Guest lecture on Advertising course at Estonian Business School (EBS). Focus on PRACE-models REACH - section.

1. Digital
Marketing 101
Lassi Nummi, Guest lecture
03.10.2012
EBS
keskiviikkona 3. lokakuuta 2012

2. Lassi Nummi
CEO / Zeeland Idea Baltics
Digital marketing strategies, Head of Digital Marketing - Zeeland Oyj
BBA,MBA. 10+ years of digital marketing experience
Worked with brands: BMW Baltics, Nokia, L´Oreal, SOK, Rocla, Lemminkäinen group,
Bigbank, ISS, Lumon, TeliaSonera, DNA, Turku Energia, etc...
keskiviikkona 3. lokakuuta 2012

3. Agenda:
What is digital marketing ?
PRACE-model
PLANNIG
REACH
7 Different digital marketing methods to reach audience
Conclusions
Q&A
keskiviikkona 3. lokakuuta 2012

4. What is Digital Marketing?
keskiviikkona 3. lokakuuta 2012

5. Digital marketing - definitions
"Marketing Online (or Online Marketing)"
Digital marketing is the use of internet-connected
devices such as computers, tablets, smartphones and
game consoles to engage consumers with online
advertising.
Digital marketing is the most measurable and cost
effective way of marketing communications
The only marketing communication way which enables
real dialogue with customer
keskiviikkona 3. lokakuuta 2012

6. So, what makes digital marketing so important ?
ADVANTAGES:
Targeting
Right message to right audience at right time
Measurement and metrix
Youʼll know how your investment is spent
2 - way conversation
Possibility to have real dialogue between brand and customer, online customer
service
Customerʼs voice and review of the brand
Possibility to search and compare between options. 3rd party evaluations
E-commerce / possibility to purchase online
Possibility to direct purchases online
keskiviikkona 3. lokakuuta 2012

7. Why So? What makes digital marketing important?
Global access to brand and products / expanding your client base
Access to brand throughout the world
New business models
Selling digital applications, music, movies on demand etc.
New models of marketing
Mobile marketing, online branded games, location based marketing etc..
Possibility to stand out from competitors
When done correctly brand can appear bigger than it actually is online
Possibility to react, change and personalize the messages
Cost effectiveness
+ much much more
keskiviikkona 3. lokakuuta 2012

8. Building blocks of digital marketing:
CUSTOMER CUSTOMER
CUSTOMER
STRATEGY / PLAN CONVERSATION AND RETENTION AND
ACQUISITION
ENGAGEMENT SALES
How do we want to grow Where and how do we How do we convince the How do we keep the
our business online, how reach our customers ? potential customer to be customer our customer
do we use digital media How do we build our customer. How to and not to lose it to
now, and how can we awareness ? make the first purchase ? competitors. How to make
achieve our goals. How to customers return and buy
measure and what? more ?
PLAN REACH ACT&CONVERT ENGAGE
SOURCE: http://www.smartinsights.com/digital-marketing-strategy-guide/
keskiviikkona 3. lokakuuta 2012

9. Today we will focus on:
CUSTOMER CUSTOMER
CUSTOMER
STRATEGY / PLAN CONVERSATION AND RETENTION AND
ACQUISITION
ENGAGEMENT SALES
How do we want to grow Where and how do we How do we convince the How do we keep the
our business online, how reach our customers ? potential customer to be customer our customer
do we use digital media How do we build our customer. How to and not to lose it to
now, and how can we awareness ? make the first purchase ? competitors. How to make
achieve our goals. How to customers return and buy
measure and what? more ?
PLAN REACH ACT&CONVERT ENGAGE
SOURCE: http://www.smartinsights.com/digital-marketing-strategy-guide/
keskiviikkona 3. lokakuuta 2012

10. PLAN - Digital marketing strategy
Several strategy models
SOSTAC - Model is recommended by PR smith
and Smart Insights
Consists of 5 steps:
Where are we now
Current status
Where do we want to be ?
5 objectives : (Sell, Serve, Sizzle, Speak, Save)
How do we get there ?
Segments, targets, positioning, OVP, Integration, Tools)
How exactly do we get there ?
Digital marketing Mix, Schedule etc
The details of tactics
Organizational model, responsibilities
How do we monitor performance
KPI:s and constant development
ALWAYS PLAN BEFORE ACT. PLAN > REACH > ACT > ENGAGE SOURCE: PR Smith+ Smart Insights
keskiviikkona 3. lokakuuta 2012

