Digital Advertising Opportunities & Overview

June 2011

Overview

• Digital Media Model– Paid Media– Social Media– Owned Media

• Digital Trends

2

Earned media “the result”

Paid media“the catalyst”

Owned media

“the portable brand”

The Digital Media Model – Not “New Media”

3

PAID MEDIADigital Media Model

4

Generic Online Ad SpendingSearch

Portals

Top Publishers

NetworksSocial Media,

Widgets, Mobile, Virtual Worlds

SpecialtyWebsites

5

Pricing

CPM – cost per thousand impressions– 100,000 impressions @ $10 CPM = $1,000

CPC – cost per click– 200 clicks @ $5 CPC = $1,000

CPL – cost per lead– 25 leads @ $40 CPL = $1,000

CPA – cost per acquisition– 10 sales @ $100 CPA = $1,000

Branding

DirectResponse

HighQuality

Low Quality

6

Paid Search

• Ads that appear contextually via search queries on the main search engines

• Pay per click (PPC) –historically efficient use of media dollars

7

Text Display

• Contextual Facebook / YouTube text ads / LinkedIn

• Contextual mobile app ads

• Best-performing non-”paid search” media

8

Display Media

• Static and rich-media banner ads

• Direct Response + Branding

• Banners work best within the context of a display + paid search campaign

9

Online Video

• Video Pre-Roll yields a significant CTR– Editing of pre-existing video

content– Animation using display

display assets

• :15 and :30 spots can run in front of YouTube, Hulu and other video heavy sites (i.e. CNN.com, ABC.com, etc.)

10

Offline Digital• Digital Out-of-Home

– Display creative (banners) would be leveraged across DOOH platforms

• Digital Billboards• Digital Display

– Coffee shops, supermarket check-outs, gas stations

• In-store Video Advertising– In-Store, Closed-Circuit

Television (Walmart TV, Home Depot)

11

Email Drops

• Publisher Email Drops

• Email re-contact for up-selling program benefits (re-targeting)

12

Offline/Online Integration

• Incorporate interactive into traditional “offline” media– Integrate “Text for more info” call to action

• Radio– Traffic updates

– Events

13

EARNED MEDIADigital Media Model

14

Social Media

15

Social Media• Social media will

further integrate with multiple types of organizations:– Increased customer

service– Tightly target

audiences based on social media activity

– Help users interact more with the brand and its offerings

16

Online Influencer Outreach• Reach out to influential individuals who are more likely to write / talk

about brands

• Online – Influential bloggers / twitters / podcasters

• Offline/Online – Posters sent to offline influencers with online interactive (text for more info)– Free clinics, churches, employment agencies, green organizations, etc.

17

Search Engine Optimization• Improving the volume and quality of traffic to a Web

site from search engines via "organic" search results for targeted keywords

• The higher a Web site ranks, the greater the chance that it will be visited by users

18

OWNED MEDIADigital Media Model

19

Websites

• Principal home of brand messaging– The Website is the principal piece of customer

interaction architecture• As important as physical architecture

– Users will quickly assess their opinions of brands based upon their interaction with the Website

20

Social Media (again)• Large number of users &

pageviews• Lots of information about

users• Customizable pages - apps• Privacy concerns• Drive users between social

media pages and multiple online properties

• Further extend the brand’s look and feel

21

Mobile• SMS• MMS• Screensavers• Ringbacks• RFID• Location-based services• Geocaching• iPhones, Androids and

Tablets (oh my)

22

Interactive Tools

23

Metrics – New & Improved

• What matters most?– Interaction or Engagement?– Engagement or Enchantment?– Enchantment or Enjoyment?– Interaction with customers

• Beyond the click– New metrics allow us to ore accurately and

thoroughly how customers are interacting with ads and social media through advanced tools.

24

DIGITAL TRENDSDigital Overview

25

Futurecast• Technological leaps occur at increasingly smaller

intervals .– Moore’s Law predicts that technology “doubles”

every 18-24 months.

• This exponential doubling will drive emerging technologies forward until at least 2015 (and possibly beyond).

• Customers’ experiences with utilities will carry across multiple channels as users continue to interact among themselves in shaping a utility’s image and reputation.

• Utilities will find themselves blindsided by the technological advances as policy requirements mandate increased monitoring of and interaction with energy use.

26

Tablets• Top 10 tablets for 2011:

– #1: iPad remains on top. The factors that keep it on top include it’s usability, battery life, massive catalog of apps, and the price.

– #2—HP TouchPad– #3—The Amazon Tablet– #? – Motorola Xoom

27

Cloud Computing• Cloud computing is an increasingly broad

topic that encompasses everything from:– Google Apps to data center services– virtualization to software– infrastructure- and platform-as-a service.

• Nevertheless, cloud adoption remains in the single digits amid security concerns.

• Key players include: – IBM, HP, Google, Microsoft, Amazon Web

Services, Salesforce.com, NetSuite, VMware as well as dozens of others.

28

Popular Apps• Popular Apps

– Foursquare and other Location-based services (LBS)

– Dropbox—upload photos & video in bulk, import files from Mail, Word and other apps, and chose folders to save them to.

– Angry Birds/Tiny Wings—game with different levels, objective is to get rid of pigs by shooting different birds at them.

– Fahrenheit—Weather and Temperature on your Home Screen. displays the current temperature as an icon badge.

– Words with Friends

29

RFIDs

• RFID technology will allow people to use their mobile phones to quickly pay for small transactions by swiping their phone near a payment base

30

New Realities

• Smartphone omnipresence

• End of mass reach vehicles

• Marketing = content

• Death of “digital” – digital is everywhere

31

Constant Change = New Opportunities

• User preference for online video

• Data visualization

• Interactive TV

• Tablets changing user behavior

• New ad units

• Constant Facebook changes

32