PROMOTIONS2.0 The future of interactive marketing
The Big ShiftAdvertising isn’t what it used to be
N ew technologies, fragmente d media, and a newgeneration of emp owered consumers are rapidly changing the world of advertising...
We’re Spending Less Time Here...Radio TV Print-19% -33% -30% Time spent with traditional media is declining Arbitron Research: Internet and Multimedia Study
...And More Time Here.New technologies are captivating consumers
Media fragmentation is increasing.In 1971, the averageperson encountered approximately 500ad messages a dayDavid Schenk, Marketing Smog
7 Today, that number is almost5,000 making it harder to engage consumers.David Schenk, Marketing Smog
A dvert ising O nline flat with ve been “CPM Rates ha years.” ults for the past 2declining res now .01% ough rates Average click thr Paid Search “Losing its luster and expe cted to peak this year, followed by a decline.” Borell Associa tes: The Big S hift Research Report (April 2008)
Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 millionUS consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million110 million mobile Browse the web from their mobile phone** Participate in customerSocial Networks* PASSIVE 95 million Participate in community producer 50 million online Contests Have created online content* & Sweepstakes**** participant*Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
30.0 2008 2012 22.5($ in Billions) 15.0 7.5 0 Promotions Email Search Video Display Online Promotions Spending expected to surpass other online advertising categories over the next 5 years. Source: Borell Associates inc. 2008
Because promotions deliver results...60% 80% 82%of US consumers of online of consumershave purchased consumers have will provide personala brand due to a entered a information in exchangepromotion.* sweepstakes.** for a chance to win.****IMI International **eMarketer ***Jupiter Research: Online Privacy Report
The New Marketing Mix Digital Promotions + Advertising Quadrant 4 = most value Increased Value Increased ValueHigh Promotions + Advertising 4 Increased relevance & entertainment By combining digital promotions & 2 4 advertising both relevance & entertainment value is increased moving closer to Quadrant 4. >> Relevant Brand Advertising 3 Low Relevance - High Creative 1 3 2 Local or Niche High Relevance - Low Creative Mass Marketing 1Low Low Relevance - Low Creative Low > Entertaining > High Relevance & Entertainment* 2 axis that create consumer value in marketing: While all marketing is capable of playing in quadrant four, no single medium has broken through. Source: Joseph Jaffe
Old Marketing New Marketing Spray & Pray Attract & EngageLarge Audience Smaller Audiences Low Relevance High Relevance Low Return High Return
Promotions 2.0Marketers are using digital promotions today to create buzz & cut through the clutter
Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand EngagementBrand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement
70%of CPG Super Bowl Advertisersused interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine
User Generated Contestsdeep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenuewinning USA TODAYS 2009 Super Bowl Ad Meter
Advergames brand messages become viral brand experiences30% of Super Bowl viewers say they are more likely to visit an advertisers Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll
Advergames brand messages become viral brand experiences 40 30 20 10 0Advergames Video Tell-a-FriendAdvergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey
Mobile Integration participation anytime or anywhereLargest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit
Inclusive Experiences Everyone wins something. Someone wins everything.One person win a trip to the World Series One college wins a private concert Everyone wins a taco if base with the Dave Matthews Band is stolen during the game Everyone watches online
Social Promotions promotions worth talking about Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers**People Magazine: 3.6 million readers monthly** *Comscore **infoplease.com
Promotion HellPoor planning can lead to big problems
Warning!Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.
Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of)No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
Rock the VoteStarbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”
Pepsi Stuffed Harrier Jet a steal at 700,000,000 pointsStudent sues over deceptive advertising & business practices after acquiring enough points to purchase Jet. Result: Out of court settlement and a whole lot of bad PR.
Promotions 3.0What’s next for advertising & promotions?
Clutter ContinuesBrands will look for new ways to engage consumers as media & product proliferation expands M
Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit
Social Media Expands Social Media is bigger than you think... and it’s just getting startedU.S. Social Network UsageAll Adults 35%Adults 18-24 75%* Pew Internet & American Life Project, December 2008
Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers
David Griffith is managing director of +teamDigital, a brand based digital agencyspecializing in technology driven promotionsthat engage consumers, create loyalty, andincrease brand value.Blogwww.Promotions2.comWebsitewww.teamDigital.com