11. REACH - Customer acquisition
7 Digital methods where we can reach potential customers:
SEARCH
DISPLAY ADVERTISING
SOCIAL MEDIA / VIRAL/ GAMING CUSTOMER CONVERSATION AND
CUSTOMER RETENTION AND SALES
ENGAGEMENT
E-MAIL MARKETING
PURCHASE / GOAL OF CAMPAIGN
WEBSITE / TARGET SITE
AFFILIATE MARKETING
ONLINE PR
MOBILE
ANALYTICS TOOLS + MEASUREMENT
OFFLINE COMMUNICATIONS
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

12. SEARCH
Most of the traffic to sites is driven by
search engines
Google dominates with 86 % of
searches share in global scale
Search results are divided into Paid Paid
and Organic results. results
Paid = CPC based (cost per click)
Companies buy certain search
words and terms they want to be
found with.
Each click costs money Organic
results
Also powerful branding tool
SEO = Search engine optimization
SEM = Search engine marketing
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

13. SEARCH
SEM industry in North america 2012 : USD 23 Billion
Paid search results (example : Google Adwords)
Search results are divided into Paid and Organic results.
Search engines are the most popular sites in internet, therefore visibility is extremely
important = Competition is fierce
Search engines needs to be covered when running campaigns in other medias (indirect
traffic)
Consumers coming from searches are more likely to buy it than traffic from other medias
(reason to search)
Search marketing Should be continuing, not only for campaigns
Take over the words you want to link to your brand / product
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

14. DISPLAY ADVERTISING
The “traditional way of online advertising”
Banner advertising
Video advertising
Controlled by ad networks: Special
Advertising.com (AOL) solution /
banner
Yahoo!
Google / DoubleClick
http://www.youtube.com/watch?v=1C0n_9DOlwE
Different models:
CPM (cost per thousand, how many times the ad is
shown)
CPC (cost per click, each click has a cost)
Re-targeting Video ad
Does it work ?
Banner ad
http://www.youtube.com/watch?v=VJCqdwon8Ho
For branding purposes more than driving traffic ? PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

15. SOCIAL MEDIA
http://youtu.be/JdyBM-p05Ss
Facebook, Video sites, professional networks, twitter, Spotify etc.. Constantly developing
Virtual social networks where people interact with each others.
Social media offers great opportunities for marketers:
Social media channels enables a brand to interact and communicate with consumer in more
neutral environment
Real 2-way dialogue
When done correctly possible to use consumer as messenger (Sharing, recommendations
etc)
Virtual word of mouth
Great targeting possibilities (consumers store a vast amount of data in social media of
themselves.
Specialized networks for different purposes, for example recruitment - linkedin etc..
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

16. SOCIAL MEDIA + Games
However Social media does not hold track record on deliverin ROI
SoMe users what to focus on socializing, not commercial messages
Great tool for example carrying out customer service online
Listen to your audience when going to social media. FB fan does not necessarily convert into Euros,
but needs attention.
Consider using in HR, PR etc..
GAMING:
Mobile devices and social media has enabled game-based advertising.
Online-games and free sponsored games are newcomers on digital marketing field.
Examples : Different car manufacturer applications and games
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

17. SOCIAL MEDIA - VIRAL + MEME
Viral marketing, viral advertising, or marketing buzz are buzzwords referring to marketing
techniques that use pre-existing social networks and other technologies to produce
increases in brand awareness or to achieve other marketing objectives (such as product
sales) through self-replicating viral processes. (sharing, word of mouth)
Viral = Content and Creativity is the king
Viral examples:
http://vimeo.com/47875656
http://vimeo.com/26325973
INTERNET MEME:
Concept that spreads via internet. Originates from internet users
http://youtu.be/9bZkp7q19f0
300 000 000 Likes
Memes are risky to commericalize
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

18. E-MAIL MARKETING
E-mail still the number 1 used communication tool used online
Marketing messages sent by e-mail to subscribers or purchased lists of receivers
Used to:
Build relationships
Get traffic
Cross promote
Nurture Leads (Give-get)
Make sales (offers)
Segmentation and frequency are the keys
Right message to right segment at right time
Easy to measure
Remember local legislation
Groupon-like group offers rely on e-mail marketing
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

