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Interactive Marketing 2.0
                   Lecturer:
  Jürgen Rösger (Interactive Marketing Group)
           Thorsten Dirks (E-Plus)

           University of Mannheim
          Term spring/summer 2010




                                                page 1
Agenda




 1. Introduction

 2. Branding and Consideration

 3. Transaction and Customer Relationship Management

 4. Trends and Perspectives




                                               page 2
Introduction




               page 3
Outline



  1.      Advertising

  2.      Economy of attention

  3.      Advertising market

  4.      Web 1.0 – 3.0

  5.      Social media

  6.      Practical examples


                                 page 4
Definition of advertising



  Advertising …

  … is the placement of announcements and persuasive messages...


  … in any of the mass media by business firms, nonprofit organizations,
     government agencies, and individuals...


  … who seek to inform and / or persuade members of a particular target market
     or audience about their products, services, organizations, or ideas.




                                                        American Marketing Association, 2009



                                                                                      page 5
"You listen to radio, you watch TV, but you use the
internet. You go there for particular content and you
are actively in control. The best way for advertisers
    to play a part in that world is to develop such a
 relevant and engaging experience that consumers
      choose to spend time with that campaign."

                      Adam Good, Marketing Director at Tribal DDB Sydney




                                                               page 6
Outline




  1.      Advertising

  2.      Economy of attention

  3.      Advertising market

  4.      Web 1.0 – 3.0

  5.      Social media

  6.      Practical examples


                                 page 7
The attention-deficit disorder in advertising

Consumersareoverextended!
• Human attentionis a scarcecommodity

• Information overloadoccursdue to:

           • 3,2 milliontvspots per year

           • 776,628 registeredbrands in Germany in 2009
             (50,000 registrations per year)

• Activevocabulary of oneperson: 12,000 words



Consequences of attention-deficitdisorder:
• Despitemarketcrisisgrowingadvertisingbudgets

• Butdecrease of advertisingimpact



Source: gwa.de




                                                           page 8
Significant shift in utilisation of media

          Media utilisation (minutes per day)                                                          Internet utilisation
             Internet          TV              Total                                   %        14-29 years old                 total population
                                                                                     100
                                                                                                                                                86
                                                        623                                                                         76
                                     594                                               80
    600             574                                                                                               59
                                                                                       60
                                                                                                                                                60
                                                                                                                                         49
                                                                                       40
    500
                                                                                                            19             35
                                                                                       20
                                                                                                5
                                                                                               4                 11
                                                                                        0
    400
                                                                                              1996         1999       2002         2005       2008


    300

              220
                               209                189
    200
                                              140

                          96
    100
            44


     0
             2005          2010                  2015

                                           Source:Allensbacher Markt- und Werbeträgeranalysen, AWA 2008.



                                                                                                                                                page 9
Media utilisation affects search behaviour

Information channels during the vehicle buying process


   27%




         18%
                                                                                                            16%
                 15%
                                                                          12%         12%                              12%
                                                                    11%         11%                   11%
                                9%            9%
                                                                                                 8%
                         6%            6%              6%
                                                                                            5%
      -9%            -9%          -3%           -3%         3% 3%     +1%        +1%         +3%        +5%        +12%
                                                                                                                  0%
     News- Television          Brochures Magazines          Radio    Friends/   Other/      Manuf.     Buying     Internet
     paper                                                            Assoc.    Misc.        Info      Guides



          1992          2003


   Source:CNW Research, TNS/CMR, Booz Allen Analysis




                                                                                                                  page 10
Media utilisation affects search behaviour

The Internet‘s rise as a research tool in the vehicle buying process

(% of consumer saying they use the Internet as an information source)




                                                                        Source: Capgemini 2008



                                                                                page 11
Challenging conditions for efficient communication




    Competitive environment                                                    Customer perspective

    • Homogeneity of service                                                   • Individualization of values
      offerings
                                                            Interactive and    • Information overload
    • Decreasing efficiency of                           individual customer   • Instability of consumption
      communication                                          targeting and       patterns
    • Dilemma of differentiation                         treatment is needed
                                                                               • Hybrid consumer behavior
    • Focus: costs




Source: Meffert, Marketing Centrum Münster (MCM), 2002




                                                                                                    page 12
There is only one way to survive

Classic Communication                                     Interactive Communication
Operates from every direction                                        Is bundling all marketing activities
and chases the customer                                                and adjusting them towards the
uncoordinated.                                                       consumer throughout all different
                                                                             communication channels.




