New Media & Marketing in the 21st  century…starting with a downturnDr Ian FenwickSasin Graduate Institute of Business AdministrationAsiaSoft, July 15, 2009
frogs jump…will you?
what is digimarketing?
NOT  digital marketinghttp://en.wikipedia.org/wiki/File:The_Thumbs-up_position.jpg, Steven H. Keys and http://www.keysphotography.com, http://en.wikipedia.org/wiki/File:OK_Sign.jpg, http://en.wikipedia.org/wiki/File:The_gesture02.jpg, Licensed under Creative Commons Attribution ShareAlike 2.0 License http://www.filmstudion.se/This_01.jpg
definitely NOT  digital marketinghttp://en.wikipedia.org/wiki/File:The_Thumbs-up_position.jpg, Steven H. Keys and http://www.keysphotography.com, http://en.wikipedia.org/wiki/File:OK_Sign.jpg, http://en.wikipedia.org/wiki/File:The_gesture02.jpg, Licensed under Creative Commons Attribution ShareAlike 2.0 License http://www.filmstudion.se/This_01.jpg
“      Digital Marketing, digimarketing, is the evolution of marketing.It happens when the majority, or totality, of a company’s marketing uses digital channels.
are you doing digital marketing right now?
“…the future is already here. It's just not very evenly distributed.WilliamGibson
123opportunitydigital mediadifference
31opportunity2
why a digimarketing opportunity?under spent
Internet penetration 20071.4 billion +www.internetworldstats.com/http://en.wikipedia.org/wiki/Image:Internet_users_en_2007.PNG
% Advertising Dollars Spent Online% Consumer Time Spent Onlinemarketing lagSource:Neo@Ogilvy
Asia 40%China 253 million19%Internet penetration 20071.4 billion +www.internetworldstats.com/http://en.wikipedia.org/wiki/Image:Internet_users_en_2007.PNG
Internet users, end 2008>Top 10 DevelopedMarketsTop 10 Emerging MarketsUSA, Japan, Germany, UK, France, Italy, Spain, Canada, S Korea, AustraliaBrazil, Russia, India, China, Mexico, Turkey, Indonesia, Iran, Poland, Saudi ArabiaTechnology/Internet Trends, Mary Meeker , presentation at Web 2.0 Summit, Nov 5 2008,
Thailand: 	13m 20%Bangkok: 	biz decision-makers 80%			top management 93% Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008
Hours/week, upmarket adults,                Bangkokhours/ week14Internet (excl. email)1.1%19TVMagazinesNewspapers54%5% of total mktg spend Thailand, 200818%5Magazines6%Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook
Hours/week, upmarket adults,                Bangkok25-34 years old,hours/ week17Internet (excl. email)Internet (excl. email)1.1%17TVTVNewspapersMagazines54%4% of total mktg spend Thailand, 200818%56%Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook
1.1% of marketing funds get spent on internet over 5 x more spent on cinemaover 6 x more spent on outdooralmost 7 x more spent on radioover 16 x more spent on newspapersalmost 50 x more spent on TVSource:  GroupM – 2008 Media Outlook
mis-allocation of resources
why a digimarketing opportunity?under spentthe future
digital will predominate
?
