Digital marketing overview 2014

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An overview of digital media and marketing

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Digital marketing overview 2014

  1. 1. Digital Marketing Overview 2014
  2. 2. Agenda 1. 2. 3. 4. 5. 6. 7. Importance of digital media Engagement Influencers Social CRM and ORM Analytics and ROI Future Trends Industry
  3. 3. Is digital media important?
  4. 4. Digital Media – Brand Equity Perspective Brand equity: A set of brand assets and liabilities linked to a brand name and symbol, which add to or subtract from the value provided by a product or service David Aaker Brand Equity Awareness Loyalty Quality Advertising Engagement WOM Community Association Transparency Responsive “Cares”
  5. 5. Earlier Consumer Decision journey The Funnel Marketers have long used the famous funnel metaphor to think about touch points: Consumers would start at the wide end of the funnel with many brands in mind and narrow them down to a final choice. Consumers started with a large number of potential brands in mind and After purchase, their relationship with the brand typically focused on the use of the product or service itself. Source: Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places.
  6. 6. Fundamental changes in purchase • Consider & Buy: Marketers often overemphasize the “consider” and “buy” stages of the journey, allocating more resources to building awareness • Evaluate & Advocate: Marketing investments that help consumers navigate the evaluation process and then spread positive word of mouth about the brands they choose • Bond: If consumers’ bond with a brand is strong enough, they repurchase it without cycling through the earlier decision-journey stages. Helps in building brand community Source: Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places.
  7. 7. Impact on Purchase Funnel Global • 51% of brand word of mouth on internet is due to TV advertising 1 – 19% of word of mouth is due to PR, events and brand news • 24% decline in confidence on TV advertising2 • 18% increase in trust on Word of Mouth since 2007 for purchase India • 77% of internet users refer to online reviews before purchase3 – Second most trusted source after friends and family • 21% decline in confidence on TV advertising for purchase Brand advocacy is an important driver of brand consideration and choice in the age of social web 1Data2decision research 2013 http://www.warc.com/LatestNews/News/TV_advertising_is_vital_to_word_of_mouth.news?ID=31155 Trust in advertising (2012) http://www.nielsen.com/us/en/reports/2012/global-trust-in-advertising-and-brand-messages.html 3Nielsen India Release (April, 2012) http://www.fi.nielsen.com/site/documents/NielsenTrustinAdvertisingGlobalReportApril2012.pdf 2Nielsen
  8. 8. Importance of digital media Brand Engagement Sales Feedback Research Brand Community • Consumers spend more time on digital media • Influencers, Engage with loyalists • Direct sales channel • Reduce lead costs • Instant feedback • Reduce online negative word of mouth • Better understand consumption patterns, brand perceptions in social context • Build digital brand asset for brands such as community
  9. 9. Digital Media is now an important part of the communication mix
  10. 10. How should I run a digital campaign?
  11. 11. Brand Engagement • • • • • Touch Point • Since consumer spend more time on digital, it becomes an important touch-point Brand Recall • Aid brand recall Loyalty Sharing • Brand activity is visible through social nature of digital media Engagement requires • • • Research - Right understanding of audience Targeting – Effective targeting through media planning tools Execution – Creative that integrates desired brand positioning with target audience understanding
  12. 12. Digital Campaign Stage 1 Setting Objectives Metrics Brand Awareness Sales Share of Voice Sentiment Growth in community Engagement Stage 2 Conceptualize Stage 3 Execute Factors 1. Brand personality 2. Integration with overall communication 3. Understanding Target Audience Factors 1. Decide Platforms 2. Media Buying 3. Engagement tools 4. Optimizing media (CTR, CPM, CPC) Stage 4 Measure Factors 1. Use of analytics tools 2. ROI – Sales, Community membership, Engagement
  13. 13. Key success factors Aligned with brand personality Why digital campaigns go wrong? Key factors Integrated Target Audience Not aligned with the overall brand positioning Not integrated with other communication such as TV, Print, Radio etc. Lack of understanding of the digital habits of the target audience
  14. 14. Which platforms are more important for a campaign?