                 Cross-linking of all activities to center the consumer and reach him
                               …where he will be positioned in future!




                                                                                            page 13
The Interactive-Tableau helps to structure
communication activities

                                                                  Communication cycle



                                                 Branding   Consideration     Transaction   CRM


                                       PR
 Possible crossmedia integration




                                   PP + Progr.

                                      Print

                                       TV

                                     Online

                                   DM + Mobile

                                     Outlet




                                                                                             page 14
Outline




  1.      Advertising

  2.      Economy of attention

  3.      Advertising market

  4.      Web 1.0 – 3.0

  5.      Social Media

  6.      Practical examples


                                 page 15
Structure of the advertising market




          Manufacturer                                                                Provider
           of products                 Advertising spot      Money                   of contents

                         Advertising                                  Contents,
                            revenue                                   information


                                                 Medium
      Products   Money                                                     Information    Money



                                       Information        Range of media




                                              Consumer




                                                                                                   page 16
The value-added chain involves many players
            (Volume: 30 bill. Euro)                                                                          (10 bill. Euro)
                                                                                        Creative
                        Advertiser                               Clear message          agency
               Marketing                Sales
                                                                                        Creation                  (possible joint development)
                          Budget

                                                                                                                               (20 bill. Euro)
                                                                                                Media agency

                            Margin
     Intermediate                                                                            Creating schematic diagram:
                                                                                             • Where?
                                                                                             • Which media?
                      Mall
                                                                                             • Which formats?

              Offline       Online
                                                                                                 Request /
                                                                                                 Booking
                                                                                                                           “Brings advertising
                                                        Recipient                                                             material closer
                                                                                                Marketer                    towards recipient”
                                                  Recall / Recognition
                                                                                 AIDA
                                                  Attitude towards brand                  TV   Print        Online
                                                                                 SOR
                                                  Intention to Purchase
                                                                                            Checking inventory
                                                                                            Delivering
1
                                                                                                                        (20 bill. Euro)
    Source: Statistisches Bundesamt (BIP 2003)



                                                                                                                                 page 17
Advertising market in Germany

    Total expenditure 2008: 80.9 bill. Euro (3.25% of GDP)




            Media with direct
            components                              %
            (exhibitions, couponing,
                                                                     %
            mobile marketing, etc.)
                                                                               Classical media
                                                                               (TV, radio, ads, etc.)


            Direct marketing
            media                                       %
            (mail/email marketing,
            phone marketing, etc.)



                       Almost 2/3 spent for direct marketing or media with direct elements

Source: MRSC/TNS Infratest, Deutsche Post 2009



                                                                                            page 18
Net-advertising revenues of advertising media

Media                       2005        %          2006        %          2007        %          2008          %

Daily newspaper               4.476         -0.6     4.532          1.3     4.567          0.8     4.373            -4.2

TV                            3.939          1.8     4.114          4.7     4.155          1.0     4.035            -2.9

Advertising via mail          3.398           0      3.318         -2.3     3.347          0.9     3.291            -1.7

Advertising paper             1.898          3.4     1.943          2.4     1.971          1.4     2.008            1.9

Consumer magazine             1.791         -2.6     1.855          3.6     1.822         -1.8     1.693            -7.1

Register / directory          1.197          0.1     1.198          0.1     1.214          1.3     1.224            0.9

