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Digital is a Philosophy by Augustine Fou

If "digital" were a "philosophy" instead of just the online channel, then we can use the insights gathered from digital channels to make ALL marketing and advertising better.

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Digital is a Philosophy by Augustine Fou

  1. 1. Digital is a Philosophy Dr. Augustine Fou http://linkd.in/augustinefou Marketing Science Consulting Group, Inc.March 28, 2012 1
  2. 2. March 28, 2012 ‹#›
  3. 3. Context of my thinking ... Marketing and Advertising Chief Digital Officer, HCG (Omnicom) Digital Business Strategy Technology / Innovation McKinsey Consultant PhD, MIT Mat‟l Science-3- Augustine Fou
  4. 4. Background StatsTechnology EnablementFebruary 18, 2013 4
  5. 5. Internet Adoption 78% use internet Source: Pew Internet, April 2012-5- Augustine Fou
  6. 6. Smartphone Ownership 34-66% use smartphones Source: Pew Internet, Jan 2012 Source: Pew January 2012-6- Augustine Fou
  7. 7. Use of Social Networks “online seniors are using tools like Facebook to bridge the social gaps they face in increasingly isolated lives.” Source: Pew February 2012-7- Augustine Fou
  8. 8. Top Online Activities Source: Pew Internet, April 2012-8- Augustine Fou
  9. 9. Screen-based consumption Source: Google, August 2012 Multi-screen World-9- Augustine Fou
  10. 10. Modes of multi-screening Source: Google, August 2012 Multi-screen World- 10 - Augustine Fou
  11. 11. Industries AlreadyChanged by DigitalFebruary 18, 2013 11
  12. 12. Music Industry 16 songs “the ONE song I like”- 12 - Augustine Fou
  13. 13. Video Rental Industry- 13 - Augustine Fou
  14. 14. 35mm Film Industry- 14 - Augustine Fou
  15. 15. Retail – Books, Electronics- 15 - Augustine Fou
  16. 16. Newspaper Ads Declining Classified ad revenue Overall ad revenues fell declining since 2000 off cliff (back to 1950‟s levels)- 16 - Augustine Fou
  17. 17. Newspaper Companies Gannett Co., Inc. (GCI) - $3.4B market cap July 2012 New York Times (NYT) - $1.1B market cap July 2012 Both off 70-80% since 2007 peak- 17 - Augustine Fou
  18. 18. Magazine Ads Declining Circulation declining Ad prices pressured by online alternatives Shift away from reach to performance- 18 - Augustine Fou
  19. 19. Magazine Companies Meredith Corp (MDP) - $1.4B market cap July 2012 Martha Stewart (MSO) - $235M market cap July 2012 Off 50% (MDP) and 80% (MSO) since 2007 peak- 19 - Augustine Fou
  20. 20. Digital Maturity by Industry High technology Banking Insurance Travel/Hospitality Telecom Retail Consumer Goods Utilities Manufacturing Pharmaceuticals Source: Cap Gemeni Consulting, Nov 2012- 20 - Augustine Fou
  21. 21. How Digital HasChanged the LandscapeFebruary 18, 2013 21
  22. 22. Media has Evolved Always on Always informed Always connected banner ads search ads One-way Media Two-way Media Many-Way Media- 22 - Augustine Fou
  23. 23. Users have Evolved PUSH PULL • Direct marketing People ignore “interruption media” and • Email marketing only pay attention to information they are • Online marketing seeking. (“Purple Cow” by Seth Godin) • Sports marketing • Word of mouth marketing • Guerrilla marketing • Blog marketing • Event marketing • Product placement • In-game marketing • Sponsorships Advertisers push message out Users do their own research- 23 - Augustine Fou
  24. 24. User Habit: “search” Most modern users look no further than page 1 Page 1 … if they can‟t find you, you don‟t exist- 24 - Augustine Fou
  25. 25. User Expectation: “now” Screen shots of how websites appear on Blackberries JnJ.com Novartis.com GSK.com … if they can‟t find you right now, they‟ll leave.- 25 - Augustine Fou
  26. 26. But, users research products- 26 - Augustine Fou
  27. 27. They find info via search… … to inform their own purchase decisions.- 27 - Augustine Fou
  28. 28. Users trust peers the most…- 28 - …and ads the least Augustine Fou
  29. 29. Advertising as we know it… ..consists of advertisers shouting their ads at people.- 29 - Augustine Fou
  30. 30. Pitching AND Catching Instead of … Traditional Digital VS Metric: Metric: Size of Actions of Audience Users Pitching + Catching- 30 - Augustine Fou
  31. 31. This TV Ad during Olympics…Supposedly touting “the largest 4G network” http://www.youtube.com/watch?v=c8Y_oeYlmUw- 31 - Augustine Fou
