changes, new arrivals, trends and scarce inventory – without its drawbacks – irrelevant messages, inappropriate segmentation, and spam (e.g. Amazon is using RSS to announce their bestsellers and to help their users keep track of releases they are most interested in). According to a study by MarketingSherpa 40% of marketers did definitely plan on investing in adding RSS feeds to their marketing mix in 2006, while 19% planned to spend more than a year out. Almost non-existent until the middle of 2005, RSS advertising generated USD 650k in 2006 and is projected to gro to USD 129.6 million in 2010. Back to previous slide © Pepper. a Computershare company 73
  50. 50. Glossary: Search Engine Marketing (SEM) Search Engine Marketing (SEM): Search Engine Marketing is a form of Internet Marketing that seeks to promote websites by increasing their visibility in the Search Engine results pages (SERPs) and has a proven ROI (Return on Investment). SEM methods include: Example of Google Adwords • Search Engine Optimization (or SEO) • Paid placement: A pay per click model, meaning advertisers only pay when a user actually clicks on an ad to visit the advertiser's website. Advertisers bid on keywords they believe their target market would type in the search bar. These ads are called a "Sponsored link" or "sponsored ads" and appear next to, and sometimes, above the natural or organic results on search engine results pages. • Paid inclusion: The search engine company charges fees related to inclusion of websites in their search index. In 2006, North American advertisers spent US$9.4 billion on search engine marketing, a 62% increase over the prior year and a 750% increase over the 2002 year. The largest SEM vendors are Google AdWords, Yahoo! Search Marketing, and MSN adCenter. Depending on the search engine, minimum prices per click start at US$0.01 (up to US$0.50). Very popular search terms Back to can cost much more on popular engines. previous slide © Pepper. a Computershare company 74
  51. 51. Glossary: Second Life Second Life: Second Life is an Internet-based virtual world launched in 2003, developed by Linden Research, Inc. A downloadable client program called the Second Life Viewer enables its users, called "Residents", to interact with each other through motional avatars, providing an advanced level of a social network service. Residents can explore, meet other Residents, socialize, participate in individual and group activities, create and trade items and services from one another. In all, more than 8.9 million accounts have been registered, although many are inactive, some Residents have multiple accounts, and there are no reliable figures for actual long term consistent usage. Marketing aspects: Multiple companies have established a second life presence for branding purposes (IBM, BMW, Sony, Toyota, Adidas, etc.) and using as a forum for explaining complex products and services. Reuters has opened up a news service devoted to the virtual world and Calvin Klein is launching a fragrance (ck IN2U), despite the fact that a virtual world is a scentless environment. Second Life allows visitors to interact in real-time using many different media at once. Companies can also use Second Life as a testing ground for prototypes and Back to customer focus groups. previous slide © Pepper. a Computershare company 75
  52. 52. Glossary: Service-oriented Architecture (SOA) Service-oriented architecture (SOA): Service Oriented Architecture (SOA) is an evolution of distributed computing and modular programming. A flexible, standardized architecture is required to better support the connection of various applications and the sharing of data as being done in the Web 2.0 era. SOA is one such architecture. It unifies business processes by structuring large applications as an ad-hoc collection of smaller modules called services. In a SOA environment, resources on a network are made available as independent services that can be accessed without knowledge of their underlying platform implementation, therefore simplifying the usage for the user. SOA has similarities to mashups through its purpose of sharing data from different sources, but is based on a different technology. Back to previous slide © Pepper. a Computershare company 76
  53. 53. Glossary: Social Bookmarking Social Bookmarking: Popular Social Bookmarking websites (click on symbol to connect to website): Social bookmarking is a way for Internet users to store, organize, share and search bookmarks of web pages online to access them from every computer. In a social bookmarking system, users save links to web pages that they want to remember and/or share. Most social bookmark services encourage users to organize their bookmarks with informal tags instead of the traditional browser-based system of folders, although some services feature categories/folders or a combination of folders and tags. They also enable viewing bookmarks associated with a chosen tag, and include information about the number of users who have bookmarked them. Some social bookmarking services also draw inferences from the relationship of tags to create clusters of tags or bookmarks. Many social bookmarking services provide web feeds for their lists of bookmarks, including lists organized by tags. This allows subscribers to become aware of new bookmarks as they are saved, shared, and tagged by other users. As people bookmark resources that they find useful, resources that are of more use are bookmarked by more users. Thus, such a system will "rank" a resource based on its perceived utility. This is arguably a more useful metric for end users than other systems which rank resources based on the number Back to of external links pointing to it. previous slide © Pepper. a Computershare company 77
  54. 54. Glossary: Social Media Social Media: Social media examples (click on symbol to connect to website): Social media describes the online technologies and practices that people use to share content, opinions, insights, experiences, perspectives, and Wikis: media themselves. Social media enable shared community experiences, both online and in person. Social media can take many different forms, including text, images, audio, and video. The social media sites typically use tools like message boards, Social networking: forums, podcasts, bookmarks, communities, wikis, blogs etc. Video sharing: Virtual reality: Photo sharing: Social bookmarking: Back to previous slide © Pepper. a Computershare company 78
