A presentation on digital marketing given to several of South America's leading advertising agencies in May 2007.
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Digital Marketing
1. Digital Marketing - The Future is Now! Sao Paulo, May, 2007 Casper M øller, CEO
2. INDEX SLIDE INSERTED HERE!!! INDEX Introduction What is Digital Marketing? The Opportunity Why Use Digital Marketing? How Can You Use Digital Marketing? Digital Marketing Strategy
9. THE WORLD IS CHANGING … WHETHER WE LIKE IT OR NOT
10. “ If you don’t like change, you’re going to like irrelevance even less.” General Eric Shinseki, Former Chief of Staff, U.S. Army
11. Female Fever Eco-ecosystem Post-consumerism Modernism Generation C Transumerism Innovation Hypertasking LIFE CACHING MASSCLUSIVITY PLANNED SPONTANEITY CONFUSION Too many trends, and not a lot you can do about them Gravanity FLORIDASATION 5*STAR*LIVING Counter-Googling Dormandise EARLY BIRDING Diaspora Management HOME TROTTING IT-ISM MATURIALISM NOUVEAU NICHE POP-UP RETAIL SNOBMODDITIES SYMPVERTISING TRYVERTISING YOUNIVERSAL BRANDING VIRTUAL ANTHROPOLOGY BEING SPACES
52. DIGITAL CHANNELS DIGITAL CHANNELS PODCASTS GAMES E-MAIL MOBILE PHONES VIRAL ELEMENTS VIDEO INSTANT MESSAGING BLOGS WEB SITES SEM BANNERS Some examples of digital channels
78. Global, extensive reach More than 1 billion Internet users in the world 250 million have broadband Source: eMarketer, May 2006 THE NUMBERS
79. 62% of UK population is now online & 71% are using broadband Source: IAB 2005 Broadband users are far more active online, spending twice as long online as narrowband users and viewing 3.5 times as many web pages * UPTAKE HAS BEEN FAST
80. It is currently a relatively small market… In Turkey: 16 million Internet users 2.5 million broadband users – 1.72 end of 2005 Source: CIA World Factbook, 2005 Source: wi-fitechnology.com & Quantum-Web TURKEY
81. But one that is growing fast!! In 2015: 24 million broadband users in Turkey CAGR: 31%! Source: Quantum-Web TURKEY
82. Phones: 20 million fixed lines in Turkey 48.7 million mobile phone users Source: Turkcell, Telecommunications Authority, 2006 TURKEY
83. 26% of people’s media time is spent online on an average weekday Source: BMRB Internet Monitor 2005 MEDIA CONSUMPTION
84. Q: If you had to live on a deserted island and could take only one of the following with you, which would you take? Base = 1,000 online households Source: Ipsos U.S. Express, August 2004 CHANGING MEDIA CONSUMPTION Consumers can’t live without the Internet INTERNET Newspaper subscription 1 % Cell phone 4 % Radio 6 % TV 6 % Large supply of books 18 % Computer with Internet access 64 %
86. GLOBAL ADVERTISING SPEND Internet ad spending will account for 7.0 percent of global ad spend in 2008 Online advertising spend is expected to reach $23.9 billion in 2006 $28.6 billion in 2007 $32.5 billion in 2008 = an increase of 75% from the $18.5 billion in 2005 Sources: ZenithOptimedia report, ClickZ
89. ONLINE ADVERTISING SPEND Source: ZenithOptimedia report, Financial Times, 01/10/2006 Search engine marketing is believed to account for more than half of all Internet advertising spend.