Professional journal           902           4.3      956           6.0     1.016          6.3     1.031            1.5

Outdoor advertising            769           6.8      787           2.4      820           4.2      805             -1.8

Online                         332          22.5      495          49.1      689          39.2      754             9.4

Radio                          663           7.4      680           2.5      743           9.2      711             -4.3

Weekly / sunday newspaper      252           5.6      260           2.9      269           3.7      265             -1.5

Newspaper supplements              91        1.1          89       -1.2          89       -0.4          86          -3.0

Movie                          132          -9.8      117      -11.3         106          -9.6          76         -27.8

Total                        19.833          1.3    20.350          2.6    20812           2.3    20.357            -2.2

 Source: ZAW, 2009




                                                                                                         page 19
Classical media and online marketer

  TV marketer




                   RTL, VOX, n-tv, Super RTL                            Sat.1, ProSieben, Kabel 1, N24                             ARD



  Print marketer




                                                                                          Focus, Bunte, Chip, Playboy

Stern, Gala, Capital, GEO, Brigitte Woman      Fernsehwoche, TV-Movie                                                   Bild, Hörzu, Die Welt, Computerbild
                                                                                           TV-Spielfilm, Max, Cinema




  Online marketer




                                                                                                                                             page 20
Outline




  1.      Advertising

  2.      Economy of attention

  3.      Advertising market

  4.      Web 1.0 – 3.0

  5.      Social media

  6.      Practical examples


                                 page 21
Web 1.0


                  Web 1.0
   Strategic positioning
   • The Web as further distribution
     channel of innovative firms
                                                                                   Software
                                                                Databases
                                                                                   solutions
   PUSH principle
   •   Impression
   •   Consumption
   •   Value expert judgement
   •   Personal judgement
   •   Pre-structured
                                                                             B2x
   Core competences
   •   Software based solutions
   •   User is just a consumer
   •   Few pages in the centre of attention
   •   Solely company related motivation
       concerning the further development of                    Accounting           Sales
       applications and contents                                 systems           platforms



  Source: Zentrum für angewandte Informatik, Universität Köln(2006)



                                                                                      page 22
Then: New applications

            Personal
                                                Blogs                        Video sharing               Social networks
           homepages
                                                                                                                                    …



      • 22% of the online-            • ~35 mill. blogs are              • Over 100 mill. videos      • MySpace possesses
        teens have an own               existing and the                   regarded – per day           more than 100 mill.
        homepage (US)                   amount is doubling               • Growth in the first half     users, 15 mill. logins
                                        every six months                   of 2006 already about        daily and is growing
      • 32% of the online-                                                                              about 240„000 users a
        teens are providing           • Posting-volume                     300%
                                                                                                        day.
        input for foreign               accounts for 1.6 mill.
        homepages or blogs              blogs a day                                                   • As measured by
                                                                                                        visits, MySpace is
                                      • 19% of the online-                                              ranked shortly behind
                                        teens have a blog and                                           Yahoo, but
                                        38% are reading blogs                                           significantly in front of
                                        (US)                                                            MSN Microsoft, Time
                                                                                                        Warner (incl.
                                      • 7% of the adult                                                 AOL), eBay or Google
                                        Internet users have a
                                        blog, 27% are reading
                                        those (US)



     Source: Pew Internet & American Life Project, Booz Allen Analysis



                                                                                                                                page 23
Web 2.0


                  Web 2.0
   Strategic positioning
   • The Web as platform for an
     interactive (social) dialogue
                                                                                  Ad-games
     and commerce


   PULL principle                                                      Blogs                 Podcasts
   •   Relevance
   •   Participation
   •   Value end-user judgement & opinion
   •   Reputation / referral
                                                                                               Online-
                                                                       IP TV
   •   Adaptive / usage-based structures                                                      advertising

   Core competences
   •   Services, not software applications
   •   Principle of participation& interaction
                                                                Online auctions              Peer-to-peer
   •   Faith in user as co-developer
   •   Utilisation of collective intelligence
   •   Creation of communities etc.                                                Avatars



