How to brand a destination using Web 2.0


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This presentation looks at how branding has changed over the last 30 years, and what the next era of branding will bring. It looks at how Web 2.0 will affect destination branding, using Croatia tourism as a hypothetical example, complete with suggested strategies and tactices

How to brand a destination using Web 2.0

  1. 1. BRANDING IN THE 21 st CENTURY (R)EVOLUTION: How Croatia can move to “Your Brand 2.0” Nick Wreden, CEO FusionBrand February 29, 2008 Find • Grow • Measure • Profit © 2008. FusionBrand. All rights reserved.
  2. 2. 21st CENTURY BRANDING <ul><li>“ The future is here. It’s just not evenly distributed yet.” </li></ul><ul><li>- - William Gibson </li></ul><ul><li>Neuromancer </li></ul>
  3. 3. 21st CENTURY BRANDING <ul><li>BRANDS: Short shelf life </li></ul><ul><ul><li>Average tenure of CMOs at top firms = 22.9 months </li></ul></ul><ul><ul><li>Average failure rate of brands = 40%, 49%, 54%, 60%, 80% </li></ul></ul><ul><ul><li>Why?????? </li></ul></ul><ul><ul><ul><li>Concept of brand = strategic asset well-known </li></ul></ul></ul><ul><ul><ul><li>Budgets = 1% of sales (insurance) -> 50-60% of sales (technology) </li></ul></ul></ul><ul><ul><ul><li>Lots of smart, creative people </li></ul></ul></ul>
  4. 4. 21st CENTURY BRANDING <ul><li>BRAND FAILURE: Why? </li></ul><ul><ul><li>Brands fail largely because companies use concepts, strategies, and tactics that were suited for 1988, but are doomed to fail in 2008 and beyond. </li></ul></ul><ul><ul><ul><li>Creative-driven branding </li></ul></ul></ul><ul><ul><ul><li>Unmeasureable strategies or concepts </li></ul></ul></ul><ul><ul><ul><li>“ Top-down,” one-size-fits-all marketing </li></ul></ul></ul>
  5. 5. 21st CENTURY BRANDING “ A name, term, sign, symbol or design, or a combination of these that identifies the goods or services or one seller or group of sellers and differentiates them from those of competitors”. “ The sum of all the images and associations customers have concerning a company”. “ Great brands are born from people who are having fun. Their excitement is reflected in the meaning of the brand”. “ A brand is a long-term profitable bond between an offering & a customer. This relationship is based on economic, emotional and/or experiential value, backed by everyday operational excellence & consistently measured, optimally by customer profitability.”
  6. 6. 21st CENTURY BRANDING Marketing Dept. Mass economy (1920-95) Customer economy (1996-2008) Demand economy (2008-??) Advertising, PR, etc. “ Positioning” Market research Quality/service Process/integration Customer databases Immediacy Personalization Real-time enterprises Marketing dept. Organization Supply chain “ Sell what we make” “ Sell what customers buy” “ Provide customer value/solution” Sales Profitability Relationship depth Driver: Metrics:
  7. 7. 21st CENTURY BRANDING Product Development Targeting, “Positioning” Product Strategy Pricing Strategy Promotion Strategy Place Strategy Implementation, Monitoring & Control What two critical branding factors are missing? Ye Olde Mass Economy Top-down, corporate-driven
  8. 8. 21st CENTURY BRANDING <ul><li>BRANDING: Mass market dying </li></ul>Television Newspapers Magazines Radio Source: Forrester Research Decreased No change Increased 2% 2% 3% 5% 26% 26% 26% 20% 21st CENTURY BRANDING PC screen Mobile screen TV screen
  9. 9. 21st CENTURY BRANDING <ul><li>CASE: Mass market vs. customer economy </li></ul>DM acquisition cost = $333/ good account Source: Netbanker Puts prospects in charge Yields actionable data Engages prospects Cost = $30
