digital marketing overview 2014
DESCRIPTION
An overview of digital media and marketingTRANSCRIPT
Digital Marketing Overview2014
Agenda
1. Importance of digital media2. Engagement3. Influencers4. Social CRM and ORM5. Analytics and ROI6. Future Trends7. Industry
Is digital media important?
Digital Media – Brand Equity Perspective
Brand equity: A set of brand assets and liabilities linked to a brand name and
symbol, which add to or subtract from the value provided by a product or service
David Aaker
Brand Equity
Awareness
Advertising
WOM
Loyalty
Engagement
Community
Quality
Transparency
Association
Responsive
“Cares”
Earlier Consumer Decision journeyThe FunnelMarketers have long used the famous funnel metaphor to think about touch points: Consumers would start at the wide end of the funnel with many brands in mind and narrow them down to a final choice.
Consumers started with a large number of potential brands in mind and
After purchase, their relationship with the brand typically focused on the use of the product or service itself.
Source: Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places.
Fundamental changes in purchase• Consider & Buy: Marketers often
overemphasize the “consider” and “buy” stages of the journey, allocating more resources to building awareness
• Evaluate & Advocate: Marketing investments that help consumers navigate the evaluation process and then spread positive word of mouth about the brands they choose
• Bond: If consumers’ bond with a brand is strong enough, they repurchase it without cycling through the earlier decision-journey stages. Helps in building brand community
Source: Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places.
Global• 51% of brand word of mouth on
internet is due to TV advertising 1
– 19% of word of mouth is due to PR, events and brand news
• 24% decline in confidence on TV advertising2
• 18% increase in trust on Word of Mouth since 2007 for purchase
India• 77% of internet users refer to
online reviews before purchase3
– Second most trusted source after friends and family
• 21% decline in confidence on TV advertising for purchase
1Data2decision research 2013 http://www.warc.com/LatestNews/News/TV_advertising_is_vital_to_word_of_mouth.news?ID=311552Nielsen Trust in advertising (2012) http://www.nielsen.com/us/en/reports/2012/global-trust-in-advertising-and-brand-messages.html
3Nielsen India Release (April, 2012) http://www.fi.nielsen.com/site/documents/NielsenTrustinAdvertisingGlobalReportApril2012.pdf
Brand advocacy is an important driver of brand consideration and choice in the age of social web
Impact on Purchase Funnel
Importance of digital media• Consumers spend more time on digital
media• Influencers, Engage with loyalists
Brand Engagement
• Direct sales channel• Reduce lead costsSales
• Instant feedback• Reduce online negative word of mouthFeedback
• Better understand consumption patterns, brand perceptions in social contextResearch
• Build digital brand asset for brands such as communityBrand Community
Digital Media is now an important part of the communication mix
How should I run a digital campaign?
Brand Engagement• Touch Point• Since consumer spend more time on digital, it
becomes an important touch-point• Brand Recall• Aid brand recall
• Loyalty• Sharing• Brand activity is visible through social nature of
digital media• Engagement requires
• Research - Right understanding of audience• Targeting – Effective targeting through media planning tools• Execution – Creative that integrates desired brand positioning with
target audience understanding
Digital Campaign
Stage 1Setting Objectives
Stage 2Conceptualize
Stage 3Execute
Stage 4Measure
MetricsBrand AwarenessSalesShare of VoiceSentimentGrowth in communityEngagement
Factors1. Brand
personality2. Integration with
overall communication
3. Understanding Target Audience
Factors1. Decide Platforms2. Media Buying3. Engagement
tools4. Optimizing
media (CTR, CPM, CPC)
Factors1. Use of analytics
tools2. ROI – Sales,
Community membership, Engagement
Key success factors
Key factors
Aligned with brand personality
Target AudienceIntegrated
Why digital campaigns go wrong?
Not aligned with the overall brand positioningNot integrated with other communication such as TV, Print, Radio etc.Lack of understanding of the digital habits of the target audience
Which platforms are more important for a campaign?
Platforms
Source: Mahesh Murthy - RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
Important question to ask?
Is the platform aligned with my objectives?
Does it help build a brand community?
Is it helping create a digital asset?
