DigiMarketing

Key Tenets of Digital Marketing May 2008

From “Perpetual (Digital) Revolution”

Together, hardware and software will be the catalyst for advances during the next 10 years that will far exceed changes of the last 30 years.
Mr. Bill Gates, AWSJ, January 25, 2008

Tectonic Shifts

Traditional Media

Digital Media

Traditional Media

Digital Media

Traditional Media

Digital Media

TV Radio Billboards

IPTV Digital Radio Digital POS

Traditional Media

Digital Media

US $455b

US $55b

6%
Source: IBM, “Navigating the Media Divide” Study

23%

Traditional Media

Digital Media

?
The Cross-Over Point

Why GM Gambled $1.5B On Digital
Over the next three years, General Motors will shift half of its advertising budget to digital. Will that be enough to get the automobile manufacturer in gear?
Michael Estrin is associate editor at iMediaConnection.

Ongoing Confidence Gap
30% 25% 20% 15%
The Marketing Confidence Gap

10% 5% 0% 2003 2004 2005 2006 2007 2008 (E)

% Consumer Time Spent Online % Advertising Dollars Spent Online

Source:Neo@Ogilvy

digital will predominate

Traditional Marketing

DigiMarketing

01

From “New Media” to the New Mass Media (of One)

Worldwide Today
0.9 b PC users 1.3 b internet users 1.3 b landline phones 1.4 b credit cards 1.5 b email boxes (0.8b) 1.5 b TVs 1.8 b active sms users 3. 0b mobile phone subscribers

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

New Media Barons

(cc) Lynette Webb, 2006

?

“Radio in My Head”

Yuan Shiao Nan

Mass Media of One (Addressability)
- Unique address - Individual user behavior - Personal settings & preferences - Two-way – individual direct response - Contextual content

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

02

From Targets to Participants

Marketing Algorithm of Reach/Frequency

Engagement Metrics & Planning

03

From Mass to Personalization (and the Privacy Paradox)

Ease and Stress
Ease and Frequency Stress

Access and Restriction
Unprecedented Access New Restrictions

Tim Berners-Lee, BBC Interview, March 18, 2008:

On personal data: “It’s mine – you can’t have it. If you want to use it for something, then you have to negotiate with me. I have to agree. I have to understand what I’m getting in return.”

August 4, 2006: AOL released search records of 650,000 users over a 3-month period, 20 m searches August 7, 2006: they removed the file from their site August 9, 2006: New York Times identified & interviewed #4417749 August 22, 2006: AOL Chief Tech Officer & 2 others “left”

September 12 2007:

Why personalize?

80%
want it
Up to

58%
will pay more attention if they get it!

04

From Selling to Serving

05

From Impressions to New Connections

QR Codes

Each one of these MOBICODES link to a specific mobile site.

Quick Response (QR) Code for North West Airlines

QR-Codes - MAGGI On-pack Communication

Inside Package

Outside Package

Outside Code to introduce MAGGI Recipe
1st week 2nd week 3rd week

New Connections

HKIA Program

06

From Old to New “Physics” of Marketing

August 23, 2004

A MAJOR MEDIA REVOLUTION HAS JUST OCCURRED…
Consumers Spent More to Reach Media Than Marketers Spent to Reach Them. For years, the consumer went along with a model of intrusion perpetuated by the networks, advertisers and ad agencies… The consumer has decided to take over… Consumers are willing to pay for personalized information and entertainment that fits their interests.

User

Generated

Content

Distribution Power Growing

You Tube: 58 Million monthly viewers*

Leverage Impacted of Viral

X
Viral video

• Seen by and estimated 500MM people globally • Equivalent value of $150MM+ in media

12 DigiMarketing Shifts
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. From Traditional To DigiMarketing Viewers………………………………………… Participants Impressions……………………………………. Involvement Broadcast Mindset……………………………. Addressable Mindset Schedule-Driven………………………………. Time-shifted, Borderless Marketer-Driven………………………………..Consumer-Initiated Push Marketing…………………………………Opt-in and Share Traditional Media Planning……………………New Media Planning Managed PR……………………………………Digital Influence Integrated Marketing…………………………..Unified Marketing Data-Blind……………………………………….Data-Driven Post-Campaign………………………………….Real-time Partial ROI...…………………………………….Optimization

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