“      it is not the strongest of the species that survives… nor the most intelligent…it is the one most adaptable to change
easier  to learn if you start early…and you never forgetSource: www.stockphotos.com
why a digimarketing opportunity?under spentthe futuretrackable
“    Half the money I spend on advertising is wasted; the trouble is I don't know which halfJohn Nelson Wanamaker (1838 –1922) From the George Grantham Bain collection at the Library of Congress. According to the library, there are no known restrictions on the publication of these photos. http://en.wikipedia.org/wiki/File:Johnny-Wanamaker2.jpg
Best Practices for Optimizing Web Advertising Effectiveness, R E Bruner and M Gluck, Doubleclick May 2006http://www.doubleclick.com/insight/gallery/examples/dolby-ocean.asphttp://www.doubleclick.com/insight/gallery/examples/dolby-storm.asp
Cost per ClickCost per Action
why a digimarketing opportunity?under spentthe futuretrackable
31opportunity2
32digital media1
how are digital media different?common language
Quick Response (QR) Code for North West Airlines
Source: Ogilvy, Japan
Oglivy: Japan
Source: Ogilvy, Japan
how are digital media different?common language new media model
To find something comparable, you have to go back 500 years to the printing press, the birth of mass media….Technology is shifting power away from the editors, the publishers, the establishment, the media elite. Now it’s the people who are taking control “His Space,” Spencer Reiss July 2006
Traditional Media Modelmodest returns to creatorsexpensive channel, production & filtering$$$eyeballscreativespublishers, editorsbookstores, news stands, TV/radio stationsconsumers
Consumers Generate ContentInternet PublicationInternet Distributionmodest returns to creatorsnear free channel, free peer filteringmodest returns to creatorsConsumers            Generate ContentNew Media Model
Posted Nov 20, 20031 million+ downloads in 6 weeks
Perez Hilton paid circulation2007 <4 million1.7 m unique visitors (US only)33-48 m page-views (May 2007)ComScore, Nielsen NetRatingshttp://perezhilton.com/?p=2601, http://gawker.com/news/welcome-to-the-internet/the-truth-about-perez-hiltons-traffic-276369.php
how are digital media different?common language new media modelmobile
World population?6.6 b1.4 bInternet users?1.3 bLandline phones?1.4 bCredit cards?1.5 bTV sets?3.3 bMobile phone subscribers?61.9mThailand?http://www.itu.int/ITU-D/ict/newslog/Indonesia+Overtakes+Japan+To+Take+Third+Place+In+Asia+Subscriber+Rankings.aspxCommunities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore
1st SMS sent December 3, 1992 how many sent in 2007?http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research
1st SMS sent December 3, 1992 how many sent in 2007?5,000,000,000 + http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research
1st SMS sent December 3, 1992 how many sent in 2007?5,000,000,000 + dailyalmost 2 trillion p.a.http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research
1st SMS sent December 3, 1992 how many sent in 2007?5,000,000,000 + % sent in Asia Pacific?http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research
78.9%http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner study
how does your website look on mobiles?
how are digital media different?common language new media modelmobileunique
Canon Rebel 3503 years old, #560151117
collect data, drop by droppersonalizecontent
Augmented Realityhttp://www.mobvis.org/demos.htm
32digital media1
3difference12
4 P’s of marketingPromotionPlacePriceProduct
4 P’s of digimarketingclear opt-in
easy opt-out
customer-chosen content & frequency
contextual relevancePermission
claims 10 million downloads 240,000 per weekwww.Sanook.com
Source: OgilvyOne, Hong Kong, 2008, The HyperFactory, XS2TheWorld
Participationclear opt-in
easy opt-out
customer-chosen content & frequency
contextual relevancePermission
Source: OgilvyOne, Thailand
MK GAME
read blogs?
Readingblogs % of active internet users (using internet at least every other day), 16-54 years old, March 200870%50%read at least weeklyPower to the People Social Media Tracker, Wave 2, Universal McCann, 2008, surveyed 17,000 internet users (using everyday or every-other-day, 16-54 year-olds) in 29 countries
Started my own blog % of active internet users 16-54 years old, March 200835%21%write at least weeklyPower to the People Social Media Tracker, Wave 2, Universal McCann, 2008, surveyed 17,000 internet users (using everyday or every-other-day, 16-54 year-olds) in 29 countries
Digital respect
belong to a social networking site?