96. Source: NMA Oct 2005, Brand Republic 2006 IT WORKS! Information now readily available to advertisers about online effectiveness
97. THE CONSUMER PROCESS Digital, unlike all other, channels offer a return path Brand awareness measuring the level of familiarity with the brand Message association measuring how messages are linked to brand Brand favourability see if respondents have positive opinions to brand Purchase consideration likelihood of consumer purchasing the brand Actual purchase
98. Online advertising spend INTEGRATED CAMPAIGNS WORK Brand awareness lift - TV: 17% - TV & online: 45% Source: Dynamic Logic Europe Online works well with other media
99. ADVERTISING EXPOSURE Additional ad exposure increases brand awareness Awareness is 2.5 X higher among those with 10 exposures versus those with 1 exposure Diminishing effectiveness after three exposures Exposure Frequency Point Change Effective Frequency For Brand Awareness Effective frequency
100. Branding effect Marketing spend Television Internet DIMINISHING RETURNS Synergy Pattern TV & Online
101. COST DRIVERS vs. ROI AWP % $/AWP % Ca. 20 % Internet TV COST/BENEFIT Source: MINDSHARE Using the Internet is the most cost-efficient way to create your first 20% awareness
103. Source: Dynamic Logic MarketNorms MarketNorms data through June 30, 2004; N=199 European campaigns, n=163,262 respondents Percent Online Ad Effectiveness, European Averages ONLINE BUILDS BRANDS +5.4% Which of the following [brands, products] have you heard of before?” Of those who had not seen the online ad, 68.9% were aware of the brand Of those who had seen the online ad, 72.6% were aware of the brand So, the ad caused a 5.4% increase in awareness
104. Percent Source: Dynamic Logic MarketNorms ONLINE BUILDS BRANDS Online Ad Effectiveness, European Averages +5.4% +45.3% +21.6% +5.6% +5.0%
105. IMPACT ON BRAND ATTRIBUTES % Lift Source: NFO/Infratest Study Both media impact key brand attributes separately yet are more powerful together
106. As a result of using the Internet 42% 74% 76% 42 77% Changed their mind about a brand they were going to buy and switched to a different brand Have personally researched and looked for information about a product or service before making a purchase Felt that the internet helps them make a more informed purchase decision Agreed that if they saw a negative review on the internet about a product or brand they would think twice about buying it Source: AOL Brand World Research 2005 PERCEPTION AND BEHAVIOUR Changing perceptions and behaviours through online
107. Source: IAB 2005 Lots of case studies, research and data showing that online advertising improves brand metrics such as awareness and favourability IT IS EFFECTIVE
108. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS There are several benefits to using digital and online marketing
109. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Measurable ROI
110. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Geographic, demographic and psychographic targeting
111. Source: 2004 AAF Survey of Industry Leaders on Advertising Trends THE BENEFITS Can massively increase effectiveness of traditional advertising
113. 10 – 15% Online advertising spend RECOMMENDED DIGITAL SPEND Optimal media mix includes 10 – 15% spend on digital
114. US: 6% UK: 7.8% Online advertising spend CURRENT DIGITAL MEDIA SPEND As a percentage of total advertising spend
