IIPM

Advertising Desk Project
Future is the Digital Marketing
Kanika Gupta FN1111 Surabhi Singh FN1111 Somya Jayaswal FN1111 Shivendra Singh FN1111 Saket Bajla FN1111
10/5/2009

This paper gives an insight into how marketers can put digital marketing to use and target their potential consumers. The future of digital marketing is very promising is what has been discussed in detail.

Respect is the key d. Types of digital marketing 3. Conclusion . The future is unknowable – but it’s already here. Digital Marketing (intro) a. c. Push b. Basics aren’t enough 7. 2009: The year in digital marketing a.List of Contents 1. The future of digital marketing is the future of marketing b. Example 6. Advantages of Digital Marketing 4. Digital marketing Pull Vs. Acknowledgement 2. Disadvantages of Digital Marketing 5. Future of digital marketing a.

.Acknowledgement We would like to thank our professor for unbiased attention in the classroom that enabled us to successfully complete this project.

relevant. users have a specific link (URL) to view the content. Pull Pull digital marketing technologies involve the user having to seek out and directly grab (or pull) the content via web searches. As a result of this non-reliance on the Internet. Push There are 2 different forms of digital marketing. personal and cost-effective manner. No regulations or opt-in process required. mobile and other interactive channels. Previously seen as a stand-alone service in its own right. each of which has its pros and cons. of the more traditional marketing areas such as Direct Marketing by providing the same method of communicating with an audience but in a digital fashion. if not all. Digital is now being broadened to support the "servicing" and "engagement" of customers.Digital Marketing Digital Marketing is the promoting of brands using the Internet. . Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely. Cons: • Considerable marketing effort required for users to find the message/content. Web site/blogs and streaming media (audio and video) are good examples of this. Digital Marketing – Pull vs. display / banner ads and digital outdoor. it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. sms/mms. In each of these examples. Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing. only to store/display it. the field of digital marketing includes a whole host of elements such as mobile phones. Pros: No restrictions in terms of type of content or size as the user determine what they want. • • No technology required to send the content. it is frequently being seen as a domain that can and does cover most.

etc. Types of Digital Marketing • • Banner Ad It is an advertisement that appears on a Web page. the marketer has to send (push) the messages to the users (subscribers) in order for the message to be received. . 21 years old or over and living in California. from an email marketing system to RSS feeders.• • Limited tracking capabilities – only total downloads. High Return on Investment (ROI) possible – if executed the right way. Email. In each of these examples. Designed to have the user click on it for more information Blog Shortened from “web log” a blog is a user-generated Web site where entries are made in journal style and displayed in a reverse chronological order. most commonly at the top (header) or bottom (footer) of the page. from minor (RSS) to heavily controlled (email and text messaging) Requires mechanism to deliver content – the marketer has to use an application to send the message. page views.messages received can be highly targeted and specific to selected criteria – like a special offer for females. Detailed tracking and reporting – marketers can see not only how many people saw their message but also specific information about each user such as their name as well as demographic and psychographic data. RSS are examples of push digital marketing. No personalization – content is received and viewed the same across all audiences Push Push digital marketing technologies involve both the marketer (creator of the message) as well as the recipients (the user). SMS. Delivery can be blocked – if the marketer does not follow the regulations set forth by each push message type. • • Cons: • Compliance issue – each push messaging technology has its own set of regulations. the content can be refused or rejected before getting to the intended recipient. Pros: • Can be personalized -. push messaging can help drive new revenue as well as brand reinforcement.

state. A user types a short code and matching keyword in order to be added to a mobile club or database. It can be addressed by first/last name. which is often associated with the entertainment industry. Keywords It is used in conjunction with SMS messages. This is often referred to as CTR (Click Through Rate). featuring these subscribers' email addresses and names. Click Through The number of times people clicked on the links in your message. Such a list is known as an opt-in list because users choose to receive the emails. etc. RSS . Used often with contests or as a landing page for a specific promotion. This includes all aspects of dialogue through the social web and on the brand's own website. Personalization Personalization gives you the ability to create a customized message for each person in your database. Digital Brand Engagement It is a brand and consumer interaction through the Internet. Opt-In List Email marketers have databases of subscribers to their newsletters. city. Instant Messaging Instant messaging (often shortened to IM) is a type of communications service that enables you to create a kind of private chat room with another individual in order to communicate in real time over the Internet. Microsite It is a mini Web site design to promote a specific portion or brand from a larger corporate site.Campaign A campaign is a specific message being sent to a specific group of recipients. zip. DMA Market DMA stands for Designated Market Area.

