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What this course is not about…

 23E47000 Digital Marketing
 Assistant Professor Jari Salo
 HSE, Dept. of Marketing & M...
Detailed schedule
•   August 31                  Course introduction and (Announcement of Nokia case competition)
Digital economy cube: Choi et al 1997 modified                               Digital marketing in practice

Viral/WOM marketing                                           Crowdsourcing

 Variations of viral/wom

 • Case Snellman

E-mailing                                                      E-mailing

• Emails have impact on buying decisions:       ...
Web advertising measurements                                         Web advertising effectiveness
• Ad view = number of t...
Search engine optimization                                                   Search engine optimization

• Basically the s...
Some simple blog strategies                                     RSS, Pod- vodcasts

• Commenting those blogs important to ...
DM landscape                                           Webcast - webinar

 Wikis                                          ...
Tags, social bookmarking, physical browsing, games= geo-
    Technical detail: Mashups                                    ...
Widgets                                                                         Webopinions

• Widgets can be used for bra...
Digital marketing landscape                                                                        Twitter: short message ...
Digital marketing landscape

                                                              • Lehtimäki, Salo, Hiltula &...
Digital marketing landscape

                                                                                   Virtual wo...
Digital marketing landscape                                                                    Digital marketing landscape...
Introduction to mobile technologies – consumer                                            Introduction to mobile technolog...
Results from Rotuaari -project                                               Mobile Marketing

     • University of Oulu’s...
Digital marketing in practice
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  1. 1. What this course is not about… 23E47000 Digital Marketing Assistant Professor Jari Salo HSE, Dept. of Marketing & Management E.230 Digital Marketing - Salo 2 Course objective Schedule • Course introduces students to different digital • Mondays 16-18.00 o´clock from August 31 to marketing possibilities. Students are able to decide October 12 at a room AE341 on different types of digital marketing campaigns and manage those accordingly in both consumer • Wednesdays 16-18.00 o´clock September 2 to and customer markets. October 14 at a room AE341 • Different types of operationalizations of digital marketing are introduced. Course creates basic understanding of internet and mobile marketing. Time is also devoted to pertinent issues in the web 2.0 e.g. social media, virtual worlds, blogs and viral marketing. Digital Marketing - Salo 3 Digital Marketing - Salo 4 Course and student competition working Evaluation and grading groups • Nokia student competition • 3-5 students • Campaign solution (send ppt slide show and max • Group 1 20 page proposal to by September • Group 2 28) • … • Select project manager,…exchange contact details • Nokia student competition max 50 points etc. • Exam 50 points • Total 100 points Digital Marketing - Salo 5 Digital Marketing - Salo 6 1
  2. 2. Detailed schedule • August 31 Course introduction and (Announcement of Nokia case competition) Formation of case groups • September 2 Digital marketing landscape • September 7 DM planning and campaign management • September 9 Mobile marketing in consumer markets (Karjaluoto) • September 14 Teenagers and virtual worlds: Case Habbo Hotel (Mäntymäki) • September 16 Digital marketing in virtual worlds (Hietanen+Runtoshop?) • September 21 Digital Marketing and experience goods (Pöntiskoski) • September 23 Search engine marketing and optimization(Pöntiskoski+Snoobi) • September 28 Deadline for submitting Nokia case papers • • • September 28 September 30 October 5 Nokia competition presentation (groups 1-4) Nokia competition presentation (groups 5-8) Nokia competition presentation (groups 9-12) (or lecture by Salo) Digital marketing landscape • October 7 Finalists (3 groups) are announced A PAUSE FOR THOUGHT • October 7 In game and other digital marketing • October 8 Finalists feedback session at HSE room