  10. 10. <ul><li>SUSTAIN VALUE </li></ul><ul><li>Improve retention </li></ul><ul><li>Increase customer, product & account penetration </li></ul><ul><li>Personalize relationships </li></ul><ul><li>SENSE VALUE </li></ul><ul><li>Understand competitors </li></ul><ul><li>Sense market trends </li></ul><ul><li>Understand customers </li></ul><ul><li>Identify opportunities </li></ul><ul><li>DEFINE VALUE </li></ul><ul><li>Segment customers </li></ul><ul><li>Target profitable segments </li></ul><ul><li>Craft value propositions </li></ul><ul><li>Validate value propositions </li></ul><ul><li>REALIZE VALUE </li></ul><ul><li>Develop offerings </li></ul><ul><li>Meet customer demands for economic, experiential, emotion value </li></ul><ul><li>Measure value </li></ul>21st CENTURY BRANDING Find. Grow. Measure. Profit. Customer-driven
  11. 11. 21st CENTURY BRANDING <ul><li>BRANDING: Sign of the times </li></ul>“ Marketing is an organi-zational function & a set of processes for creating, communicating, & deli-vering value to custo-mers & for managing customer relationships in ways that benefit the organization & its stake-holders.” -American Marketing Association, 12/07 “ Marketing is the activity, set of institutions , & processes for creating, communicating, de-livering, & exchanging offerings that have value for customers, clients, partners, & society at large. ” -American Marketing Association, 1/08
  12. 12. CEM: (customer experience management) How a company looks to a customer CRM: How a customer looks to company Product focus Economic, experiential & emotional value “ Brand equity” Integration into lives or operations Action or SALE! “ Brand personality,” “awareness” Widgets, gadgets/flyers, OpenSocial apps, etc Search engines Banners Advertising/PR/etc Depth of engagement Profitability Sales Network ambassadors Retention Acquisition Self-segmentation Segmentation Mass marketing Customer co-creation; customers as innovators Peer-to-peer (P2P) branding “ Positioning” Demand economy Customer economy Mass economy BRANDING EVOLUTION
  13. 13. MEASUREMENT <ul><li>No standard definition of satisfaction </li></ul><ul><li>Satisfaction NOT = loyalty </li></ul>Satisfaction <ul><li>Not sales, market share or shareholder growth </li></ul>Profit growth <ul><li>20% of customers = 80% of profits </li></ul><ul><li>15% customers unprofitable </li></ul>Customer lifetime value <ul><li>= More sales </li></ul><ul><li>= Lower acquisition costs </li></ul><ul><li>= Positive WOM </li></ul>Retention Customer economy <ul><li>Unmeasureable </li></ul><ul><li>ROI calculation impossible </li></ul>“ Brand equity,” “brand personality,” “brand essence,” “position” Mass economy Comments Metrics
  14. 14. <ul><li>Value of social social/networks involved in (closed or public) </li></ul><ul><ul><li>Relevance of network to your brand </li></ul></ul><ul><li>Amount of interconnectivity among multiple networks </li></ul><ul><ul><ul><li>Network value </li></ul></ul></ul><ul><li>Number of contacts. </li></ul><ul><li>Degree of network involvement </li></ul><ul><ul><li>Online & offline social/network activities </li></ul></ul>Connection value <ul><li>Customer's knowledge, interest & involvement in category & brand </li></ul><ul><ul><li>Number of posts, reviews, feedback </li></ul></ul>Engagement value Demand economy Comments Metrics MEASUREMENT