  15. 15. Platforms Important question to ask? Is the platform aligned with my objectives? Does it help build a brand community? Is it helping create a digital asset? Source: Mahesh Murthy - RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
  16. 16. Common Mistake Chasing Facebook Fans! • Typically less than 5% of your updates are shown to your fans • You need a sponsored story to reach your own fans • Every time you need to engage with Fans, you need to spend more! Is Facebook page a digital asset for a brand? Source: Mahesh Murthy - RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
  17. 17. Why did this happen? • Facebook is a Social Networking platform • With more ads and brand updates, user loose interest, which harms Facebook as a platform • Facebook stock price was declining • To boost revenues, stock price, brands were asked to pay more to reach their own fans • Facebook has launched new ad formats – In feeds, and video!
  18. 18. Pepsi vs. Coke during IPL 2013 IPL 2013 season Pepsi’s share of voice was back to the same level after investing heavily in IPL 2013 Source: Pepsi vs. Coke study – Drizzlin Media
  19. 19. How important is the creative aspect?
  20. 20. Red Bull Stratos
  21. 21. The Consequence
  22. 22. Interbrand’s top 100 brands 2012 – Most of them have not spent too much on Media Buying!
  23. 23. Strong digital campaigns should be a part of the overall Integrated Marketing Communication
  24. 24. Example: Dove Real Beauty Dove's real beauty story is almost 9 years old, which began with market research in 2004 that indicated that only 4% of women in the world consider themselves beautiful. Dove’s campaign received more than 60 million visits of women in the world consider themselves beautiful.
  25. 25. Is there any other way of engagement?
  26. 26. Information flow in a group depends on influencers
  27. 27. Importance of influencer engagement Source: http://www.marketwired.com
  28. 28. Influencers • • • Followers • An existing follower base Credibility • Credibility on a topic e.g. cooking, automobiles Community • Belong to a community (social and psychological) and have a strong influence How to go about influencer engagement? Identify Target Audience Identify influencers • Tools (Statsit) • Blog Aggregators Promote Influencer engagement Measure Engagement
  29. 29. Examples
  30. 30. How to manage angry consumers on social media?
  31. 31. Social CRM Not responding to angry consumers on social media on time has the potential to be a PR disaster! • Consumer are powerful • Rants can go viral • Consumer can organize in groups • It requires you to be • Proactive • Responsive • Sympathetic to problems • Engaging in follow-up • Common metrics • First response Turn Around Time (TAT) • Resolution response TAT
  32. 32. Tools
  33. 33. How should I measure whether the activities on digital media have been successful or not?
  34. 34. ROI ROI from a tactical to strategic continuum Tactical Sales Equity Share of Voice Growth in traffic Engagement Growth in Fans Strategic Market Share Sentiment Growth in followers Click through rate Cost per click
  35. 35. Future Trends
  36. 36. Second Screen Developing countries are driving global internet and mobile usage growth1 Country China India Indonesia 2008-11 Additional Internet users (Mn) 215 69 37 2011 Internet Users (Mn) Y/Y Growth 513 121 55 12% 38% 22% Population penetration 0.38 0.1 0.23 Philippines 28 34 44% 0.35 U.S.A 15 245 1% 0.79 Smartphones (2013) 3 India Stats(2013) 2 70-80% growth in smartphone sales in 2014 will be driven by BRIIC nations 61.4% growth prediction in smartphone sales in India 19% CAGR in BRIIC markets predicted between 2012-2016 74% of all internet users use social39.7 million active mobile internet media user base 62 million urban social media 32.5 million active social users networking users 82% penetration of social media 18.2 million of active Mobile in college students Internet users access social 77% of Indian users use mobile formedia social media 1KPCB Mobile Internet Usage 2 India (2013) 2012 Digital Trends http://kpcb.com/insights/2012-internet-trends 2Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau (IMRB) http://www.informationweek.in/internet/13-0314/77_percent_of_indian_users_use_mobile_for_social_media.aspx 3 Canalys (2013) http://www.canalys.com/newsroom/developing-markets-will-drive-smart-phone-market-growth-2013
  37. 37. Importance of multi-screen
