Guest lecture at Estonian Business School @ Helsinki. April 2015. Why Digital Marketing matters, how to do digital marketing and selected formats of doing digital marketing.
2. • INTRODUCTIONS
• DIGITAL DISRUPTION
• DIGITALIZATON AND CONSUMERS
• DIGITAL MARKETING AND ADVERTISING
• CUSTOMER CENTRIC & DATA DRIVEN MARKETING
• MEASURING AND KPI:S
• STORYTELLING
AGENDA
3. INTRODUCTION – LASSI NUMMI
• Senior Manager, Digital Marketing @ F-Secure
• BBA (Business Information Technology), MBA (Tallinn University of Technology)
• Various tasks in digital marketing – as customer and agency representative
• B2B, B2C, experience across industries
• Currently working on B2B digital marketing in Information Security industry
2001 20152004 2006 2010
Assistant / specialist Specialist PM / KAM / CEO CEO / Digital Director Head of B2B Digital
Marketing
5. WHAT IS DIGITAL DISRUPTION?
Digital disruption is
the change that occurs
when new digital
technologies and business
models affect the value
proposition of existing
goods and services.
• https://www.youtube.com/watc
h?v=neShgTczCM0
13. CHANGE OF PUBLIC SECTOR
http://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/visualizations
14. EU TAKING ACTIONS
• Digital agenda by European Union:
• https://youtu.be/fyjEtzW5VZs
15. KEY TAKEAWAYS – DIGITAL DISRUPTION
• Digitalization is reality and it’s happening right now
• Trough digitalization new business on and innovation trough digitalization
models and processes –creates competitive advantage.
• Digital disruption impacts traditional business models
• Commerce
• Public Sector
• Traditional manufacturing
• Service industry
• Etc..
• Huge opportunity, and new economy
• Big data and Internet Of Things are technical innovations enabling the change
• Also subsidized by European Union and local governments (See EU)
17. SELECTED FINDINGS FROM GOOGLE’S
CONSUMER BAROMETER
https://www.consumerbarometer.com/en/
18. • Developed markets – People have up to 3
devices connected devices they actively use.
• Touch points towards consumer multiply.
• Touch point = place / media / device
where marketer’s message meets the
customer.
• Customer behavior becomes more complex.
• More information available.
• Consumers are conducting research.
19. • Over 50% of consumers are doing research
before purchasing (global level)
• Selected markets – purchase related
information searches can be up to 80%
• Purchase channel (online or offline) does not
impact research behavior.
• ROPO = Research Online Purchase Offline
20. • Example on research behavior when
purchasing new TV
• How many purchases did online research
before purchasing offline.
21. • E-commerce is impacting heavily to selected
industries (See case Zalando)
• In selected markets and categories significant
amount of purchases are being done online.
• For example (Clothing and Footwear):
• South Korea– 75%
• China– 52%
• UK - 49%
• “Showroom effect”
22. KEY FINDINGS
• Digitalization has big impact on consumer behavior
• Big differences between markets. More mature markets have more
sophisticated purchasing and research models.
• Developing markets & leapfrogs not to be forgotten (leapfrog = skipping
middle phases in development)
• Consumers use the information available online when making
purchasing decisions.
• More significant the purchase – more research is being done.
• Cars, Technology, Travel, Apartments
• Consumers use devices at hand – most often mobile / smartphone.
24. WHAT IS DIGITAL MARKETING?
• https://www.youtube.com/watch?v=_PW
qIMQux-g
25. DIGITAL MARKETING
• "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.
• Can happen real-time
• The only marketing communication way which enables real dialogue with
customer
• Can be seen complex
• Constantly developing
26.
27. • 2015 estimated global media spend is approx. 600
Billion USD
• Traditionally spent between media types:
• TV
• Print
• Outdoor
• Radio
• Cinema
• Digital
• Over last 10 or so years, the share of Digital has
become significant.
• In selected markets (UK) up to 50% of all media spend
is digital / online advertising.
• See- Change of Media – Disruption.
GLOBAL MEDIA SPEND
28. SELECTED DIGITAL ADVERTISING CHANNELS
SEARCH &
SEM
DISPLAY SOCIAL VIDEO
E-MAIL AFFILIATE EARNED / PR
CONTENT
MARKETING
& SEO
NATIVE
29. SEARCH
• Seach Engine Advertising or Search Engine
Marketing
• CPC based (Cost Per Click)
• Based on search keywords on which advertisers
bid on and try to get their ads to show as first
search results.
• The most popular form of online advertising
• “Must have” of digital marketing
• Dominated by google with over 80% of market
share
• “The tool to harvest the demand”
30. DISPLAY
• The traditional “banner advertising”
• Visual display ads are being shown in
different medias
• Delivered trough Ad Networks (for example
Google Display Network)
• Can be CPC (cost per click) based, also CPM
(Cost per mille) or cost per impression based.
• Average CTR (Click trough rate) around 0,2%
• Also custom solutions (video, expanding
versions, interactive banners)
31. SOCIAL
• Social media marketing = paid advertising in
social media channels like:
• Facebook
• Twitter
• Linkedin
• Instagram
• Pinterest
• Very easy to target
• Targeting by information available tough social
media profiles.
• Different formats across channels and medias
• Usually CPC based.
32. VIDEO
• Video advertising is becoming more and more
popular
• Can be targeted very carefully (Youtube is using
google and Google plus data on the targeting)
• By 2017, video will account for 69% of all
consumer internet traffic, according to Cisco.
• Youtube has more than 1 Billion unique visitors
every month. Also Facebook is promoting video
heavily.
• Pay per view, pay per click etc. The formats vary.