F-310 9.00-12.00 o'clock • October 12 Digital marketing in business markets • October 14 Digital marketing: past, present and future • October 16 Finalist presentation and winner announcement at Nokia House (Keilalahdentie 2-4, Espoo) Digital Marketing - Salo 7 Digital Marketing - Salo 8 A working definition for digital marketing Digital marketing landscape • In brief, digital marketing aims at creating, demonstrating, documenting, communicating and delivering value in digitized way to customers (B2C and B2B) and for managing customer relationships in ways that enhance digital joint value creation of customers, organizations and stakeholders (Editorial of Journal of Digital Marketing) • Digital marketing includes all forms of marketing conducted in digitized way. These include internet marketing activities in mobile and computer networks but also those digital marketing activities that are conducted in private secured networks (mainly industrial usage of digital marketing) • Digital marketing is not replacing traditional marketing efforts but creating new ways to conduct marketing and improve or “kill” old costly habits. Most of the companies have already started their digital marketing efforts and some have their only focus in digital activities. Digitization is visible in business, research, new product development, customer communication, branding, advertising, sales, and in relationship management (CRM and PRM) Digital Marketing - Salo 9 Digital Marketing - Salo 10 Technology evolution – service Evolution from presence to understaning development 2
  3. 3. Digital economy cube: Choi et al 1997 modified Digital marketing in practice • Digital marketing is used to – Create new customer relationships (CRM) (e.g. Fruugo) – Enhance old relationships (CRM) (Nokia – Improve service ”experience” (CEM) (mobile tickets, IRC- gallery) – Create and extend brand awareness (Facebook…) – Simply the fuzzy front end of innovation (NPD/NSD/R&D) (Dell Ideastorm) – ? • General marketing trends relationships, value creation, innovation, service dominant logic of Physical Digital Delivery marketing guide DM research and practice Digital Marketing - Salo 13 Digital Marketing - Salo 14 Most popular DM tools today in Finnish Why DM? companies? • Even professional buyers have used and are using • Basic DM tools used in Finnish companies: digital tools e.g. social media in their daily job – even – Company website more than the sellers (see Davis 2008). – Search engine optimization and marketing – Newsletters and internet advertising • 65 % out of 1000 buyers operating in B2B markets (HSE:Divia report 2009) tell that they start search process (new, rebuy, modified buy) with general search engines and after • Reasons that have influenced to adopt DM: that move to industry specific search engines like – Cost pressure – Chancing consumer behavior • Company websites are becoming even more important sources of information for buyers but only • 33 % of the Finnish companies that responded have allocated when time for closing deals comes apparent (Davis a budget for DM 2008b). Change in DM Viral/WOM marketing • Marketing shifts from the role of passive advertiser • For many DM activities aim is at creating Viral/Wom effect into active creator of content and messages as well as acquires a role of mediator who combines and • In practice these means that content or other marketing material is so impressive or entertaining that customer publishes content best way possible wants to send it to friends in form or another (+ commenting, continuing the story, making own video etc) • Content is created jointly with customers and • Effectiveness of viral marketing is based on the marketers actively produce content for customer identification of sender and receiver (Lindgreen & communities and their own communities (intra or Vanhamme 2005). external) • Viral marketing does not always work since when consumers are at the further in their decision making • Viral and effective digital marketing is becoming more process viral effect diminishes (De Bruyn & Lilien 2008). visible in companies operating in consumer markets and in innovative industrial companies 3