  15. 15. Insights in customer value, activities, referrals, retention, behaviours, etc. No customer/prospect insight Enables measurement of spending, advertising & other marketing Impact difficult to measure <ul><li>Customer relationship is 1 competitive advantage not copied </li></ul><ul><ul><li>Only 15% of companies declare data as intangible asset in books </li></ul></ul><ul><ul><li>Most companies only get less than half of potential data from database </li></ul></ul>Competitive advantage = ? Focuses on acquisition & retention Focuses on acquisition Leverages data, segmentation & customer info to increase engagement Leverages visuals & messages to increase awareness Executive management drives strategy Lets agency drive strategy Relates to ads, R&D, sales, operations, supply chains & customer relationships Relates to logos & ads Data-driven branding Creative-driven branding STRATEGIC BRANDING ALTERNATIVES
  16. 16. 21st CENTURY BRANDING RSS feeds Email DIGITAL BRANDING EVOLUTION Contextual ads Banners Tagging Search engine optimization Interactivity Publishing Podcasts/Video Downloads Cost per click/action Hits/Page views SQL HTML Links Hits Wikis Encylopedias Blogs Personal sites Web 2.0 Web 1.0
  17. 17. 21st CENTURY BRANDING <ul><li>(R)EVOLUTION: Moving to “YourBrand 2.0” </li></ul><ul><li>Mass access </li></ul><ul><li>Word/print-centric </li></ul><ul><li>“ Something for everybody” </li></ul><ul><li>Social networks </li></ul><ul><li>Video-centric </li></ul><ul><li>Customized content (widgets, etc) </li></ul><ul><li>Business networks </li></ul><ul><li>Knowledge-centric </li></ul><ul><li>Timely content </li></ul><ul><li>Stakeholder networks </li></ul><ul><li>Database-centric </li></ul><ul><li>Supply chain integration </li></ul>
  18. 18. 21st CENTURY BRANDING <ul><li>INTERNET 1.0: Familiar model </li></ul>Unitary (1 page, multiple data) CHARACTERISTICS Link-oriented “ Pull” information Product-centric (destinations & events) Strategy, message, USP unclear
  19. 19. 21st CENTURY BRANDING <ul><li>WEB 2.0: Background </li></ul><ul><li>&quot;Web 2.0 is a knowledge-oriented environment where human interactions generate content that is published, managed and used through network applications in a service-oriented architecture.&quot; --IBM </li></ul><ul><li>“ Networks of interest” </li></ul><ul><ul><li>Facebook, MySpace, etc. </li></ul></ul><ul><ul><li>Social bookmarking </li></ul></ul><ul><li>Personalization </li></ul><ul><ul><li>Personalized portals </li></ul></ul><ul><ul><ul><li>“ Tagging” </li></ul></ul></ul><ul><li>Data/content targeting </li></ul><ul><ul><li>Widgets </li></ul></ul><ul><ul><li>Landing pages </li></ul></ul><ul><li>Visualization </li></ul><ul><ul><li>Video </li></ul></ul>
  20. 20. 21st CENTURY BRANDING <ul><li>WEB 2.0 #1: “Networks of interest” </li></ul><ul><ul><li>Definition: (aka “communities of interest”) Networks interconnect people who share a common interest or passion in information, activity or interaction undefined by sex, geography, age, etc. </li></ul></ul><ul><ul><ul><li>May be interconnected with other networks/ communities (personal, OpenSocial) </li></ul></ul></ul><ul><ul><ul><li>Develop “norms” based on shared values/feelings </li></ul></ul></ul><ul><ul><ul><ul><li>Self-segmentation </li></ul></ul></ul></ul><ul><ul><ul><li>UK study: 80% discuss brands </li></ul></ul></ul><ul><ul><ul><li>Thousands: Facebook, MySpace, Eons, TeeBeeDee, LinkedIn, Ning (roll-your-own) </li></ul></ul></ul>Facebook Xanga Vois Viadeo “ 6 degrees” Return on networking invest
  21. 21. 21st CENTURY BRANDING Croatia: MySpace Croatia: Facebook MySpace (80.74%) Facebook (10.3%) Bebo (1.3%) BlackPlanet (0.9%) Xanga (0.9%) iMeem (0.7%) Yahoo!360 (0.72%) Classmates (0.72%) Hi5 (0.7%) Tagged (0.7%) Hitwise, 3/07 POPULARITY