often single. Can either be a voice call (meaning the recipient must answer the call for the message to play) or voice mail (meaning the message will play only if the recipient doesn’t answer ) Widget It is a small graphical device that does a highly focused. Streaming Technologies Communication channel such as video and audio that is accessed online. It can be a pre-stored clip to access as well as a live feed that is streamed like an online broadcast. Web widgets can be embedded in web pages or run on the desktop of a PC (Windows or Mac) using software such as Apple's Dashboard software or Yahoo! Widgets Engine. Social Bookmarking Social Bookmarking is a popular way to store. specific task. Targeting Targeting allows you to send a message to people based on specific criteria from your subscriber database.RSS or Real Simple Syndication is technology designed to allow users to subscribe to a specific content feed and be automatically alerted when new updates are available. classify. Subscriber Is a person who signs up to receive messages from a particular company or entity. Short Code A short code is a 5 digit number that is used to send and respond to text messages. share and search links that are combined into a single site for easy access. SMS SMS (Short Message Service) is a one-way text message sent via a cell phone. . Voice Broadcast Sending a pre-recorded voice messages to a large set of phone numbers at the time same. They can either be a random set of numbers or a “vanity” number tied to a specific brand or number pattern. It is usually received via the subscribers' text message inbox on their cell phone and can be a maximum of 160 characters per message.

Advantages of Digital Media There are numerous advantages to using to digital media. Printing costs are eliminated or at least substantially reduced. Using the latest technology for effective communication creates the impression that your company knows about the latest trends and solutions. Cost: • Full color designs cost the same as one color designs. every day. unlike print media where each color costs extra in the printing process. presentations. This makes you easier to remember and do business with. transported and displayed on a laptop.what a waste of money! • Disadvantages of Digital Marketing . • Targeting: • People who go to your web site after being specifically directed there are already interested in your goods and services and are more likely to buy from you. It also makes you appear competent and efficient. e-mail campaigns and business CD’s have a powerful impact on clients. Traditional mail shots may be sent to many people who have no interest at all in your current promotion and who simply throw away your expensive pamphlets . E-mail marketing enables promotions and specials to go out regularly and quickly. Electronic presentations can be stored. • • • Impact: • Well-designed websites. The distribution costs involved with e-mail marketing are negligible compared to the costs of mailing promotional literature or distributing flyers. These include: Convenience: • • • A website allows you to be available all day.without costly reprints and wasted copies of out-dated material. Changes to designs and information can be implemented easily and made available almost immediately . Focused e-mail campaigns also enable you to reach the people who are most likely to be interested in what you have to offer.

or are perceived to have done. and the type of text on the web page. It is difficult to keep them engaged. If you make a mistake.• Full of Viral Potential This can be negative too. • Search engine’s ranking criteria The way a site gets ranked is how relevant the search query matches to the content of the page. • Deliverability Difficulty of getting messages delivered through different internet service providers (ISPs). corporate firewalls and webmail systems. personalization and more frequent communications. then the news can spread far and wide within minutes. • Resource intensive Although email offers great opportunities for targeting. This will be very difficult to remedy and will be wholly counterproductive to any positive global marketing goals you may have achieved. • Render ability Difficulty of displaying the creative as intended within the in-box of different email reading systems. content and frequency which affect engagement and response. These have to be managed through communications preferences. additional people and technology resources are required to deliver these. some major factors that contribute are title tags. Though it’s not an exact science. . • Email response decay Email recipients are most responsive when they first subscribe to an email. • Communications preferences Recipients will have different preferences for email offers. meta tags.

There is ample evidence to support such a hypothesis. the companies who increased their marketing budget were as profitable as ones who cut back. In the US. The next 12 months will have a pivotal role in shaping the sector. the ones who invested in marketing were experiencing ROCE rates that were on average 3 times higher than those who didn't. digital marketing businesses will focus on digital’s cost benefits and demonstrable ROI in an effort to buck the trend. During those recessions.that have based their business model on using BPF money as profit in place of the traditional discount for volume buying. with a number of factors ranging from challenging trading conditions to advancing technology combining to make 2009 a landmark year in the industry’s development. The difference was that after the recession the return on capital employed (ROCE) increased to 4. While the economic downturn will continue to have an impact on every sector. there were three recessions between 1973 and 1991. Two years after recovery. For those agencies . but that windfall will disappear in 2009. this means client contracts will have to be drastically overhauled. There’s already been a major increase in activity.2009: The Year in Digital Marketing 2009 promises to be a critical year for the digital marketing industry. Google’s decision last year to lift their ban on gambling keywords is also likely to hit home in 2009.particularly the traditional media buyers .8% for those who cut their budgets. but in the long term it could be killing the business. For Example The withdrawal of Google’s Best Practice Funding on December 31st: Until now UK agencies have seen from 3% to 8% of their AdWords spend returned each quarter depending on how much money they place with Google and other qualifying factors.3% against -0. This is the message the marketing industry as a whole will look to make the central theme of 2009: In the short term cutting your budget might make the balance sheet look better. Social Media . but online gambling has the potential to be a top 3 vertical for Google within the next 3 months.