  4. 4. Viral/WOM marketing Crowdsourcing Variations of viral/wom • Case Snellman • Recommendators = people that tell friends how good some products are – get promotional material and products – not real money • 500 people, increased brandawareness ! • Movies and flopping (mobile example !) • Mobile/digital wom / crowd sourcing… Canvas for digital marketing E-retailing • E-retailing / e-tailing • Men are seeking solutions – women experiences • E-mailing (same relates to web advertising information • Websites seeking behavior) • Web advertising (banners etc) • Search engine marketing / optimization • Both value personalized service, experience, security, functional service, surprise gifts • Blogs, RSS, vod/podcasts, Wikis, webcasts, mashups and tags (physical browsing) • User generated content (UGC) • Most popular purchases: trips and hotel bookings 42 %, clothing and shoes 37 %, • Social media and Web 2.0 books and magazines 35 %, tickets 31 % and • Virtual Worlds music and videos 29 % • Mobile marketing • Examples: Innovation E-retailing Trust in online markets (Salo & Karjaluoto 2007) • In Finland 2006 e-retailing was evaluated to be worth of 3.3 billions (Itella) • More than 2 million Finnish people have bought online • 29 % consumers buy online regularly • And 25-34 olds are activbe buyers • 86 % of consumers have bought from Finnish shops (TNS Gallup 09) • E-retailing evaluated to grow 17% during next five years 4
  5. 5. E-mailing E-mailing • Emails have impact on buying decisions: • Advertisers choices: – Actively send emails to different groups – spamming • 77 % of men and 81 % women think jointly to what type of social events like concert, movies, – Create interesting newsletter – better choice restaurants etc to go to with help of the email – Help customers to speak about the products in their emails to friends – innovative • Safe strategy – all above ! • 78 % of women share plans about their trips • Cultural differences: In B2B markets best choice in • Younger generation discuss consumption of Australia is e-newsletter informing about products music and services while in Brazil send good quality printed paper Websites Websites • Websites (static – dynamic): • Evaluations from perspective of users / customer / investor – Information for consumers, customers, decision makers, investors etc. – Company and product information amount & quality – Brand awareness – Customer service (replying e-mails, chat possibilities – $, £. € revenues faqs) – Trust and security of sites critical for those that enable • Company websites shopping (see. Salo & Karjaluoto, 2007). – Ease of use and navigation • Evaluated by number of ranking organizations and institutions • Ease of use and navigational issues give direction to how good is the ”flow” of the site or how ”sticky” the site is • Usually best sites in Finland are Nokia, Wärtsilä ja Neste Oil. • Flow= positive overall feeling • Sticky= time customers stay at the site (nowadays also what they are doing is important) 28 Web advertising Web advertising • Evolved from informative websites • Traditional web advertising • Classified ad (e.g. • 1995 first banner ads appeared • Banner = graphic display keyword banner, appears on the search engine when keyword • To some extent targeted inserted, random banners, dynamic – based on user info banners e.g. Facebook) • Pop up pop up/under, interstitial(between clicks • Information about effectiveness – comparing / downloading used to capture attention, similar e.g. newspaper advertising to TV-commercials) • Advergames (in game, branded game, between games) • Call to action – from click to shop • Static – dynamic • 24/7/365 • Counter software development to eliminate these 29 30 5
  6. 6. Web advertising measurements Web advertising effectiveness • Ad view = number of times customer calls up the page, • To some extent targeted: • Synonyms : impression or page view • Price for a Facebook ad for a month 30.000€ ? • Click, ad click: visitor clicking the banner • Many brands involved • Not always optimally targeted • CPM=cost per thousands impressions: Fee for a 1000 page clicks • Conversion rate = percentage of clickers who buy, usually with • Targeted: non-targeted without permission, non personalized low ! • Permission based, existing customer relationship with a brand (well known, trusted brand) • Click through ratio= Number of clicks / times seen – success of banner ad • Customers want to keep up the relationship ( favorite nightclub…) • Click through rate= number of visitors exposed to a banner and click it • Eye-tracking ! 