• http://www.theguardian.com/small-business-
network/2014/jan/14/video-content-marketing-
media-online
33. AFFILIATE
• 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
34. E-MAIL
• The Classic
• Sometimes referred as “Spamming”
• Marketing communications trough e-mail
• Preferably to opt-in audience (have
marketing permission)
• Format of Direct marketing
• When combined with CRM / customer
Relationship Management solution data,
will perform the best.
• Works when it’s “adding value, relevant
and topical”
35. RE-MARKETING
• Cookie (a small piece of code
remembering where you have been)
based advertising.
• In practice means that the message will
follow the user across different websites
and social medias.
• Effective when you want to get the visitor
to return to your website or other digital
channel.
• Can be highly personalized (time, interest
etc based)
36. CONTENT MARKETING
• Hot at the moment
• Brands and advertisers are moving from pushing
their message to attract consumers to their premises
by providing entertaining and valuable content.
• Very important together with Search Engine
Optimization
• Brand awareness and re-marketing
• Textbook example :
• Red Bull Stratos – Felix Baumgartner jump
• http://mashable.com/2012/12/19/red-bull-content-
marketing/
• https://www.youtube.com/watch?v=FHtvDA0W34I
37. EARNED / PR
• Very close to content marketing
• Goal : To get your message to be published by 3rd
parties (and link to your content)
• Blogs
• News sites
• Online medias
• Social media shares
• Requires very good content
• Competition is tough
• Earned is usually boosted with paid media
• Sometimes Free is not free – see Affiliate
• Very few stunts and activities go viral with only
earned media and social shares
38. • Native advertising = Promoting the content
next to relevant content.
• Based on category tagging and “metadata”
• No Creative (banner etc. ) needed, the actual
content will act as creative solution.
• For example article about “Cyber Security” in
Trend Micro blog is shown next to article
about “Cyber Threat” in news site.
• Different networks such as:
• Outbrain
• Amplify
• Etc..
NATIVE ADVERTISING
40. CUSTOMER CENTRIC APPROACH
• Customer centric organizations tend to perform the
best
• Customer centric = putting the customers needs first,
and thinking the solutions from customer point of
view.
• Enablers of customer centric approach:
• Direct connection to customer of the product and service
• Dialogue and channel back from the customer
• Quantitative and Qualitative data (numbers and insights)
• Tools to develop customer centric approach:
• Service design technologies such as
• Customer Journey (Touchpoint) Mapping
• Customer personas
• NPS (Net Promoter Score)
42. CUSTOMER PERSONA
Customer personas are used
when:
• Planning the customer
experience and touch
points
• Planning the messages
and tone of voice +
content
• Planning the media
placements where we can
meet the customer
• In marketing automation
43. CUSTOMER DATA & DATA DRIVEN MARKETING
• Understanding and knowing your customer is the
key
• Impossible to do without up to date information
about your customer
• CRM (Customer Relation Management) solution is
essential part of any marketers toolkit.
• CRM solution is the central repository of the
customer data and the core of all communications.
• In order to be effective the message needs to be
relevant, therefore CRM and up to date data is
foundation of all marketing.
• Every digital activity leaves a trace, the challenge is
not to collect the data but to figure out how to use
the data so that it adds value.
44. MARKETING AUTOMATION
• Marketing automation means partially automated
communication to customer based on customer data
and behavior history.
• Most of the online stores use marketing automation
solution
• Uses pre-defined rules, customer personas, customer
data and digital footprint (history of user) to send
automated communications to the user.
• Most typical channels of communication is E-mail or
SMS
• Typical use cases for Marketing automation:
• Unfinished shopping baskets in online stores
• Monthly offers
• Targeted offers
• Check-in e-mails when travelling
• Etc…
45. COOKIES AND AD NETWORKS IN ACTION
1. Find out what Google thinks about you
In order to serve relevant ads, Google collects data about you
and creates a profile. You can control and review the
information Google has on you here:
http://www.google.com/settings/ads/
2. Find out your location history
If you use Android, your mobile device may be sending your
location to Google. You can see your entire location history
here:
https://maps.google.com/locationhistory
3. Find out your entire Google Search history
Google saves every single search you have ever done. On top
of that, they record every Google ad you have clicked on. This
log is available in Google web history controls:
https://www.google.com/history/
GOOGLE YOUTUBE
How does Google see me?
http://t.co/hSxzJaPf
My search history in
YouTube?
.
https://www.youtube.com/my
_search_history
Where have I been in last 30
days?
https://maps.google.com/loca
tionhistory
My watched videos in
YouTube?
https://www.youtube.com/fee
d/history
When have I accessed my
Google account?
https://security.google.com/se
ttings/security/activity
More Google and advertising
settings
https://www.google.com/setti
ngs/accounthistory
47. MEASURING AND KPI:S
• Digital marketing’s competitive advantage to other marketing is that it can be measured and adjusted real-
time.
• Out of all data what can be collected it’s important to select couple of Main KPI:s (Key Performance
Indicators) what to follow real time.
• These can be then supplemented by secondary KPI:s
• KPI:s in digital marketing can for example be (Case e-commerce):
• Sales in €
• Average order value
• Shopping basket abandon rate
• Average shopping basket value
• Cost per order
• Cost per visitor
• Amount of unique vistor
• Cookies have been de-fact standard of visitor tracking, but they are browser based, and does not serve the
modern multi-device use cases.
• Facebook and google are coming up with their own solutions to replace cookies..
49. STORYTELLING
• Even tough the advertising and media landscape is changing the
storytelling is still very much there.
• People trust Native, True advertising which gives them something:
• Entertainment
• Emotions
• Practical advice
• Other added value