social networkswww.facebook.comwww.myspace.comwww.mixi.jpwww.cyworld.co.kr
social networkswww.facebook.comwww.myspace.comwww.mixi.jpwww.cyworld.co.kr
social networkswww.facebook.comwww.myspace.comwww.mixi.jpwww.cyworld.co.kr
social networkswww.facebook.comwww.myspace.comwww.mixi.jpwww.cyworld.co.kr
Facebook200 mNov 2008132 m  unique visitors, June 2008world’s  fastest growing  social networking sitewww.facebook.com  www.myspace.com www.mixi.jp www.cyworld.co.kr 9http://www.techcrunch.com/2008/08/12/facebook-is-not-only-the-worlds-largest-social-network-it-is-also-the-fastest-growing/http://www.briansolis.com/2009/03/twitter-and-social-networks-usher-in/
Facebook200 mNov 20081/3 of global audience is 35-49; 1/4 is over 50 www.facebook.com  www.myspace.com www.mixi.jp www.cyworld.co.kr 9http://www.techcrunch.com/2008/08/12/facebook-is-not-only-the-worlds-largest-social-network-it-is-also-the-fastest-growing/http://www.briansolis.com/2009/03/twitter-and-social-networks-usher-in/
widgethttp://www.facebook.com/apps/application.php?id=2841359929&b=&ref=pd_rhttp://www.wilhelmus.ca/2007/11/gotta_ski_bc_facebook_applicat.html
8th most popular Page on all of Facebookover 3.5 million fanshttp://pagedata.insidefacebook.com/
How much do you trust the following information sources?http://www.readwriteweb.com/archives/corporate_blogs_trust.php
…can’t imagine whyhttp://www.readwriteweb.com/archives/corporate_blogs_trust.php
…can’t imagine why"As you know, I am an Apple fanatic, but this deal even has me looking twice. Our computer buyer has put together this!The Blitz ad says $350 but Santa called and challenged him to do better. So now Sam’s is at new price of $345 and an additional $20 case value is included. This is an 8.9" WSVGA Acer CrystalBrite TFT LCD (1024 x 600) with an Intel Atom Processor, 1GB Memory, 120GB Hard Drive and a Crystal Eye Webcam. WOW. That information tells me that Sam’s really put together a great item for our Members! This unit is great for surfing the net, e-mail and is a nice netbook."http://www.readwriteweb.com/archives/corporate_blogs_trust.php
http://en.community.dell.com/blogs/direct2dell/
http://www.engadget.com/2006/06/22/dude-your-dell-is-on-fire/
http://www.engadget.com/2006/06/22/dude-your-dell-is-on-fire/
“In just a few more years, the current homogenized ‘voice’ of businessthe sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th-century French court."The Cluetrain Manifesto, 1999www.cluetrain.com
“In just a few more years, the current homogenized ‘voice’ of businessauthenticitychallengedthe sound of mission statements and brochures—will seem as contrived and artificial as the language of the 18th-century French court."The Cluetrain Manifesto, 1999www.cluetrain.com
it’s not advertising, “it’s just a really cool way to say goodbye”Source: OgilvyOne, Hong Kong, 2008,
read on-line reviews?
#2 driver of purchase decisions (#1: personal advice from friend)
user reviews more influential than 3rd party reviews1
86% read before buying(90% trust)2
70% who read reviews share them with friends, family, or colleagues31"Web users and web community," Rubicon Consulting, Inc. October 20082 Kudzu.com survey of 600 users, December 20083Deloitte & Touche, September 2007All quotes from www.bazaarvoice.com/industryStats.html
62% of brand-related talk features products in a positive light< 1% feature products negatively www.imediaconnection.com/content/13386.asp
of course, it isn’t all good, all the time…
“Social Technographics Ladder”21%37%19%35%69%25%US: 2008http://blogs.forrester.com/groundswell/2008/10/new-2008-social.htmlNorth American Social Technographics Online Survey Q2 2007http://www.forrester.com/Groundswell/profile_tool.htmlNorth American Social Technographics Media and Marketing Online Survey Q2 2008
heard of Twitter?do you tweet?
