the digital & social marketing environment or how we lost the funnel! 2012
TRANSCRIPT
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The Digital & Social Marketing Environment
or
How we lost the funnel!
2012
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Objectives:
1) Discuss how digital and social communities are changing marketing
2) How to be competitive in the Digital and Social marketing environments
3) Using segmentation and personalization to improve consumer connection and relevance
4) The mobile explosion
5) How to be a digital expert
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FIRST:
UNDERSTAND HOW DIGITAL HAS CHANGED MARKETING & ADVERTISING
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Marketing was simpler before digital
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Wow..That’s Really Old
1979 - Apple II Introduced by Steve Job’s & Wosniack
1981 - IBM introduces it’s first PC
1983 - First Compaq “PORTABLE”
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The Old Approach to Marketing & Advertising
Marketing 1.0 was very linear and had well defined phases from brand awareness to loyalty.
Awareness&
Acquisition
Engagement &
ConversionConsumer Relationship
& Loyalty MarketingTheMarketing
FunnelTraditional Print, TV, PR and Radio Ads
FSCIs, Circulars, POS, Catalogs and Call Centers
Direct Mail, email, Frequent Shopper Cards
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Marketing33.3%
GP33.3%
COGS33.3%
% of Net Income
Traditional CPG Brand Economics
0%10%20%30%40%50%60%70%80%90%
100%
50%
10%
40%
PromotionPrint/RadioTV
Marketing investments and programs were simple and narrowly defined
% of Marketing Spend
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• Search (SEO/SEM)• Banner Ads• Email lists
• e-Commerce Sites• Microsites• Blogs • IM Bots
• Personalized DM• Desktop Widgets• Toolbars• Template-driven emails• Online Points Prgms
Web 1.0Advances in digital technology changed the way people interact with and experience a brand (late 1990’s – early 2000’s)
Awareness&
Acquisition
Engagement &
ConversionConsumer Relationship
& Loyalty Marketing
Digitally Enabled
“Top Down”Approach
Traditional Print, TV, PR and Radio Ads
FSCIs, Circulars, POS, Catalogs and Call Centers
Direct Mail, email, Frequent Shopper Cards
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Digital Marketing Tactics Have EvolvedVery rapid evolution from static “One Size Fits All” to dynamic digital marketing tools starting around 2002 (post the first dot bomb period)
Search • SEM keywords • Keyword Optimization• Attribution Models• Image search• Video in search
Web sites • Static web pages• Forums• News groups• html
• Dynamic Web pages• Web services• Rich Internet Applications• Apps/Online Tools
Email • Image-based static emails
• Template, decision rule driven dynamic emails
• Image rich/video embedded
Ad Banners • Flat static banner ads • Rich media ads• Real Time Bidding
Web 1.0 Web 2.0Tactics:
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Consumers are becoming hyper-connected to digital content and to one another
Community
Web 3.0: Social Communities are the New Major Marketing Channel
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Digital Marketing is a $40B Business
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(percentages may not total 100% because of rounding)
DecreaseIncrease Stay the same
Social media
Mobile
Online video
Game marketing
Static display ads
Direct mail
Radio
Outdoor
Magazines
Telemarketing
Yellow pages
Newspapers
86% 11% 4%
84% 13% 3%
83% 15% 2%
83% 13% 4%
78% 19% 3%
73% 17% 11%
62% 23% 15%
21% 37% 42%
18% 41%41%
16% 49% 35%
15% 59% 26%
11% 49% 40%
11% 37% 53%
8% 29% 64%
6% 33% 61%
Search engine marketing
Interactive display ads
Increasingeffectiveness
Decliningeffectiveness
Trad
ition
alIn
tera
ctive
Source: Forrester Research US Interactive Marketer Online Survey n=235 Marketers
Social Media and other interactive marketing channels are expected to show the greatest increase in marketing effectiveness over the next 3 years.
Market Dynamic
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SECOND:
CONSUMERS EXPECTATIONS in a DIGITAL & SOCIAL ENVIRONMENT
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• Is your program personalized for your audience based on their preferences?Personalized
• Does your program engage and add value to your audience?Engaging
• Are you leveraging digital technologies for real-time communications and connections with your brand? Real Time
• Do you allow your audience to participate in and contribute to marketing activities?Participatory
• Are you providing value and utility to your audience beyond your product attributes?Useful
5 Ways To Be Competitive within Digital Marketing
“Criteria For Success”
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PERSONALIZED, REAL TIME, TECHNOLOGY ENABLED, HELPFUL
Domino’s pizza shows you the real-time status of your pizza, from order to delivery
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HELPFUL, PERSONALIZED
IKEA helps you design the interior of your home
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PARTICIPATORY
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PARTICIPATORY
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www.shaveeverywhere.com became the #1 seller in Personal Grooming category on Amazon.com for the first two months after campaign launch.
ENTERTAINING?
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Goal: Help BOTH the Consumer (save money) and the Brand (make money)
PERSONALIZED, HELPFUL AND PROFITABLE!
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Engaging
Real Time
Participatory
Useful
Personalized
PERSONALIZED, REAL TIME, HELPFUL
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• Does your program align itself with a philanthropic purpose and invite your audience to give back to a larger cause?
Socially Conscious
• How are you using digital technologies to help service your audience needs?Helpful
• Does your program allow for interactions between your audience and their community?Social Interactions
• How does your marketing program influence the product development process?Product Development
• Your audience will pay for good content, are you providing it to them?Content
Today’s “social” consumers want to be part of communities that offer them content and connection with others.