  Source: Zentrum für angewandte Informatik, Universität Köln (2006)



                                                                                                  page 24
Web 3.0

                Web 3.0
  Strategic positioning
  • The Web links and interprets
    knowledge for every single user
    context-dependent                                           Offline

  Antizipation principle
  •   Semantic cross-linking
  •   Expert systems
  •   Software agents
  •   Shopping robots                                       Context-relevant
                                                           recommendations
                                                               for users
  Core competences
  • Intelligent cross-linking of knowledge from
    the online-, offline and mobile world
  • Interpretation of knowledge in terms of the
    chronological, spatial and action-specific    Online                       Mobile
    user-context
  • Support of individual (buying-) decisions
    through context-dependent generated
      recommendations



 Source: Soziologische Beratung (2008)


                                                                                  page 25
Smart Personal Assistant

 SPA is a web 3.0 portal solution that integrates web 2.0
 and semantic web technologies:


 You can simultaneously check:
 • restaurants, movies
 • clubs, weather forecast
 • and availability of your friends
   to plan your saturday evening.




                                                            page 26
Outline




  1.      Advertising

  2.      Economy of attention

  3.      Advertising market

  4.      Web 1.0 – 3.0

  5.      Social media

  6.      Practical examples


                                 page 27
What is social media?




                        Source: www.newmediachatter.com



                                                 page 28
Benefits of social media

                 Company                                                              Customer

    Right in the middle instead of just
                   near by

   Company as creator, moderator and                                       Product comparison, rating and
    participant of the social exchange                                               benchmarking
   Quick and direct opportunities of action
    for companies
   Identification of trends and perspectives


    Acquisition of unbiased customer                                      Exchange of experiences with other
                information                                                              users

     Customer statements are not biased due                                   Active generation of information via
          to questioning of the company                                     discussions and systematic questioning




                       Social Media as a highly credible way of communication

   Other customers are more credible than employees of the enterprise
   Positive effects of a successful social media strategy:
            Customer retention, satisfaction, identification, enhancement of attention and increase in sales



                                                                                                         page 29
Concrete opportunities of action for companies


   1. Reactive customer communication
      Responses to questions and concerns
    Increase of customer satisfaction, creation of a positive image


   2. Initiation of discussions
      Systematic placement of topics allows conclusions about customer behavior and attitude
    Increase of attention, support of strategic aims like increase in sales


   3. Call for interactivity
      Advertising for contests or lotteries via social communities or profiles
    Increase of attention and identification with product


   4. Active integration of customers
      E.g. participation of customers as moderators within official forums
    Increase of brand acceptance and trust in the brand


   5. Consistent social media monitoring
      E.g. as early-warning system. What distracts customers from (re-)purchasing?
    Fast possibilities to respond / improvement of customer orientation




                                                                                               page 30
Example (Service-Development)




                                page 31
Example (Product-Development)




                                page 32
Example (CSR)




                page 33
Fan communities within social media
How many internet users can be addressed by DAX enterprises via Facebook, Twitter and Youtube?

               Adidas                                                                            4,271,763

      Deutsche Telekom                                                   2,301,850

                 BMW                                   1,340,234

           Volksw agen                   581,494

               Daimler               396,567

              Siemens               326,125
                                                         Infineon 634
                   Eon       138,176
                                                       Beiersdorf 495
                  SAP       90,927
                                                           Linde 224
             Lufthansa     46,190
                                                        Salzgitter 160
        Deutsche Bank     21,978
                                                   Fresenius Med. 110
         Deutsche Post    14,462

                Bayer     8,808                    Commerzbank     23

                  RWE     8,170                    Fresenius Med. 13

                Henkel    7,324                             K+S 0

                BASF      6,948                           Merck 0

        Deutsche Börse    3,674
                                                           Metro 0
                Allianz   1,392
                                                       Munich Re 0
         ThyssenKrupp     777

                  MAN     760
                                                                                                  Source: Vierpartner, 2009.


