Digital Advertising Trends - Asian Publishing Convention

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The Consumer is control and ignores standard Advertising. He spends most of his time online and the online populations in Asia are exploding. Advertisers are trying to keep up and struggling with finding the right way to reach and engage them in a meaningful manner. Measuring this engagement is another challenge. The presentation will highlight key consumer trends, their online behavior and illustrate a way forward.
Presented on 17.07.09 at the Asian Publishing Convention in Manila, Philippines

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Digital Advertising Trends - Asian Publishing Convention

  1. 1. Digital Advertising - Trends -<br />Chris Schaumann<br />Global Advertising & Digital Lead<br />Asia Pacific & Greater China Region<br />CMG | Global Marketing Group<br />
  2. 2. 1. Changing Landscape<br />Did you know?<br />Bring the Love back<br />Digital Divide<br />Future Shape of Advertising<br />Agenda<br />2. Advertising v3.0<br />Trade Maps<br />New Marketing Model<br />Experiential Marketing<br />Measuring Engagement<br />3. Media & Management<br />Altered Media Universe<br />Role of Media & Agencies<br />Case Study from the Future<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />2<br />
  3. 3. Did you know?<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 3<br />
  4. 4. So what does it all mean?<br />Change!<br />“In 10 years, allmedia will be digital!”- Steve Ballmer, CEO Microsoft<br />We’ll need to rethink<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 4<br />a few things<br />media<br />advertising<br />marketing<br />agencies<br />ourselves<br />
  5. 5. Bring the Love back!<br />Join the conversation at<br />www.bringtheloveback.com<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />5<br />
  6. 6. Exploding Online Users in APAC<br />Source: www.internetworldstats.com , July 2009<br />17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />6<br />Almost 1.6 Billion Users Worldwide<br />
  7. 7. Still huge Potential in APAC<br />Source: www.internetworldstats.com , July 2009<br />17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />7<br />Internet Penetration <br />World Average: 24%<br />
  8. 8. Average Time of Media Exposure per Day - Asia<br />Source: Synovate PAX Digital Life, Nov 2008<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />8<br />
  9. 9. 2009 Internet Ad Share<br />Source: Zenith Media Pyramid Estimates, Dec 2008<br />17 July 2009<br />9<br />© Microsoft Corporation 2009 | WW CMG<br />13% APAC average<br />
  10. 10. Global Ad Spend Share by Media<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />10<br />Source: Zenith Optimedia<br />
  11. 11. Asia Pacific Net Advertising Growth<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />11<br />Source: MPA Research Estimates<br />
  12. 12. The Digital Divide<br />The Marketing Confidence Gap<br />17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />Slide 12<br />Source: Neo@Ogilvy<br />
  13. 13. 2007 Online Ad Market = $34B<br />6% of total Ad Market<br />2009 Online Ad Market = $52B<br />8% of total Ad Market<br />Total Advertising Industry = $570B<br />Total Software Industry = $135B<br />Software & Ad Market<br /> Online Ads<br />2009: $52B<br />Online Ads<br />$34B<br />Sources: <br /><ul><li>Market Sizes: Microsoft & Universal McCann
  14. 14. Online Market Sizes: Oppenheimer & Co. Inc., June 2007 (sources include Universal McCann, Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers )</li></ul>17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />13<br />
  15. 15. Global Media Consumption<br />17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />Slide 14<br />
  16. 16. …what about Microsoft?<br />Of the $500 million Microsoft allocated to the introduction of its Vista operating system, 30% went online.<br />Source: Times UK Online, October 21, 2005<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />15<br />
  17. 17. Future Shape of Advertising<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />16<br />
  18. 18. 1. Changing Landscape<br />Did you know?<br />Bring the Love back<br />Digital Divide<br />Future Shape of Advertising<br />Agenda<br />2. Advertising v3.0<br />Trade Maps<br />New Marketing Model<br />Experiential Marketing<br />Measuring Engagement<br />3. Media & Management<br />Altered Media Universe<br />Role of Media & Agencies<br />Case Study from the Future<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />17<br />