February 2008   < .5 m unique usersFebruary  2009   > 7 m unique usersLargest age group? 35-49 year olds (3m)www.Twitter.com/DrIanFenwickhttp://www.readwriteweb.com/archives/twitter_passes_nyt_wsj_in_unique_visitors.php
Solving customer problems quickly
Solving customer problems quicklySolving customer problems quickly
“Virgin’s perspective about social media isn’t a marketing channel but an engagement channel.We ask our community to answer questions. We love social media.				Porter Gale, V-P Marketing Virgin America	http://www.techcrunch.com/2009/07/10/crunchup-live-real-time-business/
do you know what people say about you?
www.serph.comwww.monitter.comhttp://spy.appspot.comwww.blogpulse.com
4 P’s of digimarketingProfileopportunities to review,
to comment,
to tag
to upload

DigiMarketing Seminar AsiaSoft

Editor's Notes

  • #5 So digital marketing isn’t this or this or this…although as we’ll see user evaluations and input are very important…and it certainly isn’t this…although that’s the reaction that careless marketers will get from their audience if they aren’t careful
  • #6 So digital marketing isn’t this or this or this…although as we’ll see user evaluations and input are very important…and it certainly isn’t this…although that’s the reaction that careless marketers will get from their audience if they aren’t careful
  • #7 Digital channels of course are channels that transfer information by discrete values (digits) rather than by continuous measures…analogue….
  • #8 Because all media are going digital…and let’s NOT call it new media
  • #9 I suspect most of you are
  • #11 Three areas: the opportunity of digimarketing; the characteristics of digital media; the difference between convention and digimarketing
  • #12 Start with the opportunity
  • #14 Let’s establish from the start the internet is now truly global. Only blank area in the map is Africa…and there we have quite a lot of mobile
  • #16 Remember that global internet? Rapidly becoming an Asian internet
  • #17 ,
  • #18 Study by Synovate last year
  • #20 Especially with the younger ones
  • #22 And internet remember is just the tip of the iceberg…digital media go well beyond internet
  • #26 No where I think is the shift more dramatic that in print…
  • #27 It’s NOT that news isn’t read…it’s the papers that aren’t read
  • #28 And while we’re debunking myths…as far as I can find there is absolutely no evidence that Charlie Darwie ever said this!
  • #29 Get in now, start to learn, make mistakes, then as digital grows even more, you’ll know how to use it best for your brands
  • #31 Allegedly said by Wanamaker…digital will still waste half your money, but you WILL know which half and be able to reallocateAlso US Postmaster General, his son formed the PGA
  • #32 campaign click-through rate was more than eight times the industry average of 0.20 percent. Site traffic increased 127 percent during the campaign.Not only do we get the overall metrics we can trace individual users and how they played with the ad, and what they did over the next days or weeks…until they flush their cookies<http://www.mediapost.com/ommaawards/gateway.cfm?ip=details&aid=346522>
  • #38 In the old days, trains ran on tracks of different widths, different gauges…so interoperability was very limited. Not until the gauge standardized could railroads really take off…5 foot 81/2 inches…interestingly enough only 60% of the world’s railroads are std gauge…narrow gauge in S US pretty destroyed in the Civil War…supposedly George Stephenson chose this width so he could use existing horse drawn wagons…which in turn supposedly were sized based on Roman chariots…basically the size of a horse’s ass.