31 Digital Marketing - Salo 32 Search engine marketing and optimization Search engine marketing and optimization • Google is one of websites used daily (development of Bing by • Searh engine marketing – advertising Microsoft) • Search engine optimization • Even professional buyers use it • When customers are looking for steel producers or make up • Mobile search engine marketing / optimization providers your company must be present (preferably first or second at the list) and offer customer experiences that engage online • Search engine marketing can be divided into advertising in search engines and Search engine optimization (SEO) • Use of mobile phones and other mobile gadgets is one specific are of search engine marketing • Search engines Google, Bing, Yahoo, Ask Jeeves (Ask), Dogpile 33 34 Search engine advertising Criticism on Google Adwords • Since companies are buying a search word for e.g. up to 500USD or • Using Googlen AdWords service any company (or as much as they will other companies when they know competing organization) can buy almost any keyword with a companies search word eat some of the search words paid by competitor certain amount (using creadit card) (see Turban et al., 2008 ja Poutiainen, 2007). • This is suitable e.g. for companies competing directly with those advertising (hotel advertising in web trying to sell directly – aggregators like • Launching anti-campaigns against some brands… • Aim is to consume competitors account so that customers are directed to other site • Rare but possible ! 35 36 6
  7. 7. Search engine optimization Search engine optimization • Basically the search engine ranking of any given webpage is based on two main factors: • In SEO website is modified to be more search – The keywords on that webpage. The more focused engine friendly i.e. the search engine understands and clear the content is on the webpage and the the site better- in order to get a better ranking at a clearer that content is indicated in the page’s title, search page metatags, headings and body text the greater are the chances of high ranking for the main keywords on that webpage. • In practice (those who know how to do it) this – The pattern of links to a domain name – quantity, means changing site structure, terms used, quality, and context of incoming links to its domain modification of links etc. see Langeville & Meyer name. 2006). Digital Marketing - Salo 37 38 Google AdSense Blogs is • In the AdSense service internet website operators • Created by someone to present ideas in text form usually like diary and owners (like bloggers with traffic) can gain • Blogs can include video and music (compare to v-blogs which use mainly fees from Google if they put banner to their video) website. • Possible places to blog: create own site, let someone provide you a blog (some costs) or blog to a someone's site (blog collecting sites making • In Adsense the advertiser gets more relevant money out of your blogging) content for the ad which makes the ad more • Why from DM marketing perspective interesting? relevant to the website. • According to Statistics Bureau of Finland in year 2008 38 % of Finns read blogs and 35 % write to different types of news forums. • For example, site that deals with new energy sources is more suitable for wind power company ads than showing that ad on forest industry specific portals. 39 40 Blog marketing basics Blogs and business Creating a blog that matters: • Collecting information: MI, CI, BI • Is interesting – creating new content • People want to comment and share ideas • Reacting to competitors announcements (new products, brand messages etc) • Some business leaders and visionaries can even develop their business and industry by influencing bloggers (strategies: own blogging site, commenting other blogs) • Collect ideas for new products, campaigns… • Advertising / new product launches etc. • Build up relationships (customers, partners, investors, • Especially corporate blogs are many times considered boring experts etc) (CEOs or CTOs telling about performance and new products) • Soften company image (directors blog) • Why? Almost identical print to press releases see Techworld, 2008). • Internal company blogs (internal marketing + creating /influencing organizational culture) 41 42 7