  19. 19. 17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 18<br />
  20. 20. The New Marketing Funnel<br />“The traditional AIDA funnel has become a sea of complexity”<br />Source: Forrester Research<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />19<br />
  21. 21. Trade Maps: Then and Now<br />18th Century: Map of the Northwest Passage<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />20<br />
  22. 22. Trade Maps: Then and Now<br />21st Century: Social Trade Map<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />21<br />
  23. 23. 17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 22<br />Source: http://www.caida.org/tools/visualization/walrus/gallery1/<br />
  24. 24. Customer-2-CustomerGeneration ‘C’ (for Content)<br />Research shows that 65%of all marketing spend in 2007 had no effect on consumers <br /><ul><li>70% of all Asian marketers are not tracking the effectiveness of their spending</li></ul>Source: The Fournaise Marketing Group’s 2007 Global Marketing Effectiveness Report<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />23<br />
  25. 25. Case Study: Unilever<br />http://www.campaignforrealbeauty.com<br />http://www.youtube.com/results?search_query=dove<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />24<br />Source: Youtube.com – 19,036,415 Views, October 2008<br />
  26. 26. Campaign for real Beauty<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 25<br />Source: Youtube.com – 19,036,415 Views, October 2008<br />
  27. 27. Campaign against real Life<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 26<br />Source: Youtube.com – 2,697,709 Views, October 2008<br />
  28. 28. Talk to your Daughter before they do!<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 27<br />Source: Youtube.com – 2,697,709 Views, October 2008<br />
  29. 29. Talk to your Daughter before Unilever does!<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 28<br />Source: Youtube.com – 164,946 Views, October 2008<br />
  30. 30. Talk to Dove before it’s too late!<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 29<br />Source: Youtube.com – 557,368 Views, October 2008<br />
  31. 31. Customer-2-Customer<br />Research shows that 86%of consumers no longer believe what brands say about themselves<br /><ul><li>Whereas 78% of consumers believe what other consumers say about brands</li></ul>Source: http://bbdolab.typepad.com/the_lab/2006/10/generation_c.html<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />30<br />
  32. 32. The top Brands that will be those whose Consumers... <br />...tell the best Stories<br />
  33. 33. Brands with themost Recommendation in theirCategory grow 4x faster than theCategory Average.Increasing recommendation by12% doubles sales growth.<br />Source: London School of Economics<br />Source: Bain Consulting<br />
  34. 34. Exploding Referral Spectrum<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 33<br />Source: The Value Profit Chain, Heskett/Sasser, Jan 2003<br />
  35. 35. Engaging Customers<br />“The essential difference between reason (logic) and emotion is that reason leads to conclusions while emotion leads to actions.” <br />- Neurologist Donald Calne<br />17 July 2009<br />34<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />
  36. 36. Engaging Customers<br />“95 percent of our purchase decision making takes place in the subconscious mind...” <br />- Gerald Zaltman, Professor, Harvard Business School<br />17 July 2009<br />35<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />
  37. 37. New Marketing Model<br />Source: Mohan Sawhney, Kellogg School of Management<br />17 July 2009<br />Slide 36<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />
  38. 38. Experiential Marketing<br />Attract<br />Engage<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />37<br />Excite<br />
  39. 39. Engaging Consumers<br />Immersive<br />Interactive<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />38<br />Participatory<br />
  40. 40. Perception<br />80% of CEO’s believe their brands provide a superior customer experience<br /><ul><li> 8% of their customer agree</li></ul>Source: Bain & Company<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />39<br />
  41. 41. Rich Digital Experiences<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 40<br />Source: AvenueARazorfish :: Showreel<br />e.g. http://www.audi.com/a4globaldrives<br />
  42. 42. PUBLISHER<br />TOOLS PROVIDER<br />Microsoft Media Network<br />17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />Slide 41<br />