  • #39 Marketing: interactive campaigns make sense, combining media, old and new
  • #40 Tow dimensional bar codes…carry about 40 times as much information as regular bar codes. Used on a daily basis by 50% of Japan’s mobile users. Mobile snaps them, and decodes in the phone, Can be coupon, message, url whatever
  • #43 QR codes can even go on taxi windows
  • #60 Every digital device has a unique identifier: your iPod is not the same as mine, your camera is not the same as mine…every digital device leaves its traces…now for the marketer this has real advantages
  • #61 Means we can collect data drip by drip, and personalize what we send to the customer…the Holy Grail of 1:1 marketing
  • #62 Augment reality: snap a building and the image goes to the server, which either recognizes it, or uses your GPS data to identify it; and accesses additional info which is sent back to your mobile to be overlayed on the image as text or icons. The MOBVIS technology could be used to inform visitors about the objects in an area be them buildings or landmarks. The images could also be annotated with additional information like history, event information, or information about nearby shops. Address : <http://www.readwriteweb.com/archives/hyperlinking_the_real_world.php>
  • #63 So that’s digital media
  • #64 So what difference does all this make?
  • #65 Traditional 4 P’s
  • #66 Digital 4 Ps: start from Permission. Although digital is intrusive, it’s also v v user controllable
  • #67 Adblock, free add-in for Firefox. If your ads annoy me, I can block you…and you will probably never get back in. If you send me stupid SMS ads, I will block you. Adblock is showing 10m downloads; adblock plus 240,000 per week; within 2 days of YouTube carrying some ads in vdos, the first instructions on how to block appeared; with 5 days TubeStop blocker was launched
  • #68 A downloadable mobile phone app, shows dates/times of games; locations; phrase book (speaks the phrases); pubs (that sell Guinness). It’s a branded version of an app anyone can buy for a couple of dollars. 1,000 people downloaded in the first week…if you give benefit consumers will invite you in.http://techgutter.com/2008/08/08/guinness-cantonese-speaking-mobile-application-for-hong-kong-rugby-sevens-2008/Starting a 3 year sponsorship of HK Sevens, aug 15 2008 announced sponsoring Singapore Sevens too.
  • #69 Permission the vital starting point for DigiMarketing
  • #71 But really today’s consumers are lean forward, active participators….
  • #72 Here the advertising message in the email is hidden, until the user figures out how to highlight the entire (blank) message and so read the party invitation and the code to get in.
  • #73 The MK Game from Asiasoft. MK is a restaurant chain in Thailand. The game reflects the restaurant branding, and uses the restaurant song. Games would give on CD to diners spending over 600 baht. Or one could go one line and download. Those spending at the restaurant got a code that when input created a sort of vegetable hat for their avatar. The avatars then dance, controlled from the keyboard, getting it right gets you points.There’s also a pre-paid (real cash) card that lets players buy additional avatar gear. Looks ideal for a link from game to store also…eg using game points for meal discounts (perhaps code, or SMS identifier driven); that would close the loop.
  • #75 Survey by Universal McCann 2008. Notice this is of “active internet users” which kinda removes the differences in internet penetration from one country to another.Of those who read blogs: 31%read daily (22% of all active internets daily); 40% weekly (28% of all)Notice the Asian countries surveyed participating well over average (only Hong Kong is below average)
  • #76 Of those who started a blog: 30% update daily; 30% weekly; 13% monthlyNotice the Asian countries at the left…again participating more than average
  • #78 Who belongs to 2? 3? 4?...very few…yet marketers always want to build their own social network…unless you offer a very major benefit (probably only possible for a very focussed group) you WILL fail. Try to fit into an existing network, not build your own.
  • #85 One approach to branding on Facebook. The Ski BC widget sits on your FB page and lets you check out snow conditions…and carries Ski BC branding.
  • #86 In March, 2009 was 2nd most popular page on all Facebook, behind Barack Obama; as of July 12 it was down to #8; Michael had taken #1 and #4, Obama kept #2; Vin Diesel #3; Dr House #5; Facebook #6; Will Smith #7Now has 3.5 m fansBut this page wasn’t created by Coke, but by two Coke fans in Los Angeles, AdAge tells us that they were contacted by Coca-Cola and asked to partner with Coke to manage the Page.Seems that real people are better at this stuff than marketers!