  8. 8. Some simple blog strategies RSS, Pod- vodcasts • Commenting those blogs important to your business • RSS Really Simple Syndification: (those that have influence) • A format for delivering regularly changing web • This activates and also keeps your company in content like weather, news, blogs, updates, voice ”beat/pulse” files etc, podcasts • Advertize on selected blog sites (about 25 % of web • Many news-related sites, weblogs and other online users visit blog sites) (International data) – getting the publishers syndicate their content as an RSS Feed to niche audience whoever wants it. • Create blogging tracking / analysis performance system • RSS solves a problem for people who regularly use the web. It allows you to easily stay informed by • Join blogs to RSS (Real simple syndication) / Mashups retrieving the latest content from the sites you are interested in. You save time by not needing to visit each site individually. 43 44 Pod- vodcasts Pod facts and strategies • Podcasts = Traditional Ipod voice files that • Nielsen/NetRatings survey conducted from 2005 to the customer has ordered from a source (short, long, present revealed that Internet users aged 25 to 34 are fact, fiction, music, radio shows etc) those who download more video podcasts. • See e.g. several hundreds of podcasts. • Video podcasts were among the top ten tech trend in 2006 achieving a level of Internet cult status. • Besides podcasts customer can order video content • ” Users can subscribe to vlogs to get the latest videos or and term used is vodcast/v-pods or video even the ones they missed and then have them podcasting. automatically sent to their computer desktop. • In DM new terms are created eventough we don’t • Create, advertise, increase user experience by engaging necessarily need those – acronym battles ! a community to create pods/vpods. 45 46 Pod strategies Blogs and pods (industrial company interviews) Passive strategy: – What other companies are posting on external pods and vods. Marketing intelligence and industry trends follow ups. Active strategy: – Pods /vods created and casted that fit company strategy and image. If customers are active and eager to use digital tools then active strategy is suitable. Company can also sponsor some pod/vodcasts or directly advertise in those. Especially technical solutions and innovations seem to be adopted quicker if information is available from many sources including pods/vods. • Lehtimäki et al. 2009 • Some thinking points: identifying right pods/vods, coverage, costs, audience type, etc 47 48 8
  9. 9. DM landscape Webcast - webinar Wikis • Direct webcast - streaming media • Form of social writing when multiple users modify content (like in Wikipedia) • Finnish industrial companies (Outopedia etc) • One or multiple receivers • Idea is to develop community which collects information – Can enhance/create brand relationship • Meeting, education (e.g. Elmar webcasts), – can be used to educate new personnel ! speech, football match etc – Include video and simulation – interactivity – To further develop ideas (see Ryan & Jones, 2009). 49 50 Webcast use and performance Liverpool webcast • Decrease travel and conference /meeting costs • Registrations to webcasts – known recipients – voting systems • Webcast system reports (activity of people and activities done) (e.g. everyone must click/vote ”can not sleep” while watching -First live audio commentary for free -Then video archieve, downloads and • Webcast analytics afterwards merchandising - After that pay-per-view 51 52 Liverpool - results Technical detail: Mashups • Webpage or Website that combines information and services • from multiple sources on the Web. Information and/or complementary functionality from multiple Web sites or Web applications can be mashed up. • E-season ticket $ 7.85 month all digital material • Web mashup server lets you connect, collect, and mash up anything on the Web as well as data on some back-end systems. • Online presence seen as brand platform • Picture – location Google maps –Flickr/Panorami • Alerts as ad channel • Seven categories: – mapping, – search, • 3 million unique visits per month – mobile, – messaging, – sports, – shopping, – and movies. • More than 40 percent of mashups are mapping mashups (see 53 Vlist et al 2006) Digital Marketing - Salo 54 9
  10. 10. Tags, social bookmarking, physical browsing, games= geo- Technical detail: Mashups treasure hunt • HousingMaps ( • Keywords added to articles in blogs or Web pages via social page tag tools such as • It pulls sales and rental information from the classified ( Technorati,and Yahoo’s My Web. advertisement Web site Craigslist (http://www.craigslist. com) and displays the listings on interactive maps pulled from Google Maps. Users can drag the map to see what is available for sale • Most blogs and Web publications use tags. Tags are also or rent in a given region. Several other new-breed Web known as labels, and the process of creating tags is applications similarly integrate multiple services under a rich known as tagging. user