  55. 55. Glossary: Search Engine Optimization (SEO) Search Engine Optimization (SEO): Search engine optimization (SEO), a form of search engine marketing (SEM), is the process of improving the volume and quality of traffic to a web site from search engines via "natural" ("organic" or "algorithmic") search results. Usually, the earlier a site is presented in the search results, or the higher it "ranks", the more searchers will visit that site. SEO can also target different kinds of search, including image search, local search, and industry- specific vertical search engines. As a marketing strategy for increasing a site's relevance, SEO considers how search algorithms work and what people search for. SEO efforts may involve a site's coding, presentation, and structure. Search engines consider a wide range of undisclosed factors for their ranking algorithms. Google says it ranks sites using more than 200 different signals. The three leading search engines, Google, Yahoo and Microsoft's Live Search, do not disclose the algorithms they use to rank pages. Back to previous slide © Pepper. a Computershare company 79
  56. 56. Glossary: Tag Tag: A tag is a (relevant) keyword or term associated with or assigned to a piece of information (e.g. a picture, article, or video clip), thus describing the item and enabling keyword- based classification of information. Tags are usually chosen informally and personally by the author/creator or the consumer of the item. Tags are typically used for resources such as computer files, web pages, digital images, and internet bookmarks. For this reason, "tagging" has become associated with the Web 2.0 buzz. Tag classification, and the concept of connecting sets of tags between web/blog servers, has led to the rise of Popular tagging site folksonomy classification over the internet, the concept of social bookmarking, and other forms of social software. Although "tagging" is often promoted as an alternative to organization by a hierarchy of categories, more and more online resources seem to use a hybrid system, where items are organized into broad categories, with finer classification distinctions being made by the use of tags. Back to previous slide © Pepper. a Computershare company 80
  57. 57. Glossary: Tag Cloud Tag Cloud: A tag cloud (or weighted list in visual design) is a visual depiction of content tags used on a website. Typical tag clouds have between 30 and 150 tags. Often, more frequently used tags are depicted in a larger font or otherwise emphasized, while the displayed order is generally alphabetical. Thus both finding a tag by alphabet and by popularity is possible. Selecting a single tag within a tag cloud will generally lead to a collection of items that are associated with that tag. Tag clouds have been popularised by and Technorati, among others. Marketing benefits: Tag clouds are a powerful navigation mechanism because they can convey more information than other mechanisms as they add another dimension. Since tag clouds reflect the interest of the users it also helps to Examples of tag clouds monitor community trends. Back to previous slide © Pepper. a Computershare company 81
  58. 58. Glossary: VoIP VoIP (short form for „Voice over Internet Protocol‟): VoIP is the routing of voice conversations over the Internet or through any other IP-based network. VoIP is location independent, only an internet connection is needed to get a connection to a VoIP provider; for instance call centre agents using VoIP phones can work from anywhere with a sufficiently fast and stable Internet connection. VoIP phones can integrate with other services available over the Internet, including video conversation, message or data file exchange in parallel with the conversation, audio conferencing, managing address books and passing information about whether others (e.g. friends or colleagues) are available online to interested parties. Marketing benefits: VoIP allows consumers to connect directly from a Website to a phone conversation, which can immediately help address Fig.: Overview of how VoIP works consumer buying concerns, encourage up sells, and increase conversion from Website visitors. Very useful for high-touch, high-consideration purchases, or ones where buyer and seller are not that familiar with each other (e.g. argument when eBay acquired VoIP leader Skype, Back to previous slide © Pepper. a Computershare company 82
  59. 59. Glossary: Web 2.0 Web 2.0: The phrase Web 2.0 refers to a perceived second generation of web- based communities and hosted services — such as social-networking sites, wikis and folksonomies — which aim to facilitate collaboration and sharing between users. Although the term suggests a new version of the World Wide Web, it does not refer to an update to Web technical specifications, but to changes in the ways software developers and end-users use the web as a platform. All kinds of websites fuse together, which means that you can see pieces of sites on other sites. It is also referred to as a social phenomenon embracing an approach to generating and distributing Web content itself (user generated content), characterized by open communication, decentralization of authority, freedom to share and re-use, and "the market as a conversation―. The trend moves from a consumer economy to a participant economy (―social web‖). The most "Web 2.0"-oriented applications, which could only exist on the Internet, deriving their power from the human connections and network effects that Web 2.0 makes possible, and growing in Directory of Web 2.0 websites ( effectiveness the more people use them (eBay, Wikipedia,, Back to Skype). previous slide © Pepper. a Computershare company 83