                                                                                                     page 34
Outline




  1.      Advertising

  2.      Economy of attention

  3.      Advertising market

  4.      Web 1.0 – 3.0

  5.      Social media

  6.      Practical examples


                                 page 35
Example - Revlon (US-Case)



  Challenge:

      Create a holistic IM idea that will…


      1. Leverage limited investment
      2. Build a product “story”
      3. Make the magic of Hollywood
         accessible to consumers
      4. Let intrinsic “interact” with the brand


  Solution:

      Leverage Time Warner‟s most relevant
      entertainment assets to create “Revlon on
      the Red Carpet” - a high profile and
      engaging 360 degree experience



                                                   page 36
Example - Revlon (US-Case)


  All media involved
    and integrated




                             page 37
Example - Revlon (US-Case)



   Return on objective
                                           Excellent
   Consumers engaged with Revlon on the     results
   Red Carpet…                            in the end!

   • Users spend over 4 minutes on
     average with online custom content
   • Surpassed entry goals by 300%
   • Achieved 33% opt-in rate for
     remarketing




                                                 page 38
Example – MINI


            MINI@IAA                   MINI@the streets




     Take a picture of you in the   Write a personal message on a
     MINI and choose a celebrity     special microsite, get a RFID
          as your co-driver.        chip and then cross along the
                                        billboard – here is your
                                               message!


                                                              page 39
Example – MINI


     MINI online
  Car configuration
  Merchandise shop
       Games
         …




                      page 40
Example – MINI




 Meet MINI




             MINI Challenge   MINI to read




                                        page 41
Example – Red Bull


                       Sport -
                       events
                        and
                     sponsoring