interface. – • Social bookmarking is the process by which users – Hotels on Google etc. bookmark interesting pages and assign tags to each. – For personal use as well Users can then share their tagged bookmarks (see, for example • It’s easier and quicker to create a mashup than to code an application from scratch in a traditional way. This capability is one of Web 2.0’s most important and valuable feature. • Social bookmarking is a great way of capturing contextual knowledge (photos of Rio de Janeiro or Sodankylä tagged and presented on a map etc) Digital Marketing - Salo 55 Digital Marketing - Salo 56 Tags, social bookmarking, physical browsing, games= geo- treasure hunt Webisode, Digi/mobile/internet - TV • Physical browsing, objects marked with readable tags (RFID or similar) • Movie / series / preview / promo episodes downloadable online (download or stream) – See e.g. NBC webisodes sponsored by… Sprint etc • Route or objects marked or presented on website • Digi/mobile/online TV portals • Using mobile phone or other device to reads tags – See e.g. MTV3 Katsomo and browse information • Digi/mobile/online movie portals • Near field communication (NFC) technology • Different types of news/fan ”groups” or websites • Combined to a game geohunt (treasure hunt – outdoors= Digital Marketing - Salo 57 Digital Marketing - Salo 58 Widgets Widgets • Widgets are mini applications that provide a single utility • Widgets that reside locally are useful only to the person or service to the user like the current weather or a who installed them. dictionary. • Ten thousand installs means an engaged audience of ten • They can reside either locally on a computer thousand. • Widgets that need to be downloaded onto the computer • Widgets that appear on a personal site or blog are seen or on HTML like those provided by Typepad for its and potentially used by all of that site's visitors. Here, bloggers. ten thousand installs could mean that actually the application is used by hundreds of thousands. • When the widgets are intended to sit on web pages, like some popular blogs, it is important that the visitors of the site are the target group for the marketer, as with banner advertising. Digital Marketing - Salo 59 Digital Marketing - Salo 60 10
  11. 11. Widgets Webopinions • Widgets can be used for brand building efforts • User opinions • Recommendations • Their function is less to drive traffic on the website • Bias / or not but more to engage users to the brand (Pishevar • Impact on CB 2006). • The success of a widget can be measured by the amount of downloads and usage. • Acura: Developed the Acura RDX Traffic widget that delivers real-time information about traffic flow, traffic incidents, road construction, and traffic speed of specific area to a user's computer. Digital Marketing - Salo 61 Digital Marketing - Salo 62 Digital marketing landscape Digital marketing landscape Entertainment industry pushed Pull for consumer generated • User generated content (UGC) content content • Entertainment industry as • Consumers/Users create and • Sharing others content and specifically created own creators of the content publish content content • Music industry companies • Fans sending movie clips to be create videos for bands included in the video of their • User can be a individual, company, non-profit favorite band organization or government • Newspapers and TV-stations are publishing reports by • CNN etc. Send your videos and professional reporters pictures concerning current events (Hudson River plane crash, Mumbai – mobile videos, pictures, Tweeting) Digital Marketing - Salo 63 Digital Marketing - Salo 64 UGC: From broadcasters to audience driven content UGC: Digital marketing landscape 65 66 11
  12. 12. Digital marketing landscape Twitter: short message service • User generated content (UGC) • Places to share content and publish your own content – CNN (iReport) – Youtube – Flickr (photo management and sharing) – Helsingin Sanomat (send a picture) – Creating a blog (see e.g. – Twitter – Slideshare (consulting, teaching – demonstrating Gosalves, Antone: “Dell Makes $3 Million for Twitter- experience) related Sales”, InformationWeek 12 Jun 2009 @ delloutlet=600.000 followers Digital Marketing - Salo 67 Digital Marketing - Salo 68 Digital marketing landscape Digital marketing landscape • Teaching • Further education • Tele, satellite, video broadcastings Digital Marketing - Salo 69 Digital Marketing - Salo 70 Digital marketing landscape Digital marketing landscape Social media & web 2.0 • Social media is a term that refers to services based on a sense of community, information generation and sharing (Hintikka 2008) • Social media is a term that refers to services based on a sense of community, information generation and sharing (Hintikka 2008) and it also includes web 2.0 technologies (Lehtimäki, Salo, Hiltula & Lankinen 2009) Digital Marketing - Salo 71 Digital Marketing - Salo 72 12