  38. 38. Social TV • Internet did not kill TV! • Socially integrated viewing experience has assuaged the initial fears of some professionals in the television industry who wondered if social media would drastically reduce the amount of time people might spend in front TV • Social media is now recreating “group viewing” with people talking about programs on spaces created by broadcasters • This intersection of TV and social media has led to the emergence of “Social TV” • online social interactions that occur between viewers while watching television
  39. 39. Social Media is helping TVCs • Growing popularity of social media has coincided with the decline of a consumer’s use of traditional media1. – Growth of social media is driving popularity of Television Commercials (TVCs). • Spikes in online conversations around huge events like the Cricket matches, IPL, or the Oscars show how digital conversation is driving more people to tune in • 43% people follow social media conversations about a TV program on a companion mobile device while watching the program2 Social Media users following conversations while watching TV (2013)2 Category Developing Countries Developed Countries Passive listening 30% 17% Active engagement 27% 10% • Need to target engaged audience due to declining attention span of consumer S.no: Attention span statistics1 Data 1 The average attention span in 2012 8 seconds 2 The average attention span in 2000 12 seconds 1Treadway, C., & Smith, M. (2010). Facebook marketing: An hour a day.Indianapolis, IN: Wiley 2Motorola engagement research. Analysis of video consumption habits of 9,500 consumers across 17 markets globally http://mediacenter.motorola.com/Press-Releases/Mobile-Devices-and-DVRs-Shifting-Global-Media-Consumption-3c1d.aspx 3 Harald Weinreich, Hartmut Obendorf, Eelco Herder, and Matthias Mayer: “Not Quite the Average: An Empirical Study of Web Use,” in the ACM Transactions on the Web, vol. 2, no. 1 (February 2008) (Sample: 59,573 page views)
  40. 40. Examples: Super Bowl Super Bowl XLVII set a new All-Time Record in social TV with 30.6M social media comments. Twitter accounted for 27.7M, public Facebook accounted for 2.8M Sources https://wordpress.bluefinlabs.com/blog/2013/02/04/super-bowl-up-150-in-social-tv-sets-new-all-time-record/ http://mashable.com/2012/02/06/super-bowl-xlvi-social-tv-stats/
  41. 41. Sustainability One of the biggest challenges in sustainability till now has been the unwillingness of consumers to pay more for goods that took care of the society. A recent study by Nielsen that surveyed more than 29,000 global respondents found out that the percentage of people willing to reward companies that gave back to the society had increased to 50% in 2013 Impact on countries such as India from 45% in 2011 The demographic willing to spend more is also the demographic that is more active on social media Source: http://www.domainofhope.com/2013/08/companies-bill-and-csr-to-impact-indian.html Companies Bill and CSR to impact Indian Social Media investments
  42. 42. Example: Unilever “Project Sunlight” Project Sunlight campaign -- a sustainable lifestyle initiative. Project Sunlight launched Brazil, India, Indonesia, the UK and the US, is encouraging parents to join what Unilever sees as a growing community of people who want to make the world a better place for children and future generations. Impact: 11 million+ views Sources: http://adage.com/article/the-viral-video-chart/unilever-s-project-sunlight-campaign-makes-viral-chart/245439/ http://www.unilever.com/mediacentre/pressreleases/2013/Unileverlaunchesprojectsunlightanewinitiativetoinspiresustainableliving.aspx
  43. 43. How is the industry organized?
  44. 44. Industry Digital media industry has Creative Ad Research Digital Media Media buying Tech PR • Pure creative agencies that conceptualize and create digital campaigns • Old ad and PR agencies who have extended their services to digital • Technology companies that work on customized solutions such as websites, applications etc. • SEO, SEM • Technology companies that provide analytics and intelligence • Media buying companies and customized media owners • Includes SEM, Facebook, YouTube ads
  45. 45. Thank You Contact me at web.sushant@gmail.com www.domainofhope.com
  46. 46. Additional Reads Adage Digital http://adage.com/channel/digital/20 Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places http://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-allthe-wrong-places/ar/1 Redefining Advertising: How 2013 Transformed Digital Marketing http://www.google.co.in/think/infographics/redefining-advertising.html RoI in social marketing http://www.slideshare.net/maheshmurthy/ro-i-in-social-marketing-some-metrics-bymahesh-murthy-of-pinstorm

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