  • #87 Corporate blogs are one of THE least trusted items on the web…
  • #88 This is the Walmart blog (courtesy of www.ReadWriteWeb.com). Does it resonate with you?
  • #89 This is the Walmart blog (courtesy of www.ReadWriteWeb.com). Does it resonate with you?
  • #90 Walmart blog isn’t a blog, it’s a flog
  • #91 But it doesn’t have to be that way…look at the Dell blog
  • #92 Remember the flaming Dell laptop? Some guy’s laptop bursts into flames…a moment captured on camera phone, and extensively blogged. How should Dell react on their corporate blog, which had only just started at the time?
  • #93 Well of course they link to it…and explain they have no idea why it happened, but suspect the battery, and are doing all they can…stay tuned. That’s how trust and credibility are built…by trustworthy and credible actions
  • #94 Can you believe that ClueTrain is 10 years old? And they still aren’t listening
  • #95 Marketers are authenticity challenged
  • #99 A lot of marketers are afraid to allow customers to speak…well first if you “don’t allow” it on your site, they’ll do it somewhere else. Second, most of it is good.
  • #102 Forrester call it a “Social Technographics Ladder”…really it’s a participation ladder.Social activity is way up among 35-to-44 year-olds, especially when it comes to joining social networks and reading and reacting to content. Even among 45-to-54 year-olds, 68% are now Spectators, 24% are Joiners, and only 28% are Inactives.Address : <http://blogs.forrester.com/groundswell/2008/10/new-2008-social.html>
  • #103 Move to real time
  • #104 By April Twitter passed NYT and WSJ…at least in web traffic…and for the newspapers now (as we saw at the start) web traffic vastly surpasses the dead tree readersNow may be 10 million on Twitter (http://news.bbc.co.uk/2/hi/technology/8089508.stm)
  • #105 Do you have a director of digital care?
  • #106 Use existing social networks….only build your own if bigbig benefit
  • #107 Virgin America has about1.5 people monitoring and engaging on Twitter and other social networks:not just listening system, but engaging. The word “marketing” doesn’t even enter the mix. 20,000 plus followers on Twitter makes a vibrant and active community of people who will respond in “Twitter time,” thus alleviating the modest team from having to engage in every discussion, whether it’s positive or negative.The most common example Porter shared was a response to the question, “Should I fly Virgin?”“The community closes the sale,” exclaimed Porter.She also shared a story of how Virgin America invests in the good will of customers, simply by publicly acknowledging and supporting them in the same channels where they’re communicating.During one flight, a woman who just graduated medical school to become a doctor, had tweeted her excitement about graduating and also flying @virginamerica. Instead of simply responding with a congratulatory Tweet, Porter and her team retweeted and asked someone on the flight to buy her a drink (the benefits of offering inflightwifi).
  • #109 Lots of ways to monitor what’s being said about you and your brands…most have free versions, with the freemium upgrade model
  • #110 Lots of ways to participate. Consumers will be at different rungs of the ladder, so need varied ways for all to participate.
  • #111 Building the profile drip by drip, collating everything you learn about me…without freaking me out
  • #112 Theamazon site when I am not logged in
  • #113 …and now personalized when I am logged in…they remember everything I’ve bought even the RFID kit
  • #114 Finally the holy grail, meaningful personalization…using the unique identifiers of digital media to deliver just what the customer wants
  • #115 That’s the digimarketing difference
  • #116 So that’s the opportunity, digital media, and the digimarketing difference
  • #117 So successful from the outset that servers crashed, people couldn’t reach the site…complained to the Oz embassies
  • #118 Brilliant digimarketing captures everyone’s imagination even traditional media
  • #119 planning
  • #120 In digital planning is even more essential, the upside is almost limitless…if we aren’t prepared we will alienate our market. And all that “in the cloud” computing leaves plenty of scope for seamless expansion
  • #121 And on the internet, it all lasts forever
  • #122 Questions?