  13. 13. Digital marketing landscape • Lehtimäki, Salo, Hiltula & Lankinen 2009 73 74 Digital marketing landscape Digital marketing landscape Social media in the music industry Web 2.0 marketing Sony Indie Scandie Affiliate Consumers actions attitude Asking to join a X X X + community Advertising new X X X + songs and albums Promoting concerts X X X X + Advertising fan X X X + merchandise Up loading videos to X X X X + e.g. YuoTube Asking to tell friends X - Advance listenings X + Salo & Härkönen 2009 Digital Marketing - Salo 75 Digital Marketing - Salo 76 Digital marketing landscape Digital marketing landscape • Social media, communities and NPD • Social media and online communities provide new ways for companies to digitize business: – Front end of Innovation - ideas – NSD/NPD – Testing • Creating own communities / participate established communities – Inform about new products – Ask review and recommendations Apple Ipod • Competitions and games Nike Nissan Dell • Press events & education virtually Digital Marketing - Salo 77 78 13
  14. 14. Digital marketing landscape Virtual worlds • 3D online world. Sense of presence and simultaneous experience in context • Avatar is used to present you (or not) • There are over dozens of virtual worlds: Second life, Kaneva, There, Habbo Hotel • Virtual worlds vs. MMORPGs (massive multiplayer online role playing game i.e. games like World of Warcraft 12 million users) • Simsonline, EVEonline etc 79 Digital Marketing - Salo 80 Digital marketing landscape Digital marketing landscape • Virtual businesses & brands Business purposes: • Virtual world developers and agencies • Education & Training • Communication & collaboration • Sales • Virtual world providers •Branding • Innovation • 3D physics engines and 3D modelling platforms Digital Marketing - Salo 81 Digital marketing landscape Digital marketing landscape MoiPal (cross platform PC+mobile) 83 84 14
  15. 15. Digital marketing landscape Digital marketing landscape DM and innovation Use for innovation • Coke: Virtual Thirst ”send ideas for portable virtual • Observation of consumer behavior - generating vending machine” new ideas and improving products, retail store • Steelcase: ”design new innovative executive chair” layouts etc Kohler 2008 • BMW: BMW series 1 Use Facebook application • Evaluation of the new product ideas graffiti wall to design new and customize your BMW 1. Over 10.000 participated and 600.000 voted for a best design • Actively generating new ideas • T-shirts… • Concept testing and design 85 Digital Marketing - Salo 86 Digital marketing landscape Digital marketing landscape DM communities taxonomy (Salo & Härkönen 2009) Mobile technologies introduction Content creation and sharing MySpace High YouTube Flickr Facebook Habbo Hotel LinkedIn Second Life Classmates services Low Low High Social orientation 87 88 Digital marketing landscape Current status of mobile markets • Voice and SMSs no. 1 services • Handset technologies • The penetration of 3G and ”smartphones” continues to grow – Especially in Western and Asian markets • Network technologies • Consumers are starting to use more mobile services other than SMS and voice • Application technologies • However: – The penetration of advanced mobile services has been slower than expected – Still relatively few mobile service success stories Changes in consumer behavior take time, the benefits (for both consumers and companies) dependent on the critical mass 89 Digital Marketing - Salo 90 15
