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How Brands Grow in a Digital Age

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How do brands really grow? How do brands grow in a radically disrupted internet economy? We explore brand growth in today’s digital world, with perspectives from Nicholas Lovell, Lionel Benbassat of Eurostar, and the Arena strategy team.

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How Brands Grow in a Digital Age

  1. 1. #GrowWithArena#GrowWithArena
  2. 2. How do brands grow?
  3. 3. #GrowWithArena Promotions Discounts Raise the price Loyalty scheme Big ad campaign NPD Brand extensions Engagement
  4. 4. #GrowWithArena Andrew Ehrenberg Byron Sharp
  5. 5. #GrowWithArena Brands Have used in the past twelve months Average number of purchases in twelve months Maxwell House Sanka Tester’s Coffee High Point Folgers Nescafe Brim
  6. 6. #GrowWithArena Brands Have used in the past twelve months Average number of purchases in twelve months Maxwell House 24% Sanka 21% Tester’s Coffee 22% High Point 22% Folgers 18% Nescafe 13% Brim 9%
  7. 7. #GrowWithArena Brands Have used in the past twelve months Average number of purchases in twelve months Maxwell House 24% 3.6 Sanka 21% 3.2 Tester’s Coffee 22% 2.8 High Point 22% 2.6 Folgers 18% 2.7 Nescafe 13% 2.9 Brim 9% 2.4
  8. 8. #GrowWithArena Observable in over 500 brands in 63 categories in 20 countries across 40 years
  9. 9. #GrowWithArena#GrowWithArena Brands Have used in the past twelve months % Average number of purchases in twelve months Weetabix 40.2 4.7 Klgs Cornflakes 39.8 5.1 Shredded Wheat 26.2 4.4 Frosties 24.9 3.6 Klgs Rice Krispies 23.8 3.1 Cheerios 19.9 4.2 Crunchy Nut Cflks 19.3 3.7 Klgs Coco Pops 18.6 3.4 Sugar Puffs 18.2 3.2 Mini Crunch 15.7 2.8 Shreddies 14.9 4.2 Special K 13.7 4.7 Alpen 13.1 3.2 Ready Brek 12.9 2.6 Quaker Oatso Simple 10.5 3.4 Weetos 8.8 4.3
  10. 10. #GrowWithArena • Competitive brands hardly differ in their loyalty levels. • Their difference in size is due to the difference in their user bases.
  11. 11. “The nature of buying suggests that marketing a brand successfully is very much like winning an election. While it might be most satisfying to win an election by converting all voters to avid party members, the reality is that to win an election a great number of less avid party numbers, independent voters and former voters for another party are needed as well.”
  12. 12. #GrowWithArena Do the same rules apply in the digital world? Are online shoppers the same? Do I shop in the same way on Amazon? The Kindle store isn’t like a book shop … What about when Ocado refills my trolley automatically?
  13. 13. What does this all mean for marketing?
  14. 14. #GrowWithArena#GrowWithArena Virtual availability
  15. 15. #GrowWithArena Get to know your digital audience Digital advertising is good at nudging And owned assets drive frequency levels From knowing to recognising
  16. 16. #GrowWithArena The brand living room New rules of engagement online Keep dialogue going Engagement gives permission to talk product
  17. 17. #GrowWithArena Reach Driving reach is still really important Penetration = reach What does reach really mean in the digital world?
  18. 18. #GrowWithArena Get noticed Not as easy at it sounds “if I want people to spot my ad I put Marilyn Monroe in it, if that doesn’t work I put Marilyn Monroe in topless” It’s not just what you say, it’s how you say it
  19. 19. #GrowWithArena Matching luggage Marketing works hardest when it is visually joined up But is also has to be behaviourally joined up The really good ones can speak different languages
  20. 20. #GrowWithArena Frictionless purchasing Make the steps super easy Lots of categories are impulse now Loyalty levels are arrived at very quickly
  21. 21. #GrowWithArena Honeymoon marketing The post purchase period is short but full of promise This is where you can nudge frequency most easily
  22. 22. #GrowWithArena The 7 rules of virtual availability • Get to know your digital audience • The brand living room • Reach • Get noticed • Matching luggage • Frictionless purchasing • Honeymoon marketing
  23. 23. The Curve Nicholas Lovell
  24. 24. How do we make money when everything is going free?