5 Ways To Be Competitive in Social Marketing
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Starting Off…How do we Define Social Media?• Social Media is simply the collection of online platforms that enable people to
share opinions, insights, expressions and perspectives• Traditional “Audience” is one-way, “Conversation” is two-way and
“Community” is multi-way• Increasingly seeing brand–specific social sites and platforms
Podcasts
Social networks
Publishing platforms
Mobile Applications
Online chat and message boards
Content networks and distribution
Virtual platforms
Widgets
RSS
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SOCIALLY CONSCIOUS - Yoplait raised over $30 million for fight breast cancer
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Rapid, Relevant and Socially Conscious Marketing Within 48 hours of the Haiti earthquake the app was built and available
REAL TIME
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The Obama campaign generated a massive stream of motivating, engaging content that they successfully distributed across email and social media platforms; YouTube, Twitter and Facebook and their own websites
SOCIAL – CONTENT is KEY!
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PERSONALIZED, HELPFUL
R/GA’s Nike + - One of the most successful branded utilities brings together an online tool and a running device that tracks your running performance
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Rosetta 2009 Holiday Greeting Challenge: Snow Day
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Consumers DIGITAL & SOCIAL Interactions are spilling into the REAL WORLD
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Allows consumers to buy designs the same day as the show at Macy’s, H&M and Saks Fifth Avenue
NBC’s Fashion Star
REAL TIME, PRODUCT DEVELOPMENT
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Personalized
Engaging
Real Time
Participatory
Useful
?
REAL TIME, PRODUCT PERSONALIZATION TOOL www.mykleenextissue.com
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Third:
Using segmentation and personalization to improve consumer connection and relevance
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Segmentation – Types and Requirements
Consistency of Scalability (Ease Depth Defines drivers ofBehavior of Identification, of category usage &
Complexity in Segment Communication) Insights brand choice
Behavioral
Geo–Demographic
Attitudinal
Needs, Attitudes & Behaviors
The ultimate goal is the most stable and insightful segmentation that can be effectively scaled to full implementation
Low Very High High Low Low
Low Low High Low Low
Med Low Low Med Med
High High Med High High
Trading off complexity, scalability and effectiveness
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Develop detailed understanding of the target segments to drive better personalization
Objective
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Categorical variables are the most reliable stimuli for capturing respondent data via surveys.
However, the popularly used K-Means approach was originally developed for use with continuous variables (such as temperature, air pressure, weight) in parametric data sets.
8%
30%
7%11%
10%7%
27%
1 2 3 4 5 6 7
Segment μ 4.14appears to slightly agree
1234567
Completely Disagree
Completely Agree
Neutral
Actually more people disagree than agree
Traditional Clustering Algorithms Are Not Well-Suited for Marketing Data
Discrimination – K-Means wasn’t developed for marketing
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“I can’t wait to buy the next generation of smart phone”
Primary Target Primary Target Secondary Target Non-TargetNon-Target
68%
4%
31%
7%
26%
15%
5%
51%
13%
15%
Agree
Disagree
Agree
Disagree
26%
20%
12
27%
24%
5
Dimensions with good discrimination can yield deep, insights with strong differentiation across the segments.
Full SurveyPilot Survey(n=200) (n=1,600)
Discrimination – Bipolar responses makes for good targets!
% Top/Bottom 2 Box of 7
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% % % % % %Category Involvement/UsesI can't live without my cell phone 62% 67% 21% 19% 9% 18%
My cell phone makes me more productive 83% 65% 21% 18% 8% 24%
My cell phone helps me balancemy business and personal life 77% 67% 11% 14% 8% 16%
I use my cell phone to stay continually in touch with work 75% 22% 13% 7% 7% 14%
The only reason I own a cell phoneis for personal safety &security 16% 18% 26% 19% 57% 20%
Actionable – Wireless Category Involvement
% Top 2 Box out of 7
Segments exhibit major differences in Category Beliefs ….
UninvolvedGlove
CompartmentLong Distance
UsersData
CentricsSocializersEfficiency Optimizers
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Fourth:
Mobile and iPad applications that extend the reach of brand marketing and interactions
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The Mobile Explosion
Consumer mobile device penetration increased 10x in the last two
years -- Manhattan Research
2013The year when the number of mobile internet users is expected to surpass the number of desktop internet users. --"Internet Trends," Morgan Stanley.
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The Mobile Explosion
“The access revolution is over!
Mobile is changing us, changing our frame of reference so that we see information as
portable, personalized and participatory.” -- Susannah Fox, ePatients.net
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JuvédermTM Ultra • Mobile Application provides the same access/tools as website
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The JuvédermTM iPad app helps Doctors sell treatments in the exam room
JuvédermTM Consultation Tool
Personalized
Engaging
Real Time
Participatory
Useful
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DYNAMIC AND MEASURABLE SALES TOOLS
BMS leverages Cegedim Dendrite – whose SAAS platform now integrates a new Mobile Intelligence solution that fits it’s business processes while curbing costs.
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Other Personalized Examples: Mobile iPhone Application
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Fully interactive, real time mobile application
Click in Box to Play
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FIFTH:
BECOME A DIGITAL EXPERT
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INDUSTRYBLOGS
AGENCY BLOGS
TRENDS SITES
PODCASTS / VODCASTS
YOUTUBE / FACEBOOK
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RESOURCES
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CONFIDENTIAL
© 2007 Rosetta
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DILBERT BY SCOTT ADAMS
Final Thoughts?