an expanding range of techniques has been applied by major brands seeking to harness the upsurge in interest. Mobile It is a buzz industry that has yet to produce anything to match the hype. but the mobile search marketing space could well begin to live up to its early promise in 2009. As consumers continue to flock online for video entertainment. we expect 2009 to witness an exponential increase in marketers’ use of the channel. brands will have increased their spending on mobile marketing by 150% by 2013 and do not anticipate any impact on budgets as a result of the economic downturn. No brand has yet to successfully mount a defensive campaign via the social networks. and we expect to see the sector take great strides in the coming year. Google’s Android and a raft of new touch screen devices have reignited both public and commercial interest. . YouTube has made its entire catalogue available in mobile format and Yahoo has expanded its mobile voice search offering. Google now offers location-specific mobile search results. While Lloyds TSB’s television adverts now appear on YouTube. and the practice is coming under increasing scrutiny. Apple’s iPhone.an online community and information portal built around the airline’s transatlantic services – have successfully demonstrated the potential power of social networks. we expect to see a further explosion in its use over the course of 2009. However. According to a recent survey conducted by 02. various technical breakthroughs have similarly enlivened the space. With a range of new handsets and dynamic applications now converging. While major brands have traditionally hesitated to embrace the phenomenon. if not applied with suitable expertise social marketing campaigns can have a negative impact. As a result. While new phones are awakening consumers to the mobile content market. the evidence suggests that 2009 will see unprecedented levels of activity as marketers move to exploit the new channel. Barclays successfully encouraged users to make their own films in one of its student campaigns.The use of social media as a marketing tool increased greatly in 2008 and that upwards trend is expected to continue as brand managers seek new and more cost effective ways of reaching their core audiences. Video While the application of online video as marketing tool has been growing steadily for a number of years. projects such as British Airways’ MetroTwin .

it will have to adapt in a radical way. The broad themes of the new media consumption landscape will be: • Media consumption will become less collective and more individual • Sophisticated. huge changes on the horizon. To date. including deciding when they will accept marketing messages and when they won’t • Metrics which measure ‘viewing’ rather than ‘engagement’ will disappear Marketing plays a vital business function in connecting consumers with things they want to buy.Future of Digital Marketing Marketing is undergoing a period of intense change. and consequently on how they consume marketing messages. There are. Developments in technology will be the catalyst for fundamental change in the ways consumers use media. and there are several inflection points on the horizon which will have a transformational effect. and in some sectors has led to revolutionary change. however. the emergence of digital technology has caused great debate. The proliferation of media has in some ways made demographic targeting easier. brand advertising has been affected in a more marginal way. But it has done this at precisely the same time that demographics have been declining in relevance as a predictor of consumer behavior. so that by the middle of the next decade every facet of marketing will have been changed radically by the digital revolution. While ‘small advertising’ such as classifiers and personals has moved online in a wholesale way. For marketing to service the new needs of business and for it to profit from rather than suffer from the changing world of media. Until very recently there has been little progress in targeting. multiple pathways to individual consumers will develop • All media relationships will become interactive to a greater or lesser extent • Consumers will increasingly determine their own use of media in a much more complete fashion. . Most innovation has been in the form of ‘media firsts’ – finding new places to stick advertising.

the word “digital” is becoming superfluous. • The importance of these three factors will compel marketers to exploit more fully than at present the inherent advantages of digital media.The new age of marketing we are about to enter will be about: • • Relevance: Relevance will be a key to ensuring that yours is among the few marketing messages with which your target consumer will truly engage. The Future of Digital Marketing Is the Future of Marketing Digital channels are increasingly crucial for all advertising and other communications with consumers. feeding back information to the brand. including relationships with media. Interaction: Interaction will offer individual consumers unique experiences. The Future is Unknowable—but it’s Already Here . In fact. Relationships: Relationships will be the vital pathways by which marketers reach consumers. with brands and with fellow consumers. including: • • • The addressability of individual consumers rather than a broadcast model Interactivity rather one way communication Learning about individuals and their behavior and using this information to determine what information and entertainment to service them with in the future.

