The document discusses the evolving landscape of digital marketing, emphasizing the importance of adapting to consumer preferences and integrating technology with marketing strategies. It highlights the shift from passive consumption of media to active participation and the need for speed and usability in digital platforms. Additionally, it outlines a proposed organizational structure for effective digital marketing that combines marketing and technology to better meet consumer needs.

1. The search for the optimal digital structure
Toon Diependaele
6th of June 2006

2. Introduction
 Can anybody hear me
– A view on the current marketing field
 The new reality
– Quick and simple answers
 How do we respond
– The change management
 The view on a possible organization

3. Can anybody hear me ?

4. Can anybody hear me ? The touchpoints
breakfast commuting time at work back home weekend
Radio Posters Web Mail Posters
Newspaper Radio Email Web POS
TV Newspapers Mobile Console Web
Mobile Radio DVD Email
PDA Mobile
Email
TV

5. Can anybody hear me ? The consumption
We spend 5% more time consuming
media today than we did five years ago
In that time, the number of commercial messages
we are exposed to on a daily basis has increased 47%
Source: Henley Centre

6. Can anybody hear me: the brand perception
 6% of a newspaper’s “readers” notice the average display ad.
 6% of a station’s “listeners” are able to spontaneously recall a heavy weight
radio campaign.
 18% of admitted “audience” see no cinema advertising.
 25% of people who have “seen” a poster 14 times do not recognize it when
visually prompted.
Sources: Newspaper Society, RAB, Carlton Screen, POSTAR

7. Can anybody hear me: Life after the 30 sec spot.
TV sales effect
55
50 +5.9% +3.9%
45
% Buys 'Covered' by ad exposure
40
35 32,7
30
25,0
25
20
15
10
5
0
1999 2001
Source: tvSpan

8. Can anybody hear me: the internet
Total European Internet Penetration
80%
70%
60% – Current European
internet penetration
50% ranges from 20% - 60%
40%
– Forecasts for 2006
30% range from 60% to 70%
20%
10%
0%
2000 2001 2002 2003 2004 2005 2006
Source: Forrester

9. The new reality

10. The multi channel consequence: consumer control
 More options demand more active
choices: whether they like it or not
 Consumers are sophisticated
editors of media channels & brand
messages: they create the
messages ….
 They only take notice when
something is relevant and engaging
 Once engaged, they are willing to
give their time to brands – in return
for reward
 From passive media consumption
to active media participation

11. Multi-channel consumers & multi-channel consumption
 People aren’t just consuming media across multiple
channels…they’re doing business
 From one way to many to many pro-active communication

12. Need for speed
 Speed:
– users will not wait more than 30 seconds for a web site to load.
 Loyalty
– almost 90 percent of users will simply move to a rival site if their
original destination is unavailable or not clear.
David Neal, IT Week 28 Apr 2006

13. Technology is a must
 Recent past: technology for technology's sake
 Today:
– Users' expectations are high
– Need for enriching sites with technology that makes them easier to
use, more attractive and [easier to] syndicate
 75% of online campaigns are hit by site failures2 (Scivisum)
Phil Muncaster, IT Week 11 May 2006

14. Customer expectation
 Businesses must be consumer-centric to survive
Marketers must understand their consumers’ media preferences…
…and make media selection on this basis
 Businesses must understand their consumers’
channel preferences…
…and be open for business within these channels
The internet is a key consumer channel

15. The current answer

16. The facts
 Sir Martin Sorrell: In no position to react properly to the rise of
digital media.1
 Digital marketing is being recuperated by marketing to
legitimate the multi-channel strategy , but they miss the
technology knowledge.
 Life after the 30 second spot.
Philip Buxton – Revolution blog

17. The Sony Ericsson example
Phase 1 Phase 2 Phase 3 Phase 4
Disorganization Legacy organization Birth of the Digital A new era of Digital
Marketing Marketing
organization (in development)
Old SMO and web
team from global
Legacy structure marketing are Going forward, the
from Ericsson combined into one challenge is to
Sony Ericsson global established: achieve more and
organization for
web presence better integration.
-Global marketing centralized digital
launched by JV
(main internet marketing. Establish strategic
team, before
organizational stakeholder) Sony Ericsson was and tactical functions
structure established one of the first global that work across
- SMO (technical both (traditionally)
solutions to support companies to
pioneer this marketing and
web initiatives technical functions.
organizational design
- but now many
others are following
suit (Nike, BBC,
Canon…)
Differentiation

18. A structure for success

19. Structure for Digital excellence
The way in which digital activity fits
into the organization, and
communicates with it, directly
affects the success.
 If Web development isn’t driven by
an alignment of sustainable
technology, user-driven content and
business-driven goals, the corporate
digital presence will either fail to
meet your business goals, be
troubled by expensive technology
challenges or simply alienate your
core users
Losability vs Usability, G>A> Buchholz, July 11 2005
Digital Web Magazine

20. Basic principles
 Create close integration in one team between
marketing and technology to address the core
target audiences needs.
– Support for marketing programs towards End B2C & B2B
consumers
– Support for marketing initiatives towards
customers (dealers, retailers, fleets, …)
Digital
 Create a structure where decision on strategy, Marketing
budget and platform are taken by one
IS/IT Brand
accountable team.
 Make a distinction between Critical Digital
objectives and platform overall objectives

21. Key roles and responsibilities
 Steering committee
– The overall corporate strategy for Digital covering Platform and Marketing
for Internet and Extranet is defined and signed off by the “Steering
Committee”.
 IS/IT
– Owns the platform
– Manage the platform suppliers and vendors
 Marketing
– Owns the overall brand strategy
 Digital marketing
– Develop and create and owns the Digital Marketing strategy
– Interface in project development towards brands.

22. Specific roles and responsibilities
 Digital marketing – market management
– Plan and create or co-ordinate digital materials
– Develop and implement digital marketing plans
– Education of local stakeholders through brand channels
– Solicit/gather demand & change requests
 Digital marketing – service management
– Plan, execute & own Content management & co-ordination
– Translation management
– Reporting and statistics provisioning
 Digital marketing – project management & development
– Execute & own development projects of agreed requirements
– Deliver within agreed budget, on-time and on-quality