19. AFFILIATE MARKETING
Promoting your products or services trough partners online
Partners gets commission if the consumers originating from their sites fulfills the agreed
goals (leave their contact information, purchase online etc etc..)
Comparision sites are mostly affiliate run
Examples:
Travel booking sites
Flight comparison sites
Car and real estate sites
Banking, finance, insurance
Online stores
Re-targeting can be used together with affiliate program
Message can be altered if user has seen the ad or clicked the link.
Cookie-based technology
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

20. ONLINE PR
Earned media:
Blogs
Newspapers
News portals
Etc.
Goal is to earn media visibility, instead of buying it.
+ gain trust and recommendations from “objective” influencers
Contact bloggers and other influencers “trendsetters”
Deliver new products to testers for reviews
Can be connected with social media (PR takes care of companyʼs social media presence)
Crisis communication and reaction to negative publicity. --> Reputation management
Has to be done carefully
http://youtu.be/mEsnb3kUDAw
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

21. MOBILE
Smartphones and fixed data packages are reality
IOS, Android and Windows mobile largest platforms
For brands itʼs important that the information is reachable by mobile
devices and appears on searches
Location based services are gaining popularity
Social media usage is mobile
Consumers are looking for information on local services on the go
ROPO - research online - purchase offline
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

22. MOBILE
APPLICATIONS:
Branded applications for different smartphones
Needs a strong fanbase
Needs to fullfill a purpose in order to install the application
Premium and lifestyle brands are forerunners:
Case LV, Rossignol, Gucci etc.
http://www.youtube.com/watch?v=EbuiWpigF3k
Remember - plan carefully - costs money and requires a real life
case.
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

23. ANALYTICS AND MEASUREMENT
Digital marketing is easy to measure
Measurement should cover everything from
traffic sources to Goals which are being
identified on the websites or e-commerce sites
and opinions how users use the services and
what do they think about them
Measurement should be Quantitive and
Qualitative
KPI:s (Key performance indicators) should be
defined and set at the planning phase
KPI:s can be for example: Example of google
analytics funnel
visualizations
Time spent with brand
Doing certain action (purchase, e-mail
subscription, offer on facebook etc)
KPI should be measurable and related to
business. Number of visitors or facebook
fans is not a real KPI PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

24. ANALYTICS AND MEASUREMENT
Popular measurement tools:
Coremetrics
Omniture
Google analytics
WebTrends
Unica
Snoobi
Remember: Measure for reason -
react on results. Measure real things.
A/B testing in online environment is
also possible and rather easy to do
in A/B testing for example 2 different
products or creative messages are
being shown to customer, and which
performs better is being preferred.
http://youtu.be/3Sk7cOqB9Dk
PLAN > REACH > ACT > ENGAGE
keskiviikkona 3. lokakuuta 2012

25. SUMMARY:
PRACE (PLAN, REACH, ACT/CONVERT, ENGAGE)
Today we focused on REACH
7 Main methods to reach the audience online:
Search
CUSTOMER CUSTOMER
CUSTOMER
Display STRATEGY / PLAN
ACQUISITION
CONVERSATION AND RETENTION AND
ENGAGEMENT SALES
Social media / Viral
E-mail marketing
Affiliate marketing
Online PR
Mobile marketing
Measurement is the key - if you cannot measure it - donʼt do it
Remember to coordinate the message trough the channels
The most effective way is to combine different methods and techniques
Integrate offline marketing with online. remember to measure also offline (individual website adrresses etc)
Digital marketing is not only advertising - usage of digital channels should be present in all functions
PLAN before jumping into the REACH-phase
http://youtu.be/k5776HPNeHA
keskiviikkona 3. lokakuuta 2012

26. QUESTIONS ?
CUSTOMER CUSTOMER
CUSTOMER
STRATEGY / PLAN CONVERSATION AND RETENTION AND
ACQUISITION
ENGAGEMENT SALES
How do we want to grow Where and how do we How do we convince the How do we keep the
our business online, how reach our customers ? potential customer to be customer our customer
do we use digital media How do we build our customer. How to and not to lose it to
now, and how can we awareness ? make the first purchase ? competitors. How to make
achieve our goals. How to customers return and buy
measure and what? more ?
PLAN REACH ACT&CONVERT ENGAGE
SOURCE: http://www.smartinsights.com/digital-marketing-strategy-guide/
keskiviikkona 3. lokakuuta 2012

27. Facebook.com/ZeelandGroup
keskiviikkona 3. lokakuuta 2012