                                  page 42
Example – Red Bull


    Fun and lifestyle




                        page 43

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Interactive Marketing 2.0

  • 1. Interactive Marketing 2.0 Lecturer: Jürgen Rösger (Interactive Marketing Group) Thorsten Dirks (E-Plus) University of Mannheim Term spring/summer 2010 page 1
  • 2. Agenda 1. Introduction 2. Branding and Consideration 3. Transaction and Customer Relationship Management 4. Trends and Perspectives page 2
  • 3. Introduction page 3
  • 4. Outline 1. Advertising 2. Economy of attention 3. Advertising market 4. Web 1.0 – 3.0 5. Social media 6. Practical examples page 4
  • 5. Definition of advertising Advertising … … is the placement of announcements and persuasive messages... … in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals... … who seek to inform and / or persuade members of a particular target market or audience about their products, services, organizations, or ideas. American Marketing Association, 2009 page 5
  • 6. "You listen to radio, you watch TV, but you use the internet. You go there for particular content and you are actively in control. The best way for advertisers to play a part in that world is to develop such a relevant and engaging experience that consumers choose to spend time with that campaign." Adam Good, Marketing Director at Tribal DDB Sydney page 6
  • 7. Outline 1. Advertising 2. Economy of attention 3. Advertising market 4. Web 1.0 – 3.0 5. Social media 6. Practical examples page 7
  • 8. The attention-deficit disorder in advertising Consumersareoverextended! • Human attentionis a scarcecommodity • Information overloadoccursdue to: • 3,2 milliontvspots per year • 776,628 registeredbrands in Germany in 2009 (50,000 registrations per year) • Activevocabulary of oneperson: 12,000 words Consequences of attention-deficitdisorder: • Despitemarketcrisisgrowingadvertisingbudgets • Butdecrease of advertisingimpact Source: gwa.de page 8
  • 9. Significant shift in utilisation of media Media utilisation (minutes per day) Internet utilisation Internet TV Total % 14-29 years old total population 100 86 623 76 594 80 600 574 59 60 60 49 40 500 19 35 20 5 4 11 0 400 1996 1999 2002 2005 2008 300 220 209 189 200 140 96 100 44 0 2005 2010 2015 Source:Allensbacher Markt- und Werbeträgeranalysen, AWA 2008. page 9
  • 10. Media utilisation affects search behaviour Information channels during the vehicle buying process 27% 18% 16% 15% 12% 12% 12% 11% 11% 11% 9% 9% 8% 6% 6% 6% 5% -9% -9% -3% -3% 3% 3% +1% +1% +3% +5% +12% 0% News- Television Brochures Magazines Radio Friends/ Other/ Manuf. Buying Internet paper Assoc. Misc. Info Guides 1992 2003 Source:CNW Research, TNS/CMR, Booz Allen Analysis page 10
  • 11. Media utilisation affects search behaviour The Internet‘s rise as a research tool in the vehicle buying process (% of consumer saying they use the Internet as an information source) Source: Capgemini 2008 page 11
  • 12. Challenging conditions for efficient communication Competitive environment Customer perspective • Homogeneity of service • Individualization of values offerings Interactive and • Information overload • Decreasing efficiency of individual customer • Instability of consumption communication targeting and patterns • Dilemma of differentiation treatment is needed • Hybrid consumer behavior • Focus: costs Source: Meffert, Marketing Centrum Münster (MCM), 2002 page 12
  • 13. There is only one way to survive Classic Communication Interactive Communication Operates from every direction Is bundling all marketing activities and chases the customer and adjusting them towards the uncoordinated. consumer throughout all different communication channels. Cross-linking of all activities to center the consumer and reach him …where he will be positioned in future! page 13
  • 14. The Interactive-Tableau helps to structure communication activities Communication cycle Branding Consideration Transaction CRM PR Possible crossmedia integration PP + Progr. Print TV Online DM + Mobile Outlet page 14
  • 15. Outline 1. Advertising 2. Economy of attention 3. Advertising market 4. Web 1.0 – 3.0 5. Social Media 6. Practical examples page 15
  • 16. Structure of the advertising market Manufacturer Provider of products Advertising spot Money of contents Advertising Contents, revenue information Medium Products Money Information Money Information Range of media Consumer page 16
