DigiMarketing

Key Tenets of Digital Marketing

May 2008
From “Perpetual (Digital) Revolution”

Together, hardware and software will be the

catalyst for advances during the next 10 years
that will far exceed changes of the last 30 years.

Mr. Bill Gates, AWSJ, January 25, 2008

Tectonic Shifts
Traditional Media Digital Media
Traditional Media Digital Media
 Traditional Media Digital Media

TV IPTV
Radio Digital Radio
Billboards Digital POS
 Traditional Media Digital Media

US $455b US $55b
6% 23%
Source: IBM, “Navigating the Media Divide” Study
Traditional Media Digital Media

?
The Cross-Over Point
Why GM Gambled $1.5B On Digital

Over the next three years, General Motors will shift half
of its advertising budget to digital. Will that be enough to
get the automobile manufacturer in gear?

Michael Estrin is associate editor at iMediaConnection.

 Ongoing Confidence Gap

30%

25%

20%

15%
The Marketing Confidence Gap
10%

5%

0%
2003 2004 2005 2006 2007 2008 (E)
% Consumer Time Spent Online
% Advertising Dollars Spent Online

Source:Neo@Ogilvy
 digital
will
predominate
Traditional DigiMarketing
Marketing
01 From “New Media” to
the New Mass Media (of One)
 Worldwide Today

0.9 b PC users
1.3 b internet users
1.3 b landline phones
1.4 b credit cards
1.5 b email boxes (0.8b)
1.5 b TVs
1.8 b active sms users
3. 0b mobile phone subscribers

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore
New Media Barons
(cc) Lynette Webb, 2006
?
“Radio in My Head”
Yuan Shiao Nan
 Mass Media of One (Addressability)

- Unique address

- Individual user behavior

- Personal settings & preferences

- Two-way – individual direct response

- Contextual content

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore
02 From Targets to Participants
Marketing Algorithm of Reach/Frequency
Engagement Metrics & Planning
 From Mass to Personalization
03 (and the Privacy Paradox)
 Ease and Stress

Ease and Frequency Stress

 Access and Restriction

Unprecedented New Restrictions

Access
 Tim Berners-Lee, BBC Interview, March 18, 2008:

On personal data:
“It’s mine – you can’t have it. If you want to use it for
something, then you have to negotiate with me. I have to
agree. I have to understand what I’m getting in return.”
August 4, 2006:
AOL released search records of 650,000
users over a 3-month period, 20 m searches
August 7, 2006:
they removed the file from their site
August 9, 2006:
New York Times identified & interviewed #4417749
August 22, 2006:
AOL Chief Tech Officer & 2 others “left”
September 12 2007:
Why personalize?

80%
want it

Up to

58%
will pay
more attention
if they get it!
04 From Selling to Serving
05 From Impressions to New Connections
 QR Codes

Each one of these MOBICODES link to a specific mobile site.

Quick Response (QR) Code for North West Airlines
QR-Codes - MAGGI On-pack Communication

Inside Package

Outside Package
Outside Code to introduce MAGGI Recipe

1st week 2nd week 3rd week

New Connections

HKIA Program
06 From Old to New “Physics” of Marketing
 August 23, 2004

A MAJOR MEDIA REVOLUTION HAS JUST OCCURRED…

Consumers Spent More to Reach Media Than Marketers Spent to Reach

Them. For years, the consumer went along with a model of intrusion
perpetuated by the networks, advertisers and ad agencies…

The consumer has decided to take over…

Consumers are willing to pay for personalized information and entertainment

that fits their interests.
User Generated Content
Distribution Power Growing

You Tube: 58 Million monthly viewers*

 Leverage Impacted of Viral

• Seen by and
estimated 500MM

X people globally

• Equivalent value
of $150MM+ in
Viral video media
 12 DigiMarketing Shifts
From Traditional To DigiMarketing
1. Viewers………………………………………… Participants
2. Impressions……………………………………. Involvement
3. Broadcast Mindset……………………………. Addressable Mindset
4. Schedule-Driven………………………………. Time-shifted, Borderless
5. Marketer-Driven………………………………..Consumer-Initiated
6. Push Marketing…………………………………Opt-in and Share
7. Traditional Media Planning……………………New Media Planning
8. Managed PR……………………………………Digital Influence
9. Integrated Marketing…………………………..Unified Marketing
10. Data-Blind……………………………………….Data-Driven
11. Post-Campaign………………………………….Real-time
12. Partial ROI...…………………………………….Optimization
- End -