Common Mistake
Chasing Facebook Fans!
• Typically less than 5% of your updates are shown to your fans
• You need a sponsored story to reach your own fans
• Every time you need to engage with Fans, you need to spend more!
Source: Mahesh Murthy - RoI in social marketing: some metrics. By Mahesh Murthy of Pinstorm
Is Facebook page a digital asset for a brand?
Why did this happen?
• Facebook is a Social Networking platform
• With more ads and brand updates, user loose
interest, which harms Facebook as a platform
• Facebook stock price was declining
• To boost revenues, stock price, brands were asked to
pay more to reach their own fans
• Facebook has launched new ad formats – In feeds, and video!
Pepsi vs. Coke during IPL 2013
IPL 2013 season
Pepsi’s share of voice was back to the same level after investing heavily in IPL 2013
Source: Pepsi vs. Coke study – Drizzlin Media
How important is the creative aspect?
Red Bull Stratos
The Consequence
Interbrand’s top 100 brands 2012 – Most of them have not spent too much on Media
Buying!
Strong digital campaigns should be a part of the overall Integrated Marketing
Communication
Example: Dove Real Beauty
4%
of women in the world consider themselves
beautiful.
Dove's real beauty story is almost 9 years old, which began with market research in 2004 that indicated that only 4% of women in the world consider themselves beautiful.
Dove’s campaign received more than 60 million visits
Is there any other way of engagement?
Information flow in a group depends on influencers
Importance of influencer engagement
Source: http://www.marketwired.com
Influencers• Followers
• An existing follower base• Credibility
• Credibility on a topic e.g. cooking, automobiles• Community
• Belong to a community (social and psychological) and have a strong influence
How to go about influencer engagement?
Identify Target
Audience
Identify influencers• Tools (Statsit)• Blog
Aggregators
Promote Influencer
engagement
Measure Engagement
Examples
How to manage angry consumers on social media?
Social CRMNot responding to angry consumers on social media on time has the potential to be a PR disaster!
• Consumer are powerful• Rants can go viral• Consumer can organize in groups
• It requires you to be• Proactive• Responsive• Sympathetic to problems• Engaging in follow-up
• Common metrics• First response Turn Around Time (TAT)• Resolution response TAT
Tools
How should I measure whether the activities on digital media have been successful or not?
ROI
Strategic Sales Equity Market Share
Share of Voice SentimentGrowth in trafficEngagementGrowth in Fans Growth in
followersTactical Click through rate Cost per click
ROI from a tactical to strategic continuum
Future Trends
Second Screen
Developing countries are driving global internet and mobile usage growth1
Country 2008-11 Additional Internet users (Mn) 2011 Internet Users (Mn) Y/Y Growth Population
penetrationChina 215 513 12% 0.38India 69 121 38% 0.1
Indonesia 37 55 22% 0.23Philippines 28 34 44% 0.35
U.S.A 15 245 1% 0.79
1KPCB 2012 Digital Trends http://kpcb.com/insights/2012-internet-trends2Internet and Mobile Association of India (IAMAI) and Indian Market Research Bureau (IMRB) http://www.informationweek.in/internet/13-03-14/77_percent_of_indian_users_use_mobile_for_social_media.aspx3 Canalys (2013) http://www.canalys.com/newsroom/developing-markets-will-drive-smart-phone-market-growth-2013
India Stats(2013) 2
74% of all internet users use social media62 million urban social media users82% penetration of social media in college students77% of Indian users use mobile for social media
Mobile Internet Usage 2 India (2013)
39.7 million active mobile internet user base32.5 million active social networking users18.2 million of active Mobile Internet users access social media
Smartphones (2013) 3
70-80% growth in smartphone sales in 2014 will be driven by BRIIC nations61.4% growth prediction in smartphone sales in India19% CAGR in BRIIC markets predicted between 2012-2016
Importance of multi-screen
Social TV
• Internet did not kill TV!