  60. 60. Glossary: Webcast Webcast: A webcast is a live media file distributed over the Internet using streaming media technology. Essentially, webcasting is broadcasting over the Internet. The largest "webcasters" include existing radio and TV stations who "simulcast" their output, as well as a multitude of Internet only "stations". The term webcasting is usually reserved for referring to non-interactive linear streams or live events. The ability to webcast using cheap/accessible technology has allowed independent media to flourish. There are many notable independent shows that broadcast regularly online. Often produced by average citizens in their homes they cover many interests and topics; from the mundane to the bizarre. Webcasts relating to computers, technology, and news are particularly popular and many new shows are added regularly. This supports the Long Tail theory within the Web 2.0 movement. Back to previous slide © Pepper. a Computershare company 84
  61. 61. Glossary: Web Feed Web Feed: A web feed (e.g. RSS feeds) is a data format used for serving users frequently updated content. Content distributors syndicate a web feed, thereby allowing users to subscribe to it. Making a collection of web feeds accessible in one spot is known as aggregation, which is performed by an Internet aggregator. In the typical scenario of using web feeds, a content provider publishes a feed link on their site, which end users can register with an aggregator program (also called a feed reader or a news reader*) running on their own machines; doing this is usually as simple as dragging the link from the web browser to the aggregator. When instructed, the aggregator asks all the servers in its feed list if they have new content; if so, the aggregator either makes a note of the new content or downloads it. The kinds of content delivered by a web feed are typically HTML (webpage content) or links to websites and other kinds of digital media. Aggregators with podcasting capabilities can automatically download media files. Web feeds have some advantages compared to receiving frequently published content via email: • When subscribing to a feed, users do not disclose their email address, so users are not increasing their exposure to threats associated with email: spam, viruses, phishing, and identity theft. • If users want to stop receiving news, they do not have to send an "unsubscribe" request; users can simply remove the feed from their aggregator. * Feed readers are built into the new versions of web browsers like Internet Explorer or Firefox; one of the most popular web-based feed readers is bloglines (; there are also desktop feed Back to readers such as feed demon ( previous slide © Pepper. a Computershare company 85
  62. 62. Glossary: Widget Widget: A widget is a portable chunk of code that can be installed and executed within any separate html-based web page. A widget can be created for just about every site or service possible thus allowing Examples for widgets users to pull it into personalized homepages, blogs or other social website pages. Widgets are a way for a site or service to creatively offer products, services or news without having to visit the actual site. Similar to feeds and syndication, widgets can save a user time by making everything they care about on the web easily accessible in one place. Widgets are used as a distribution method by ad networks such as Google‘s AdSense, by media sites such as Flickr, by video sites such as YouTube and by hundreds of other organizations. Marketing benefit: Applications can be integrated within a third party website by the placement of a small snippet of code. This is becoming a distribution or marketing channel for many companies. The code brings in ‗live‘ content – advertisements, links, images – from a third party site without the web site owner having to update. This offers new possibilities especially for direct marketing purposes within the online community. Back to previous slide © Pepper. a Computershare company 86
  63. 63. Glossary: Wiki Wiki: A wiki is a collaborative website which can be directly edited by anyone with access to it. One of the best known wikis is Wikipedia ( Critics of open-source wiki systems argue that these systems could be easily tampered with; while proponents argue that the community of users can catch malicious content and correct it. A defining characteristic of wiki technology is the ease with which pages can be created and updated. Generally, there is no review before modifications Screenshot of, which is the most famous wiki on the Web are accepted. Many wikis are open to the general public without the need to register any user account. Sometimes session log-in is requested to acquire a "wiki-signature" cookie for autosigning edits. Many edits, however, can be made in real-time, and appear almost instantaneously online. Many wiki communities are private, particularly within enterprises. They are often used as internal documentation for in-house systems and applications. The "open to everyone", all-encompassing nature of Wikipedia ( is a significant factor in its growth, while many other wikis are highly specialized. Screenshot of, which is a site for traveller information List of wikis: Back to previous slide © Pepper. a Computershare company 87
  64. 64. Backup © Pepper. a Computershare company 88
  65. 65. Stages in Internet use Back to previous slide © Pepper. a Computershare company 89
  66. 66. Types of Engagement At the end of 2006, Time magazine decided that its person of the year was 'You‟ in dependence on the user shaping and gaining control over the information on the Internet Back to previous slide © Pepper. a Computershare company 90
  67. 67. The Internet‟s Growth Curve Back to previous slide © Pepper. a Computershare company 91
  68. 68. New channels have emerged to meet the needs of the users Communication Personal Community Information Back to previous slide © Pepper. a Computershare company 92
  69. 69. An online user can have multiple identities on the Web • Online users have different identities according to purpose, e. g. who I know, what I buy, what I like, etc. • A participation on different online platforms gives the user control on how different interest spheres mix or do not mix because there is not an unique platform for everything Back to previous slide © Pepper. a Computershare company 93
  70. 70. Strong growth of blogs Back to previous Source: Technorati slide © Pepper. a Computershare company 94
  71. 71. Forms of the social web Back to previous slide © Pepper. a Computershare company 95
  72. 72. Ad Spends on Social Networks © Pepper. a Computershare company 96