  22. 22. 21st CENTURY BRANDING <ul><li>COMMUNITIES: Social bookmarking </li></ul><ul><ul><li>Internet 1.0 </li></ul></ul><ul><ul><ul><li>Directories (Google, Yahoo!, MSN, etc.) organize the Web for you (spiders/algorithms) </li></ul></ul></ul><ul><ul><li>Social bookmarking </li></ul></ul><ul><ul><ul><li>You organize Web for yourself or community (perceived utility vs. links) </li></ul></ul></ul><ul><ul><ul><ul><li>Tagging (keywords) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Tag cloud: Relative importance (eg popularity)of hyperlink represented visually </li></ul></ul></ul></ul><ul><ul><ul><li>Visible to others </li></ul></ul></ul> techblog/article/ list_of_social_book marking_sites/ Social bookmark managers
  23. 23. 21st CENTURY BRANDING <ul><li>WEB 2.0 #2: “Personalization” </li></ul><ul><ul><li>Old definition: “Supersite” (Yahoo!, MSN, AOL) for search, news, email, shopping, map services, chat, etc. </li></ul></ul><ul><ul><li>New definition: One-stop shop for personal interests -- “my-portals,” “personalized start pages” </li></ul></ul><ul><ul><ul><li>Netvibes, iGoogle, Pageflakes, Webwag, etc. </li></ul></ul></ul><ul><ul><ul><li>Use of widgets, RSS </li></ul></ul></ul><ul><ul><ul><li>For individuals or select communities </li></ul></ul></ul>My Yahoo! 2000
  24. 24. 21st CENTURY BRANDING <ul><li>WEB 2.0 #2: “Personalization” </li></ul>Social bookmark Stock RSS Self-select community Chat Tourism Hospitality networkED (THED) Video Flickr (photos) Central file storage News feed Personal
  25. 25. 21st CENTURY BRANDING <ul><li>WEB 2.0 #3: Data/content targeting </li></ul><ul><ul><li>Widgets: Small, interactive apps for PCs, Web (social networks, blogs, etc), mobile </li></ul></ul><ul><ul><ul><li>AKA “gadgets” (Microsoft/Google) & “applications” (Facebook) </li></ul></ul></ul><ul><ul><ul><li>Video, game, calculator, sports, stock, etc. </li></ul></ul></ul><ul><ul><ul><li>Uses RSS feeds </li></ul></ul></ul><ul><ul><li>Free, discrete data flow from site 2 site, person to person </li></ul></ul><ul><ul><li>Brand & revenue payoffs </li></ul></ul><ul><ul><ul><li>Can carry links, logos, advertising, be emailed </li></ul></ul></ul><ul><ul><ul><li>Viral, visibility, traffic, SEO, E-commerce </li></ul></ul></ul>
  26. 26. 21st CENTURY BRANDING <ul><li>WIDGETS: Examples </li></ul><ul><li>Continuously updated information </li></ul><ul><li>Football standings, stocks, weather, product prices, etc. </li></ul><ul><li>Multimedia info </li></ul><ul><li>Video, Web links, sharing, interactivity, etc. </li></ul><ul><li>Webcam </li></ul><ul><li>Tourism, security, visual power/proof, etc. </li></ul>
  27. 27. 21st CENTURY BRANDING Webcam Widget Info Widgets Events Widget Poll Widget 1.0 SITE -> 2.0 SITE Tagging!!
  28. 28. 21st CENTURY BRANDING <ul><li>DATA/CONTENT TARGET: Landing pages </li></ul><ul><ul><li>Website page visitors arrive at when clicking on a link </li></ul></ul><ul><ul><ul><li>Home page or any other page </li></ul></ul></ul><ul><ul><li>Use landing pages </li></ul></ul><ul><ul><ul><li>To control where people are coming from </li></ul></ul></ul><ul><ul><ul><li>Better measurement of ads, campaigns, etc. </li></ul></ul></ul><ul><ul><ul><li>Easier navigation for visitors </li></ul></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><ul><li>Improve engagement </li></ul></ul></ul><ul><ul><ul><li>Improves conversions through targeting </li></ul></ul></ul>
  29. 29. 21st CENTURY BRANDING <ul><li>LANDING PAGES: Campaigns at work </li></ul>Not: Video Measurement WITHOUT spiders!