  25. 25. • “We’ve got to make people start valuing content again” • “I deserve to be paid for my work” • “You can’t make money from apps”
  26. 26. You need to earn the right
  27. 27. Free does not mean no revenues
  28. 28. Flip your thinking
  29. 29. Revenue opportunity Marketing opportunity Amounteachpersoniswillingtopay
  30. 30. The Curve
  31. 31. The Curve – in 3 steps • Find an audience • Use technology to figure out what they value and to talk to them again • Enable superfans
  32. 32. Freeloaders
  33. 33. Source of revenue
  34. 34. Word of mouth
  35. 35. Potential converts
  36. 36. Gawkers
  37. 37. Technology • Understand what your audience values • Earn the right to talk to them again
  38. 38. Superfans
  39. 39. Let those who love what you do spend lots of money on things they truly value
  40. 40. Let those who love what you do spend lots of money on things they truly value
  41. 41. Let those who love what you do spend lots of money on things they truly value
  42. 42. Let those who love what you do spend lots of money on things they truly value
  43. 43. Target: $400,000 Average pledge: $38.28
  44. 44. An unsurprising distribution 47,946 24,636 1,090 11,530 900 148 100 10 4 0 10,000 20,000 30,000 40,000 50,000 60,000 $15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000 Number of pledges Number of pledges
  45. 45. A very surprising distribution 719,190 739,080 65,400 1,153,000 225,000 74,000 100,000 50,000 40,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000 Double Fine Project revenue Double Fine Project revenue
  46. 46. A very surprising distribution • Total raised: $3,336,371 Pledges Money >=$250 1.3% 15.4% >=$1,000 0.1% 6.0% >=$100 14.7% 51.9%
  47. 47. Love your superfans Love everyone inbetween Love your freeloaders
  48. 48. Thank you @nicholaslovell www.nicholaslovell.com
  49. 49. #GrowWithArena Eurostar 3 dimensions of growth in a digital world Lionel Benbassat
  50. 50. #GrowWithArena Au menu aujourd’hui… 1. A bit of context 2. Eurostar 3 dimensions of growth in digital 3. What next ?
  51. 51. #GrowWithArena A bit of context…
  52. 52. #GrowWithArena Follow the yellow line
  53. 53. #GrowWithArena Red is hot
  54. 54. #GrowWithArena A big International brand?
  55. 55. #GrowWithArena Rather a strong multi-local brand
  56. 56. #GrowWithArena So far so good… 2013 RESULTS Revenue: £857m +7% vs 2012 10.1m passengers +3% vs 2012 Q1 2014 Revenue: £227m +7% YOY 2.3m passenger +3% YOY
  57. 57. #GrowWithArena Ramping up… MARKET SHARE EVOLUTION
  58. 58. #GrowWithArena Going down… FIRST TIMERS EVOLUTION
  59. 59. #GrowWithArena Our travellers lifecycle CONSIDERATION BUY LOYAL DISENGAGE AWARENESS CONSIDERATION BUY LOYAL DISENGAGE AWARENESS 3.1 YEARS 6.3 YEARS LEISURE BUSINESS & EXPATS & RELATIVES
  60. 60. #GrowWithArena What does that all mean? 1. More, more more…really ? 2. Hope we see you soon! 3. Love only last 3 years…
  61. 61. #GrowWithArena 3 dimensions of growth in digital
  62. 62. #GrowWithArena Les grands mots…
  63. 63. #GrowWithArena The first dimension Through
  64. 64. #GrowWithArena THE SEEDS OF LOVE…
  65. 65. #GrowWithArena A new potential Business customers Leisure customers E* Generation
  66. 66. #GrowWithArena And they engaged…
  67. 67. #GrowWithArena The second dimension Through
  68. 68. #GrowWithArenaWATERING THE SEEDS
  69. 69. #GrowWithArena Give reasons and trigger
  70. 70. #GrowWithArena It’s all about targeting
  71. 71. #GrowWithArena The third dimension Through BELONGING
  72. 72. #GrowWithArena Before everyone else
  73. 73. #GrowWithArena Just for you, and just online
  74. 74. #GrowWithArena What next?