  43. 43. Engagement Duration<br />Challenge<br />The new Marketing needs to not only to attract, but also engage & excite <br />Reach & Frequency are not catering to measure the quality of Engagement & Excitement<br />Solution<br />This new metric is coined: Brand Exposure Duration - BXD<br />BXD is the length of time an individual is exposed to a given advertisement<br />BXD = Views × Percent of Segment Viewed × Segment Length<br />BXD = Video Ad Views x %65 x 30 sec.<br />17 July 2009<br />42<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />
  44. 44. Engagement Mapping<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 43<br />Engagement Mapping is a flexible attribution model <br />that enable advertisers to include many factors<br />In their Engagement ROI calculations<br />Source: Atlas Engagement Mapping Paper, 2008<br />
  45. 45. 1. Changing Landscape<br />Did you know?<br />Bring the Love back<br />Digital Divide<br />Future Shape of Advertising<br />Agenda<br />2. Advertising v3.0<br />Trade Maps<br />New Marketing Model<br />Experiential Marketing<br />Measuring Engagement<br />3. Media & Management<br />Altered Media Universe<br />Role of Media & Agencies<br />Case Study from the Future<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />44<br />
  46. 46. 17 July 2009<br />Slide 45<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />
  47. 47. The End of Mass Media<br />7,109<br />Number of TV Channels<br />~3,000<br />1,686<br />416<br />246<br />93<br />UK<br />Japan<br />US<br />France<br />Germany<br />Source: Europe: Screen Digest 2005, Japan: Wikipedia May 2006, US: US Federal Comms Commission, 2004<br />17 July 2009<br />46<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />China<br />
  48. 48. The KING still reins<br />17 July 2009<br />47<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />
  49. 49. Breadth & Depth across APAC<br />17 July 2009<br />© Microsoft Corporation 2009 | WW CMG<br />Slide 48<br />Total APAC reach : 288 million | 34.1% coverage of all APAC online<br />20.8musers in Japan <br />145m users in China<br />7.1m users in S Korea<br />5.7musers in Taiwan<br />2.4musers in Hong Kong<br />8.5m users in India <br />0.7musers in Philippines<br />4.2musers in Thailand<br />4.3m users in Malaysia<br />8.7musers in Australia<br />1.9musers in Singapore<br />1.5musers in New Zealand<br />Source: ComScore & iResearch : Dec 08<br />
  50. 50. YOU as the editor<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />49<br />
  51. 51. Planning & Creativity<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />50<br />
  52. 52. The Future of Marketing - From Monologue to Dialogue<br />“Media execution &media buying is becoming the new creative in advertising”<br />Source: The Economist Intelligence Unit, September 2006<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />51<br />
  53. 53. Placement vs. Audience<br />Digital Lifestyle<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />52<br />
  54. 54. Future Advertising Scenario<br />Integrated Advertising Campaign with<br />Real-time automated Optimization<br />Based on End Actions/Conversions<br />Based on Brand Metrics<br />Utilizing 100-1,000s of Creative Versions<br />In 100s of Sizes and Formats<br />Personalized and hyper-targeted<br />In multiple Advertising Exchanges and Platforms<br />Online, IPTV, Mobile, Music Players, In-Game, Digital POS, Digital Outdoor<br />With bidded CPA (Cost per Acquisition)<br /><ul><li>Advertising will move from
  55. 55. A fixed Cost to the Business
  56. 56. To a variable Cost of Production</li></ul>17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 53<br />
  57. 57. A Vision of the Digital Future<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />54<br />
  58. 58. 1. Changing Landscape<br />Did you know?<br />Bring the Love back<br />Digital Divide<br />Future Shape of Advertising<br />Summary<br />2. Advertising v3.0<br />Trade Maps<br />New Marketing Model<br />Experiential Marketing<br />Measuring Engagement<br />3. Media & Management<br />Altered Media Universe<br />Role of Media & Agencies<br />Case Study from the Future<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />55<br />
  59. 59. Advertising v3.0 Bloghttp://advertising3.spaces.live.com<br />17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />Slide 56<br />
  60. 60. 17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />57<br />
  61. 61. 17 July 2009<br />© Microsoft Corporation 2009 | CMG | Global Marketing Group<br />58<br />

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