  32. 32. … drove sales for AudibleSpecific titles: Moby Dick, Odyssey spiked up Odyssey Moby Dick- 32 - Augustine Fou
  33. 33. Case Example: Kodak Pitching + Catching Canon and Fuji were harvesting ROI online because they had better search optimized websites and better reviews on Amazon.- 33 - Augustine Fou
  34. 34. Introducing Digital is a Philosophy- 34 - Augustine Fou
  35. 35. What if … Instead of thinking of “digital” as just the online channel, technology, and associated tactics… … we thought of „digital‟ as a „philosophy.‟- 35 - Augustine Fou
  36. 36. Digital is the “thread” … 1st screen 2nd screen 3rd screen awareness consideration choice purchase advocacy • Television • Display Ads • Search Ads • In-store • Social Media • Print • Search Optimization Marketing • Radio • Email • Mobile Marketing … that ties all tactics together.- 36 - Augustine Fou
  37. 37. Digital Strategy Tree Marketing Tactics (branches) Email Video Digital Strategy (trunk) Business Strategy (roots)- 37 - Augustine Fou
  38. 38. Search as ResearchFebruary 18, 2013 38
  39. 39. Barbecue Grills - Summer- 39 - Augustine Fou
  40. 40. HDTVs - Black Friday- 40 - Augustine Fou
  41. 41. Hess Truck - Christmas- 41 - Augustine Fou
  42. 42. Godaddy – Superbowl AdsSearch volume rises with Superbowl ads and NASCAR sponsorship SuperBowl Ads NASCAR- 42 - Augustine Fou
  43. 43. Subway FootlongsLaunched in early 2008, but waning interest TV Ads started- 43 - Augustine Fou
  44. 44. Discount Double CheckInitial SuperBowl Ad, then follow-on TV ads SuperBowl Ad TV Ads- 44 - Augustine Fou
  45. 45. Godiva - Demand PlanningSee when users search for which products chocolate covered strawberries (Valentine‟s) chocolate covered cherries (Christmas)- 45 - Augustine Fou
  46. 46. Purell Sales Driven by H1N1 Purell demand and search volume lifted swine flu swine flu drove 1st peak h1n1 h1n1 drove 2nd peak 46- 46 - Augustine Fou
  47. 47. User Self-SegmentationThe exact words users use to search indicates who they are Physician Nurse Patient “orexin “dosage” “sleep receptor “how to drug” agonist” administer”- 47 - Augustine Fou
  48. 48. Social ActionsFebruary 18, 2013 48
  49. 49. Just sticking display ads on FB 2012 2011 2010 4 Source: Facebook Display Ads | go-Digital Blog … is not doing social media- 49 - Augustine Fou
  50. 50. Venues come and go friendster facebook (red) vs myspace myspace (blue) facebook- 50 - Augustine Fou
  51. 51. ConversationsOffline conversations now online
  52. 52. ReviewsReviews from others who bought and used
  53. 53. SharesWhat others found valuable enough to share # of shares
  54. 54. LikesBrands now have direct access to users 14 million fans historic images 25,495 like the item 1,168 comments
  55. 55. Social Actions … Paid Advertising Social Actions 10k Impressions People telling people can lead to the same 1 action 0.001% click-rate Share, recommend, comment, rate, like, etc. 1 action (go to website) 1 action (go to website) …are more effective- 55 - Augustine Fou
  56. 56. Social Actions … One-way Media Two-way Media Search Social Blogs “it‟s over after it‟s aired” Forums Even Superbowl ads stimulate only fleeting recall – of the top 100 daily Google searches how many were related to Superbowl ads?: Reviews • Feb 1: 20 of 100 • Feb 2: 6 of 100 • Feb 3: 1 of 100 “it‟s archived and can be • Feb 4: ZERO of 100 (forgotten by day 4) searched or mined later” …are longer lasting- 56 - Augustine Fou
  57. 57. Integrating “Long Lasting”.. paid marketing campaigns sustained organic traffic …digital techniques- 57 - Augustine Fou
  58. 58. Marketing in a Digital World Traditional Advertising Marketing in Digital World 1. Who is our target 1. What information does customer? target user need? 2. What message do we 2. Do we have that info push/shout at them? available? 3. Where do we stick the 3. Is it optimized so they can message? find and use it? “storytelling” “answering missing links”- 58 - Augustine Fou
  59. 59. If “digital” were a philosophy… FROM TO Push Pull Target Users Empowered Customers Search Advertising Search as Research Social Media Social Actions Ad Campaigns Persistent Advocacy Integrated Marketing Unified MarketingMarch 28, 2012 59
  60. 60. March 28, 2012 ‹#›

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