  • 17. The value-added chain involves many players (Volume: 30 bill. Euro) (10 bill. Euro) Creative Advertiser Clear message agency Marketing Sales Creation (possible joint development) Budget (20 bill. Euro) Media agency Margin Intermediate Creating schematic diagram: • Where? • Which media? Mall • Which formats? Offline Online Request / Booking “Brings advertising Recipient material closer Marketer towards recipient”  Recall / Recognition AIDA  Attitude towards brand TV Print Online SOR  Intention to Purchase  Checking inventory  Delivering 1 (20 bill. Euro) Source: Statistisches Bundesamt (BIP 2003) page 17
  • 18. Advertising market in Germany Total expenditure 2008: 80.9 bill. Euro (3.25% of GDP) Media with direct components % (exhibitions, couponing, % mobile marketing, etc.) Classical media (TV, radio, ads, etc.) Direct marketing media % (mail/email marketing, phone marketing, etc.) Almost 2/3 spent for direct marketing or media with direct elements Source: MRSC/TNS Infratest, Deutsche Post 2009 page 18
  • 19. Net-advertising revenues of advertising media Media 2005 % 2006 % 2007 % 2008 % Daily newspaper 4.476 -0.6 4.532 1.3 4.567 0.8 4.373 -4.2 TV 3.939 1.8 4.114 4.7 4.155 1.0 4.035 -2.9 Advertising via mail 3.398 0 3.318 -2.3 3.347 0.9 3.291 -1.7 Advertising paper 1.898 3.4 1.943 2.4 1.971 1.4 2.008 1.9 Consumer magazine 1.791 -2.6 1.855 3.6 1.822 -1.8 1.693 -7.1 Register / directory 1.197 0.1 1.198 0.1 1.214 1.3 1.224 0.9 Professional journal 902 4.3 956 6.0 1.016 6.3 1.031 1.5 Outdoor advertising 769 6.8 787 2.4 820 4.2 805 -1.8 Online 332 22.5 495 49.1 689 39.2 754 9.4 Radio 663 7.4 680 2.5 743 9.2 711 -4.3 Weekly / sunday newspaper 252 5.6 260 2.9 269 3.7 265 -1.5 Newspaper supplements 91 1.1 89 -1.2 89 -0.4 86 -3.0 Movie 132 -9.8 117 -11.3 106 -9.6 76 -27.8 Total 19.833 1.3 20.350 2.6 20812 2.3 20.357 -2.2 Source: ZAW, 2009 page 19
  • 20. Classical media and online marketer TV marketer RTL, VOX, n-tv, Super RTL Sat.1, ProSieben, Kabel 1, N24 ARD Print marketer Focus, Bunte, Chip, Playboy Stern, Gala, Capital, GEO, Brigitte Woman Fernsehwoche, TV-Movie Bild, Hörzu, Die Welt, Computerbild TV-Spielfilm, Max, Cinema Online marketer page 20
  • 21. Outline 1. Advertising 2. Economy of attention 3. Advertising market 4. Web 1.0 – 3.0 5. Social media 6. Practical examples page 21
  • 22. Web 1.0 Web 1.0 Strategic positioning • The Web as further distribution channel of innovative firms Software Databases solutions PUSH principle • Impression • Consumption • Value expert judgement • Personal judgement • Pre-structured B2x Core competences • Software based solutions • User is just a consumer • Few pages in the centre of attention • Solely company related motivation concerning the further development of Accounting Sales applications and contents systems platforms Source: Zentrum für angewandte Informatik, Universität Köln(2006) page 22
  • 23. Then: New applications Personal Blogs Video sharing Social networks homepages … • 22% of the online- • ~35 mill. blogs are • Over 100 mill. videos • MySpace possesses teens have an own existing and the regarded – per day more than 100 mill. homepage (US) amount is doubling • Growth in the first half users, 15 mill. logins every six months of 2006 already about daily and is growing • 32% of the online- about 240„000 users a teens are providing • Posting-volume 300% day. input for foreign accounts for 1.6 mill. homepages or blogs blogs a day • As measured by visits, MySpace is • 19% of the online- ranked shortly behind teens have a blog and Yahoo, but 38% are reading blogs significantly in front of (US) MSN Microsoft, Time Warner (incl. • 7% of the adult AOL), eBay or Google Internet users have a blog, 27% are reading those (US) Source: Pew Internet & American Life Project, Booz Allen Analysis page 23
  • 24. Web 2.0 Web 2.0 Strategic positioning • The Web as platform for an interactive (social) dialogue Ad-games and commerce PULL principle Blogs Podcasts • Relevance • Participation • Value end-user judgement & opinion • Reputation / referral Online- IP TV • Adaptive / usage-based structures advertising Core competences • Services, not software applications • Principle of participation& interaction Online auctions Peer-to-peer • Faith in user as co-developer • Utilisation of collective intelligence • Creation of communities etc. Avatars Source: Zentrum für angewandte Informatik, Universität Köln (2006) page 24