  30. 30. 21st CENTURY BRANDING <ul><li>WEB 2.0 #4: Visualization/Video </li></ul><ul><ul><li>Greater interaction with video ads than image ads </li></ul></ul><ul><ul><ul><li>Study: 8% interaction (Mouseovers, etc.) </li></ul></ul></ul><ul><ul><ul><li>Doubleclick CTR study: </li></ul></ul></ul><ul><ul><ul><ul><li>Image: 0.1-0.2%; Video: 0.4-0.74% </li></ul></ul></ul></ul><ul><ul><li>Study: 51% of major US corporations have online video strategy (“vidcasts”) </li></ul></ul><ul><ul><ul><li>Internal branding (training, corp. strategy, etc.) </li></ul></ul></ul><ul><ul><ul><li>PR (Video news releases; “white papers”) </li></ul></ul></ul><ul><ul><ul><ul><li>(, eHow, videojug, viewdo, etc.) </li></ul></ul></ul></ul>
  31. 31. 21st CENTURY BRANDING <ul><li>CROATIA 2.0: Strategic outline </li></ul><ul><ul><li>Existing Web site </li></ul></ul><ul><ul><ul><li>Platform for branding </li></ul></ul></ul><ul><ul><ul><li>Transition to 2.0 </li></ul></ul></ul><ul><ul><li>Landing pages (LP) </li></ul></ul><ul><ul><ul><li>Targets niche markets </li></ul></ul></ul><ul><ul><ul><li>Uses ‘tags’ on pages </li></ul></ul></ul><ul><ul><li>Croatia 2.0 communities/networks </li></ul></ul><ul><ul><ul><li>High-yield segments </li></ul></ul></ul><ul><ul><ul><li>Users can add data </li></ul></ul></ul>Croatia 2.0 Hiking LP Croatia 2.0 Culture LP Croatia 2.0 Sail LP Croatia 2.0 RE LP Song Network.. Dance Network Agent Network 65+ Network Cruise Network Sail boat Network Mountain Network. Camp Network
  32. 32. 21st CENTURY BRANDING <ul><li>CROATIA 2.0: Cruise landing page </li></ul>#1: View operators/ itineraries <ul><li>#3: Connect with other passengers </li></ul><ul><li>Trip reviews </li></ul>#4: Getting there (link to Google maps) #2: Downloadable 3D map <ul><li>#5: Interactivity </li></ul><ul><li>Contests/surveys </li></ul><ul><li>External links </li></ul><ul><li>Formal wear </li></ul><ul><li>Dive sites </li></ul><ul><li>Legal info </li></ul>Ext. communities Grapheety, zoomandgo, tripim, etc #6: Video
  33. 33. 21st CENTURY BRANDING <ul><li>WEB 2.0: “What if they say something bad?” </li></ul><ul><ul><li>Negative comments WILL be made </li></ul></ul><ul><ul><ul><li>Post with you or post elsewhere </li></ul></ul></ul><ul><ul><li>More important: How you address </li></ul></ul><ul><ul><ul><li>HSBC eliminated overdraft fees after 6,000 customers complained on Facebook </li></ul></ul></ul><ul><ul><li>Respond fast </li></ul></ul><ul><ul><ul><li>By engaging early, can head off problems </li></ul></ul></ul><ul><ul><ul><li>Silence is the worst response!!! </li></ul></ul></ul><ul><ul><li>Use as early warning/feedback system </li></ul></ul><ul><ul><ul><li>Forrester: 65% of companies surveyed tracking social media to identify new risks & issues </li></ul></ul></ul>Asked why M-Net had edited its discussion forum to remove comments about sexual assault, a spokesman said: &quot;This is a serious allegation & there is no proof of this.”