115. Source: NMR, Top 20 advertiser’s spend in 2005 UK TOP 20 ADVERTISERS Total spend Internet spend % spent online % spend on all other media Top 20 advertisers 1,757,128,753 30,683,912 1.75 98.25 Unilever UK Ltd 217,374,235 467,782 0.22 99.78 Procter & Gamble Ltd 183,764,561 531,664 0.29 99.71 COI Communications 168,949,805 1,536,482 0.91 99.09 BSkyB Ltd 104,769,013 9,832,258 9.38 90.62 L'Oreal Golden Ltd 103,712,826 171,439 0.17 99.83 DFS Furniture 93,461,848 0 0.00 100.00 Masterfoods 79,091,280 381,082 0.48 99.52 Orange Plc 77,778,373 5,842,074 7.51 92.49 BT Ltd 76,469,097 1,494,089 1.95 98.05 Nestle 68,510,585 283,873 0.41 99.59 Reckitt Benckiser Ltd 67,473,880 10,324 0.02 99.98 Vauxhall Motors Ltd 63,460,028 497,881 0.78 99.22 Tescos Plc 62,885,215 197,954 0.31 99.69 Ford Motor Company Ltd 62,807,418 867,839 1.38 98.62 Renault Uk Ltd 60,126,322 709,243 1.18 98.82 Kellogg Company 58,840,448 0 0.00 100.00 Lloyds TSB Plc 56,139,386 161,677 0.29 99.71 Sainsbury's 52,925,167 80,653 0.15 99.85 Vodafone Ltd 50,572,728 300,328 0.59 99.41 Capital One 48,016,538 7,317,270 15.24 84.76
116. Source: NMR, Top 20 advertiser’s spend in 2005 UK TOP 20 ADVERTISERS Total spend Internet spend % spent online % spend on all other media Top 20 advertisers 1,757,128,753 30,683,912 1.75 98.25 Unilever UK Ltd 217,374,235 467,782 0.22 99.78 Procter & Gamble Ltd 183,764,561 531,664 0.29 99.71 COI Communications 168,949,805 1,536,482 0.91 99.09 BSkyB Ltd 104,769,013 9,832,258 9.38 90.62 L'Oreal Golden Ltd 103,712,826 171,439 0.17 99.83 DFS Furniture 93,461,848 0 0.00 100.00 Masterfoods 79,091,280 381,082 0.48 99.52 Orange Plc 77,778,373 5,842,074 7.51 92.49 BT Ltd 76,469,097 1,494,089 1.95 98.05 Nestle 68,510,585 283,873 0.41 99.59 Reckitt Benckiser Ltd 67,473,880 10,324 0.02 99.98 Vauxhall Motors Ltd 63,460,028 497,881 0.78 99.22 Tescos Plc 62,885,215 197,954 0.31 99.69 Ford Motor Company Ltd 62,807,418 867,839 1.38 98.62 Renault Uk Ltd 60,126,322 709,243 1.18 98.82 Kellogg Company 58,840,448 0 0.00 100.00 Lloyds TSB Plc 56,139,386 161,677 0.29 99.71 Sainsbury's 52,925,167 80,653 0.15 99.85 Vodafone Ltd 50,572,728 300,328 0.59 99.41 Capital One 48,016,538 7,317,270 15.24 84.76
117. Source: NMR, Top 20 advertisers’ spend in 2005 TOP 20 ADVERTISERS SPEND BY MEDIA UK data 2005 TV 50 % Radio 6 % Outdoor 9 % Newspaper 13 % Magazines 8 % Direct mail 9 % Cinema 3 % Internet 2 %
118. BUT There is ONE major problem afflicting traditional advertising…
128. GIVE THEM A PLATFORM Coke was initially slow to react Do you know what can be done with a bottle of Diet Coke and a handful of Mentos ? These guys do!
129. GIVE THEM A PLATFORM But has now wholeheartedly embraced the phenomenon
130. Instead of TELLING A STORY … Create the TOOLS to allow a story to be told
175. Traditional marketing view Traditional on- and off-line communication Traditional on- and off-line communication Below the line Above the line TTL TTL DIGITAL MARKETING BRAND DIGITAL MARKETING
176. Marketing View Below the line Above the line CRM Digital New on- and off-line communication New on- and off-line communication BRAND DIGITAL MARKETING The new marketing view
177. Identify ideal scenario Measure current position Determine waypoints Plan process DIGITAL STRATEGY
181. Where, why and how search visit info action Information requested Buy online (direct/retailer) Buy in store Information sent SEO PPC Sponsorship Partner Viral Advertising Etc. Campaign Product Service Brand Company INTEGRATION A simplified explanation of the process from usage to purchase
182. STRATEGY CONCEPT DESIGN PRODUCTION EXECUTION Channel independent Channel dependent THE DIGITAL PROCESS Similarities, differences and media agencies
183. What do the users really need? A process of identifying and matching the user’s particular needs to the company’s relevant products, services and online offerings This process shapes each user’s individual experience at the digital touchpoints USER NEEDS
185. To the point – and sole reason why! THE FUTURE › Everything that ’ s already in the world when you ’ re born is just normal. ‹ Douglas Adams, Author of The Hitchhiker's Guide to the Galaxy
186. We help brands connect with their audiences! We help brands establish trust! We help brands interact with their customers!
187.
188. Casper M ø ller CEO, T-Viral E: [email_address] T: +44 (0)20 7231 1320 42 Pump House Close London SE16 7HS United Kingdom I: www.t-viral.com