Top tips: . Top tips: • Relevance for consumers means respecting their declared preferences. the explicit permissions they give and their right to privacy. Take the high ground. Respect Is Key In a world of behavioral targeting and the mountains of information being amassed about Internet users. But speakers and delegates seemed to share a sense of what it will be like. That breeds trust and will lower resistance to marketing messages. dogged by the recession and overwhelmed by the plethora of digital tools and channels available. Going Back to Basics • A recurring refrain in all the industry sessions.Few speakers were prepared to predict the future. one or two genuinely new technologies will burst on the scene. But most “innovations” in marketing will be new applications of technologies already available. transparency is more important than ever. or using augmented-reality programs in mobile phones to display full product and price information for items viewed in the physical world. Within a few years. need to get the essentials right. Give people access to their own information. Marketers of all stripes. such as using Google Earth more to provide local context for travel destinations online.

brand consistency and leveraging existing assets. Consistent.” Don’t average cost-per-click data over entire campaigns. Maximizing coverage of your owned and bought media in the press can multiply your exposure many-fold. Make sure navigation and content are efficient and up to date. Assess the media you own (content assets. Basics Aren’t Enough • • • • • • • • Somewhat paradoxically. the media you buy and the media exposure you earn (mentions in major newspapers or industry news sources. If you claim to act on your customers’ declared interests. Search: It may not be sexy. such as iPhone applications or widgets that make key activities portable. Set deadlines and keep them. and provide tools they can use to spread the word. end-to-end branding. make sure it shows. Get that right before rolling out elsewhere. Website and so on). for example). Make your money go further. higher-value consumer experience—aka “magic. not high volume. Know what’s working. Tailor content to your site visitors and the recipients of your e-mail campaigns. Concentrate on home markets first. clear calls to action. clarity. Cool tools are best. Ease of use for consumers is increasingly important.• Website optimization. easily accessible—and fun. Work backward from where you want your business to be in six months to establish marketing plans. To see underlying patterns. Make simple. Many speakers stressed the importance of getting beyond the predictable and the merely adequate to deliver an unexpected. but it remains “the lifeblood of marketing.” Top tips: • • Think high value. you need to get granular. If you can’t see reaching the goal you set. services and USP are crystal clear to consumers. Avoid fake personalization. this theme went hand in hand with hard advice on Web analytics. rethink the goal. • • . Empower your advocates. and fix what’s not. and remove dead links. Ensure your products.

a recent CMO Council study surveying more than 650 worldwide marketers indicated that a majority of marketers’ traditional advertising — such as outdoor. Consumer preferences are also shifting in favor of the digital landscape as it provides more options and information. but their digital advertising. In fact. If you run a travel site. . Conclusion More traditional marketing budgets are shifting toward digital mediums at a rapid pace. predictive analytics reports and industry benchmarks. marketers need to be informed with key performance indicators. and. intriguing option in an otherwise predictable list of hotels in Florida can remind users of something often forgotten these days: Serendipity is central to the online experience. Consumer behavior will continue to change as technology evolves and new information portals capture the user’s attention. and those who do not rise to meet their customers’ expectations and demands — through digital channels and traditional mediums alike — will miss out on ample opportunities for success. how often they receive it and which channels they’d prefer. it’s measurable in ways that traditional advertising is not. Moreover. The state of the digital media landscape will not remain constant. Today’s consumers want to customize the type of information they receive. importantly. would increase. Digital marketing is typically more cost-effective and responsive. fosters immediate customer engagement. even when economic conditions stabilize. Industry analysts predict that online ad investment will grow over the next few years. print and television — would remain the same.• Use an element of surprise to spark excitement and interest. increasing consumer adoption of the Internet will create valuable opportunities for brand advertisers to engage audiences with rich media and video ads. and for good reason. To keep up with this ever-changing phenomenon and strategize accordingly. delivering one unexpected. but off-line ad spending will be relatively less robust and increase at a lower rate. It’s a challenging paradox for marketers. Online ad spending — and especially paid search spending — is expected to remain resistant to short-term economic slowdown. while giving users greater influence and control over the relationships and experiences they have with brands. including social media and search marketing.

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