  34. 34. 21st CENTURY BRANDING <ul><li>“ YOUR BRAND 2.0:” Tools </li></ul><ul><ul><li>Traditional </li></ul></ul><ul><ul><ul><li>Dreamweaver, etc. </li></ul></ul></ul><ul><ul><li>New (Video, interaction, mash-ups) </li></ul></ul><ul><ul><ul><li>Viewbook </li></ul></ul></ul><ul><ul><ul><li>Splashcast </li></ul></ul></ul><ul><ul><ul><li>Jumpcut </li></ul></ul></ul><ul><ul><ul><li>Slide </li></ul></ul></ul><ul><ul><ul><li>Slideshare </li></ul></ul></ul><ul><ul><ul><li>Mapwing </li></ul></ul></ul><ul><ul><ul><li>Google MyMaps </li></ul></ul></ul><ul><ul><ul><li>TouFee </li></ul></ul></ul><ul><ul><ul><li>Webslides </li></ul></ul></ul><ul><ul><ul><li>Many, many more </li></ul></ul></ul>
  35. 35. 21st CENTURY BRANDING <ul><li>“ YOUR BRAND 2.0:” Tools </li></ul><ul><ul><li>Social Media Releases (SMR) </li></ul></ul><ul><ul><ul><li>Incorporate Web 2.0 & other elements that give journalists, etc tools to create multimedia story </li></ul></ul></ul><ul><ul><li>OpenSocial </li></ul></ul><ul><ul><ul><li>Standard tools for building apps/widgets across social networks </li></ul></ul></ul><ul><ul><li>Ajax </li></ul></ul><ul><ul><ul><li>Programming techniques for creating interactive web apps </li></ul></ul></ul><ul><ul><ul><ul><li>Update small amounts of data, not Web page </li></ul></ul></ul></ul>
  36. 36. SMR example virtualthirst-socialmediarelease. html
  37. 37. 21st CENTURY BRANDING <ul><li>NEXT STEPS: “YourBrand 2.0” </li></ul><ul><ul><li>Abandon mass-economy ideas </li></ul></ul><ul><ul><ul><li>“ Positioning,” “brand personality,” etc. </li></ul></ul></ul><ul><ul><ul><li>Customers define brands, based on value </li></ul></ul></ul><ul><ul><li>Start measurement </li></ul></ul><ul><ul><ul><li>Data for smarter decision-making; ROI </li></ul></ul></ul><ul><ul><ul><ul><li>Customers, retention, campaigns, etc </li></ul></ul></ul></ul><ul><ul><li>Develop social networking strategy </li></ul></ul><ul><ul><ul><li>Develop “personas” in social communities </li></ul></ul></ul><ul><ul><ul><li>Create your own communities </li></ul></ul></ul><ul><ul><ul><ul><li>Internal (IBM); External (supply chains) </li></ul></ul></ul></ul>
  38. 38. 21st CENTURY BRANDING <ul><li>NEXT STEPS: “YourBrand 2.0” </li></ul><ul><ul><li>Develop & expand widget use </li></ul></ul><ul><ul><ul><li>What on site can be added/used for widgets? </li></ul></ul></ul><ul><ul><li>Develop landing pages </li></ul></ul><ul><ul><ul><li>Integrate with advertising, PR, promotion </li></ul></ul></ul><ul><ul><li>Develop online video strategy </li></ul></ul><ul><ul><ul><li>Don’t think press release; think video! </li></ul></ul></ul><ul><ul><ul><li>Buy digital video cameras; expand in-house editing etc. skills </li></ul></ul></ul>
  39. 39. 21st CENTURY BRANDING <ul><li>NEXT STEPS: “YourBrand 2.0” </li></ul><ul><ul><li>Develop consumer/user marketing strategy </li></ul></ul><ul><ul><ul><li>Encourage links, forward, invites, nudges, etc. </li></ul></ul></ul><ul><ul><li>Leverage self-segmentation to target “right” social networks </li></ul></ul><ul><ul><ul><li>Location ( = china) </li></ul></ul></ul><ul><ul><ul><li>Interest/passion (myspace = music) </li></ul></ul></ul><ul><ul><ul><li>Identity (ivillage = female) </li></ul></ul></ul><ul><ul><ul><li>Lifecycle (theknot = marriage) </li></ul></ul></ul>
  40. 40. 21st CENTURY BRANDING <ul><li>NEXT STEPS: “YourBrand 2.0” </li></ul><ul><ul><li>Monitor SMM (Social Media Marketing) & SMO (Social Media Optimization) </li></ul></ul><ul><ul><ul><li>OpenSocial, SMRs, AJAX, other trends </li></ul></ul></ul><ul><ul><li>Start preparing now! </li></ul></ul><ul><ul><ul><li>Research, pilots, step-by-step implementation </li></ul></ul></ul>Inevitably, we are moving from Information Age to Social Age Web 2.0 will transform your brand like Web 1.0 did
  41. 41. THANK YOU! QUESTIONS? Find • Grow • Measure • Profit Asia’s leading data-driven brand consultancy “ Best Business Book” Want presentation copy? Go to and email me!