  • 25. Web 3.0 Web 3.0 Strategic positioning • The Web links and interprets knowledge for every single user context-dependent Offline Antizipation principle • Semantic cross-linking • Expert systems • Software agents • Shopping robots Context-relevant recommendations for users Core competences • Intelligent cross-linking of knowledge from the online-, offline and mobile world • Interpretation of knowledge in terms of the chronological, spatial and action-specific Online Mobile user-context • Support of individual (buying-) decisions through context-dependent generated recommendations Source: Soziologische Beratung (2008) page 25
  • 26. Smart Personal Assistant SPA is a web 3.0 portal solution that integrates web 2.0 and semantic web technologies: You can simultaneously check: • restaurants, movies • clubs, weather forecast • and availability of your friends to plan your saturday evening. page 26
  • 27. Outline 1. Advertising 2. Economy of attention 3. Advertising market 4. Web 1.0 – 3.0 5. Social media 6. Practical examples page 27
  • 28. What is social media? Source: www.newmediachatter.com page 28
  • 29. Benefits of social media Company Customer Right in the middle instead of just near by  Company as creator, moderator and Product comparison, rating and participant of the social exchange benchmarking  Quick and direct opportunities of action for companies  Identification of trends and perspectives Acquisition of unbiased customer Exchange of experiences with other information users Customer statements are not biased due Active generation of information via to questioning of the company discussions and systematic questioning Social Media as a highly credible way of communication  Other customers are more credible than employees of the enterprise  Positive effects of a successful social media strategy: Customer retention, satisfaction, identification, enhancement of attention and increase in sales page 29
  • 30. Concrete opportunities of action for companies 1. Reactive customer communication Responses to questions and concerns  Increase of customer satisfaction, creation of a positive image 2. Initiation of discussions Systematic placement of topics allows conclusions about customer behavior and attitude  Increase of attention, support of strategic aims like increase in sales 3. Call for interactivity Advertising for contests or lotteries via social communities or profiles  Increase of attention and identification with product 4. Active integration of customers E.g. participation of customers as moderators within official forums  Increase of brand acceptance and trust in the brand 5. Consistent social media monitoring E.g. as early-warning system. What distracts customers from (re-)purchasing?  Fast possibilities to respond / improvement of customer orientation page 30
  • 33. Example (CSR) page 33
  • 34. Fan communities within social media How many internet users can be addressed by DAX enterprises via Facebook, Twitter and Youtube? Adidas 4,271,763 Deutsche Telekom 2,301,850 BMW 1,340,234 Volksw agen 581,494 Daimler 396,567 Siemens 326,125 Infineon 634 Eon 138,176 Beiersdorf 495 SAP 90,927 Linde 224 Lufthansa 46,190 Salzgitter 160 Deutsche Bank 21,978 Fresenius Med. 110 Deutsche Post 14,462 Bayer 8,808 Commerzbank 23 RWE 8,170 Fresenius Med. 13 Henkel 7,324 K+S 0 BASF 6,948 Merck 0 Deutsche Börse 3,674 Metro 0 Allianz 1,392 Munich Re 0 ThyssenKrupp 777 MAN 760 Source: Vierpartner, 2009. page 34
  • 35. Outline 1. Advertising 2. Economy of attention 3. Advertising market 4. Web 1.0 – 3.0 5. Social media 6. Practical examples page 35
  • 36. Example - Revlon (US-Case) Challenge: Create a holistic IM idea that will… 1. Leverage limited investment 2. Build a product “story” 3. Make the magic of Hollywood accessible to consumers 4. Let intrinsic “interact” with the brand Solution: Leverage Time Warner‟s most relevant entertainment assets to create “Revlon on the Red Carpet” - a high profile and engaging 360 degree experience page 36
  • 37. Example - Revlon (US-Case) All media involved and integrated page 37
  • 38. Example - Revlon (US-Case) Return on objective Excellent Consumers engaged with Revlon on the results Red Carpet… in the end! • Users spend over 4 minutes on average with online custom content • Surpassed entry goals by 300% • Achieved 33% opt-in rate for remarketing page 38
  • 39. Example – MINI MINI@IAA MINI@the streets Take a picture of you in the Write a personal message on a MINI and choose a celebrity special microsite, get a RFID as your co-driver. chip and then cross along the billboard – here is your message! page 39
  • 40. Example – MINI MINI online Car configuration Merchandise shop Games … page 40
  • 41. Example – MINI Meet MINI MINI Challenge MINI to read page 41
  • 42. Example – Red Bull Sport - events and sponsoring page 42
  • 43. Example – Red Bull Fun and lifestyle page 43