• Socially integrated viewing experience has assuaged the initial
fears of some professionals in the television industry who
wondered if social media would drastically reduce the amount of
time people might spend in front TV
• Social media is now recreating “group viewing” with people
talking about programs on spaces created by broadcasters
• This intersection of TV and social media has led to the emergence
of “Social TV”
• online social interactions that occur between viewers
while watching television
Social Media is helping TVCs
S.no: Attention span statistics1 Data
1 The average attention span in 2012 8 seconds
2 The average attention span in 2000 12 seconds
• Need to target engaged audience due to declining attention span of consumer
1Treadway, C., & Smith, M. (2010). Facebook marketing: An hour a day.Indianapolis, IN: Wiley2Motorola engagement research. Analysis of video consumption habits of 9,500 consumers across 17 markets globally http://mediacenter.motorola.com/Press-Releases/Mobile-Devices-and-DVRs-Shifting-Global-Media-Consumption-3c1d.aspx3 Harald Weinreich, Hartmut Obendorf, Eelco Herder, and Matthias Mayer: “Not Quite the Average: An Empirical Study of Web Use,” in the ACM Transactions on the Web, vol. 2, no. 1 (February 2008) (Sample: 59,573 page views)
• Growing popularity of social media has coincided with the decline of a consumer’s use of traditional media1.– Growth of social media is driving popularity of Television Commercials (TVCs).
• Spikes in online conversations around huge events like the Cricket matches, IPL, or the Oscars show how digital conversation is driving more people to tune in
• 43% people follow social media conversations about a TV program on a companion mobile device while watching the program2
Social Media users following conversations while watching TV (2013)2
Category Developing Countries Developed Countries
Passive listening 30% 17%
Active engagement 27% 10%
Examples: Super Bowl Super Bowl XLVII set a new All-Time Record in social TV with 30.6M social media
comments. Twitter accounted for 27.7M, public Facebook accounted for 2.8M
Sourceshttps://wordpress.bluefinlabs.com/blog/2013/02/04/super-bowl-up-150-in-social-tv-sets-new-all-time-record/http://mashable.com/2012/02/06/super-bowl-xlvi-social-tv-stats/
Sustainability
One of the biggest challenges in sustainability till now has been the unwillingness of consumers to pay more for goods that took care of the society.
A recent study by Nielsen that surveyed more than 29,000 global respondents found out that the percentage of people willing to reward companies that gave back to the society had increased to 50% in 2013 from 45% in 2011
The demographic willing to spend more is also the demographic that is more active on social media
Source: http://www.domainofhope.com/2013/08/companies-bill-and-csr-to-impact-indian.html
Impact on countries such as India
Companies Bill and CSR to impact Indian Social Media investments
Example: Unilever “Project Sunlight”
Project Sunlight campaign -- a sustainable lifestyle initiative.
Project Sunlight launched Brazil, India, Indonesia, the UK and the US, is encouraging parents to join what Unilever sees as a growing community of people who want to make the world a better place for children and future generations.
Impact: 11 million+ views
Sources:http://adage.com/article/the-viral-video-chart/unilever-s-project-sunlight-campaign-makes-viral-chart/245439/http://www.unilever.com/mediacentre/pressreleases/2013/Unileverlaunchesprojectsunlightanewinitiativetoinspiresustainableliving.aspx
How is the industry organized?
Industry
Digital Media
Creative
Ad
Tech
PR
Media buyin
g
Research
Digital media industry has• Pure creative agencies that
conceptualize and create digital campaigns
• Old ad and PR agencies who have extended their services to digital
• Technology companies that work on customized solutions such as websites, applications etc.• SEO, SEM
• Technology companies that provide analytics and intelligence
• Media buying companies and customized media owners• Includes SEM, Facebook, YouTube ads
Additional Reads
Adage Digitalhttp://adage.com/channel/digital/20
Branding in the Digital Age: You’re Spending Your Money in All the Wrong Places http://hbr.org/2010/12/branding-in-the-digital-age-youre-spending-your-money-in-all-the-wrong-places/ar/1
Redefining Advertising: How 2013 Transformed Digital Marketinghttp://www.google.co.in/think/infographics/redefining-advertising.html
RoI in social marketinghttp://www.slideshare.net/maheshmurthy/ro-i-in-social-marketing-some-metrics-by-mahesh-murthy-of-pinstorm