  16. 16. Introduction to mobile technologies – consumer Introduction to mobile technologies – company perspective perspective • Mobile technologies used within companies are many times internally focused (e.g. mobile office solutions) Context Informati – Market-Vision conducted survey in Finland in 2008 and 46 % of Personal Interactive Entertainment companies use some kind of mobile solution sensitive on Value – In the forest industry 68 % companies are using mobile Require solutions ments – 84 % aims to improve their processes with mobile technologies (Salo & Tähtinen 2004) • Some studies highlight the role of mobile technologies in Mobile marketing usage business relationships (e.g.) – J22. Salo, J. (2009). The role of mobile technology in a buyer- Marketing Customization supplier relationship. Journal of Business & Industrial Marketing. content & targeting of (in press). advertising 91 92 General trends: Trends • The importance of the Internet • “Time poverty” – Demands for the efficiency of time use increasing – Increasing consumer power: • Information available for consumers is constantly increasing – Consumers demand more complete and complex services. Simultaneously, they are willing to invest less time in the • Competition for consumers is constantly increasing purchase process – Randall Travel Marketing (2006): Top ten travel and tourism trends: • Demographic changes - The emergence of ”m-generation” as • 78% of all purchase decisions based on internet-based relevant market player, huge business opportunities product information – LSE study (08/2006):”UK youth prefer mobile over TV” • 56 % use the Internet as sole information channel • Consumers value the opportunity to participate in value creation – Mobility is BIG, especially in Finland – Yet, the Internet already builds upon human mobility • Consumers value multichannel service Digital Marketing - Salo 93 Digital Marketing - Salo 94 Business perspective change: from value chains to value networks i-Phone facts: • Rubicon Consulting (2008): Customer driven • A third of iPhone users carry a second phone Service- enhanced VALUENET • A quarter of iPhone users say it’s displacing a notebook computer customization - Digital system - Customer driven ideas • 28% of iPhone users surveyed said strongly that they often carry their iPhone - ”open innovation” instead of a notebook computer • The iPhone increases phone bills. – The iPhone has increased its users’ monthly mobile phone bills by an average of 24%, or $228 extra per year • E-mail is the #1 function – The most heavily used data function on the iPhone is reading (but not Industrial age writing) e-mail corporation Supplier driven • Note: iPhone data is skewed towards the early adopters Mass production Physical INFRASTRUCTURE Digital / OFFERING Digital Marketing - Salo 95 Digital Marketing - Salo 96 16
  17. 17. Results from Rotuaari -project Mobile Marketing • University of Oulu’s multidisciplinary research project which studied mobile services • SMS/MMS/Web – Case Onnela (studied in Fummas • 6 mobile services field trials implemented during project) 2003-2006 • Video clips – SmartRotuaari1, 2 &3, TiernaJack, MobileKärpät, • Music SmartCampus • Games – Almost 2000 consumers/end users surveyed • Internet – Hundreds of interviews • The main result - Consumers valued: – Location-based, context-specific services – Multichannel services – Community services Digital Marketing - Salo 97 Digital Marketing - Salo 98 Mobile marketing process Mobile marketing recall Salo et al., 2008 Digital Marketing - Salo 99 Digital Marketing - Salo 100 Mobile sources of value Advertising mediums compared • Peer content creation • Presence, personalization, location and context- awareness • Multi-channel services • Mobile marketing, M-CRM • Social media, virtual communities • User experience – Coherent user experience in multi-device environments – Ease of use still most important ! Salo & Karjaluoto 2007 Digital Marketing - Salo 101 Digital Marketing - Salo 102 17
  18. 18. Digital marketing in practice Homework and thinking exercise Role of DM in 2008 Role of DM now / future • How (why, for what) different companies (B2C/B2B) can use SEO and • Try (everybody else is in Second life • Improve (why we are using SE marketing? and Twitter) these, how many customers with what costs, cost of brand awareness etc.) • How (why, for what) different companies (B2C/B2B) can use social networks/social media? • Trial campaigns and problems (like in mobile marketing in 2002) • Central part of company Marketing actions (sales, • How (why, for what) different companies (B2C/B2B) can use virtual advertising, R&D, CRM + worlds? budget) • Belonging to a social web / • How (why, for what) different companies (B2C/B2B) can use mobile community –presence (like in internet marketing? marketing 1995-2000) • Creating and leveraging communities for business • DM strategic or peripheral? • Something new and shiny: blogs, wikis, webinars, webisodes, twitter, • New and shiny: Where's the etc. beef for company value, brand value, CRM, Sales, NPD/R&D (value, roi, effectiveness) Digital Marketing - Salo 103 Digital Marketing - Salo 104 18