  75. 75. #GrowWithArena 2015: Route Du Soleil – London- Marseille direct 2016: London – Amsterdam direct To grow we need to…
  76. 76. #GrowWithArena And…
  77. 77. #GrowWithArena The refine… WATER (Trigger) NURTURE (Retain) SEED (Engage)
  78. 78. #GrowWithArena Merci
  79. 79. Sharp Edges Or Curves? A Toolkit for Growth
  80. 80. #GrowWithArena Availability
  81. 81. #GrowWithArena Valuable users
  82. 82. #GrowWithArena Growth ‘from below’ Growth ‘from above’
  83. 83. #GrowWithArena Crowdsourcing Freemium Growth-hacking Digital footprint CRM Member-get-member Network effects ‘Earned’ media Partner marketing Effective SOV Salience Brand extensions & launches ‘Upper funnel’ marketing Direct response Brand comms Content distribution
  84. 84. #GrowWithArena Search demand vs. media investment
  85. 85. #GrowWithArena
  86. 86. A framework for growth
  87. 87. #GrowWithArena
  88. 88. #GrowWithArena
  89. 89. #GrowWithArena
  90. 90. #GrowWithArena
  91. 91. #GrowWithArena
  92. 92. #GrowWithArena
  93. 93. Sharp Curves: The Toolkit
  94. 94. #GrowWithArena
  95. 95. #GrowWithArena Every business has ‘owned’ data assets
  96. 96. #GrowWithArena
  97. 97. #GrowWithArena OWNED DATA PLATFORM
  98. 98. #GrowWithArena Owned content
  99. 99. #GrowWithArena
  100. 100. #GrowWithArena The Content Matrix Awareness PurchaseEmotionalRational videos widgets podcasts photos news white papers FAQs articles community celebrity endorsements events webinars product comparison surveys games applications
  101. 101. #GrowWithArena 35% 16% 6% 2008 2012 2014 Facebook organic reach 1% of brands have an organic reach of 84%
  102. 102. #GrowWithArena
  103. 103. #GrowWithArena This is probably the biggest Earned space Rankings = votes Votes = links Content drives links
  104. 104. #GrowWithArena Social extensions can increase CTR by 5 - 10% This is probably the biggest Earned space
  105. 105. #GrowWithArena Leveraging shared partnerships
  106. 106. #GrowWithArena Leveraging shared partnerships
  107. 107. #GrowWithArena Data driven Paid marketing 1st party 2nd party 3rd party Create rich and up to date audience segments Use lookalike modelling to grow prospepcting scale Data sync & segmentation Display Search Social Video Site Mobile
  108. 108. #GrowWithArenaContent hub Influencers Targeted Paid Media Earned media and PR Amplify with Paid
  109. 109. #GrowWithArena Measuring Paid, Owned, and Earned impact Scenario modelling on campaign GRPs and Reach across Owned, Earned, and Paid Forecasting impact on key brand and business metrics and what if? scenario planning
  110. 110. #GrowWithArena Take the principles of user-centred and data driven Think about advertising as content, not advertising It’s not just spots and space any more Think Owned, Earned, Shared and not just Paid Find the right blend for your brand, your audience, your sector The toolkit for growth in the digital age - applying Curve thinking to Sharp edges
  111. 111. #GrowWithArena THANK YOU

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