Day2 1715 turning_cogs_havas_digital

230 views

Published on

Published in: Education, Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
230
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Day2 1715 turning_cogs_havas_digital

  1. 1. Turning COGSThursday, 9th June 2011Anthony Rhind
  2. 2. Business environment ischallenging ... heightened by economic crisis  Ultra Competition  In a world of cheap interaction, entry barriers are few & firms must compete with a larger set of global rivals  Uncertainty  Difficult to predict market change; where tomorrow’s consumer, competitor or category innovation will come from  Complexity  When interaction with everyone in real-time is possible, decision-making becomes significantly more complex  Fragility  Interaction shifts the balance of power away from firms, to consumers, governments & other stakeholders
  3. 3. Crisis has created a challenging advertising environment
  4. 4. ... but a digital opportunity
  5. 5. Certainly consumer „connection‟ is extending very rapidly Smartphones WW2 billion internet 4.6 billion active Symbian 36.6 (44.6) 500+ millionusers worldwide mobile „phones Android 25.5 (3.5) active Facebook (Internet World Stats) worldwide iPhone 16.7 (17.1) users worldwide (UN Telecommunications Agency) (Facebook) Blackberry 14.8 (20.7) (Gartner Q3 2010) 1 million Kinect units517 million digital sold first 10 days. 5 7.5 million iPads TV households (Informa Telecoms & Media) million expected by sold in 6 months Christmas (Apple) (Microsoft) 4 million Foursquare 190 million Twitter registered users registered users (Twitter) (Twitter) 72% of teens have 62% of Europeanbecome a brand "fan" shoppers consultor "friend“ on a social online forums before network buying
  6. 6. ... & capital stakeholders are confident $9 billion cap $8.5 billion Trading $95 vs. 10.5x revenue $45 IPO price $575 million €750 million reported 2.6x revenue acquisition fund6/16/2011 :: 7
  7. 7. So digital inherits the (advertising) earth ... ?6/16/2011 :: 8
  8. 8. Something isn‟t working ...
  9. 9. Supply & demand market disconnect Source: Cisco Visual Networking Index: 2009– 2014
  10. 10. Audience is over supplied & growth areas under valued ...Fixed cost entertainment Driven by social Growth in low costadvertising markets Impactful, innovative, mobile ... hard to measure ROI
  11. 11. Familiar trading paradigm?
  12. 12. „Price‟ & „value‟ not the same ... but price is an optimisation leverAuditing is a fact of life ... it‟s scope will increase
  13. 13. Digital content value destruction ... „publisher‟ & „media agency‟ business modelSource: Cisco Visual Networking Index: 2009–2014 stress 6/16/2011 :: 14
  14. 14. Digital „tonnage‟ ... advertising commoditisation Cluttered consumer experienceAdvertising poor, generic, annoying
  15. 15. Digital „tonnage‟ ... advertising commoditisation Cluttered consumer experience Advertising poor, generic, annoying Low publisher sell-through / yield Stressed content business modelAgency margin stressed by commissionmodel, complexity & operational scale
  16. 16. Digital „tonnage‟ ... advertising commoditisation Cluttered consumer experience Advertising poor, generic, annoying Low publisher sell-through / yield Stressed content business modelAgency margin stressed by commission model, complexity & operational scale Advertisers perceive digital as low value
  17. 17. ...must ad(d) value6/16/2011 :: 18
  18. 18. Less inventory is a requirement ... scarcity & certainty drive value Better consumer experience ... Better advertiser experience …6/16/2011 :: 19 Better publisher margin
  19. 19. “The next phase of media will be after the page & after the site. Media can‟t expect us to go to it all the time. Media must insinuate itself into our steams.” Jeff Jarvis6/16/2011 :: 20
  20. 20. “1 billion impressions, 0.5% CTR” ... mustn‟t forget they are PEOPLE !!! 1963 The consumer isnt a moron; she is your wife. You insult her intelligence if you assume that a mere slogan & a few vapid adjectives will persuade her to buy anything. She wants all the information you can give her.6/16/2011 :: 21
  21. 21. Reflect person‟s many selves ... reflect person‟s inter-related devices CUSTOMER USER CONSUMERPRODUCER PERSON PARTICIPANT COMMUNITYContent & advertising ... authorised, user generated ... peer to peer conversations
  22. 22. Touchpoints paid, owned, earned & outcomes talk, think, trust I talk WE talk THEY talk TALK THINK TRUST What the consumer What others What the experiences say about thecompany says (interactions & conversations) company thebrand.com 23
  23. 23. Execution must better exploit: technology, data, automation, programmatic - segmentation, trading, & „experience‟6/16/2011 :: 24
  24. 24. Hype, hype, hype, hype, hype, hype Believe it!6/16/2011 :: 25
  25. 25. Today is only the dawn ... Adoption inevitable, opportunity significant ... move first!6/16/2011 :: 26
  26. 26. Privacy no longer a “social norm”* User level real-time data must enrich digital planning & buying & creative 6/16/2011 :: 27* Crunchie Awards: January 2010
  27. 27. Live „listening‟ to design contact strategies is critical
  28. 28. New planning tools to balance all touchpoints locally ... globally6/16/2011 :: 29
  29. 29. Real-time execution based on integrated consumer data-sets Planning User-based Tailored Data Guidance Optimization ManagementDisplay Campaign Benchmarks by Client Industry, CTR (Left) and CPC (Right)Timeframe: January-December 2007• Pricing benchmarks • Cross-channel digital • Integration of sales &• Reach & frequency reach & frequency engagement activity estimates • Display influence on • Tailored KPIs• Daypart synergy with search activity • Customized dashboard offline • Keyword attribution reporting and learning model
  30. 30. Impression level „audience‟ & „domain‟ optimised programmatic buying6/16/2011 :: 31
  31. 31. Clashing cultures: Creativity & intuition vs. technology & mathematics “Philosophy is dead. “Dangerous primacy of Philosophers have not mathematics over kept up with modern psychology ... developments in in business thinking & science.” decision making”6/16/2011 :: 32
  32. 32. Digital marketing must balance „art‟ & „science‟ ... whilst also enforcing RESPONSIBLY6/16/2011 :: 33
  33. 33. “Re-tooling talent”All levels & disciplines, especially management6/16/2011 :: 34
  34. 34. Radical reinvention doesn‟t happen overnight6/16/2011 :: 35 130 years ... unfinished
  35. 35. Thank you! Obrigado! Gracias! Merci! Grazie! Arigatô! Vielen Dank! Terima Kasih! 谢谢您!6/16/2011 :: 36

×