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Idea Agency

Advertising isn’t what it used to be


N ew tec h n o lo gie s,
fragmente d m e d ia , a nd a ne w
ow e r e d c o ns u m ers
generation of emp
are rapidly c ha ng ing th e w o rld
of advertising...
We’re Spending Less Time Here...

Radio TV Print
-19% -33% -30%

Time spent with traditional media is declining

Arbitron Research: Internet and Multimedia Study


...And More Time Here.
New technologies are captivating consumers
Social Media
Social Media is the new Mass Media

200 million
200

150
120 million
millions

98 million
100

50
32 million

3.6 million
0
MySpace Facebook Super Bowl American Idol People Magazine
Media fragmentation
is increasing.

In 1971, the average


person encountered
approximately

500
ad messages a day

David Schenk, Marketing Smog


8

Today,
that number
is almost

5,000
making it harder to
engage consumers.

David Schenk, Marketing Smog


v e rt is in g
n li n e A d
O ve be en fla t w ith
a te s ha ars.”
“CPM R
ults for th e pas t 2 ye
linin g re s w .01%
dec through rates no
rage click
Ave

Online Promotion
spe s
nding expected to
triple over the
next 5 years surpa
ssing all other
online advertising c
Borell Associa
ategories.
te
s: The Big Shif
t Research Re
port (April 20
08)
Digital Consumers
are shifting from passive shoppers to active brand participants

200 million 36 million


US consumers have shopped online Download music or video*
Over 875 million worldwide***

user

40 million
110 million mobile
Browse the web from
their mobile phone**
Participate in customer
Social Networks*

PASSIVE

95 million
Participate in community producer 50 million
online Contests Have created online content*
& Sweepstakes****
participant

*Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
30.0
2008 2012

22.5
($ in Billions)

15.0

7.5

0
Promotions Email Search Video Display

Online Promotions
Spending expected to surpass other online advertising
categories over the next 5 years.

Source: Borell Associates inc. 2008


Because promotions deliver results...

60% 80% 82%


of US consumers of online of consumers
have purchased consumers have will provide personal
a brand due to a entered a information in exchange
promotion.* sweepstakes.** for a chance to win.***

*IMI International **eMarketer ***Jupiter Research: Online Privacy Report


The New Marketing Mix
Advertising + Digital Promotions

Quadrant 4 = most value


Increased Value

Increased Value
High
Promotions + Advertising
4 Increased relevance & entertainment
By combining digital promotions &
2 4 advertising both relevance &
entertainment value is increased
moving closer to Quadrant 4.
>
> Relevant

Television Advertising
3 Low Relevance - High Entertainment

1 3 2 Internet Advertising
High Relevance - Low Entertainment

Mass Marketing
1
Low
Low Relevance - Low Entertainment
Low > Entertaining > High

Relevance & Entertainment


2 axis that create consumer value in marketing:
While all marketing is capable of playing in quadrant
four, no single medium has broken through.

Source: Joseph Jaffe


Old Marketing New Marketing

Spray & Pray Attract & Engage

Large Audience Smaller Audiences

Low Relevance High Relevance

Low Return High Return


Promotions 2.0
Marketers are using digital promotions today
to create buzz & cut through the clutter
Digital Promotions
From Brand Awareness to Engagement
High Consumer Involvement

>
UGC

Instant win

Brand Engagement
Brand Awareness

Advergames
Social

> >

Mobile

Sweepstakes

Core Audience

Extended Audience
>

Low Consumer Involvement


70%
of CPG Super Bowl Advertisers
used interactive promotions at the core of their 2008 campaigns.

Source: Promo Magazine


User Generated Contests
deep brand engagement & active participation

Doritos changes the game


Contest winner beats out madison avenue
winning USA TODAY'S 2009 Super Bowl Ad Meter
Advergames
brand messages become viral brand experiences

30% of Super Bowl viewers say they are more likely to visit an
advertiser's Web site after seeing a Super Bowl commercial*
*2009, Harris Interactive Poll
Advergames
brand messages become viral brand experiences

40

30

20

10

0
Advergames Video Tell-a-Friend
Advergames/ Online Viral Social
Tell-a-friend
Microsites Contests Video Bookmarking

Viral Marketing Tactics with “Greatest Results”*

* 2008 eMarketer, Viral Marketing Survey


Mobile Integration
participation anytime or anywhere

Largest US SMS Promotion New technologies driving innovation

97% of consumers carry their phone at retail*


Inclusive Experiences
Everyone wins something. Someone wins everything.

One person win a trip to the World Series One college wins a private concert
Everyone wins a taco if base with the Dave Matthews Band
is stolen during the game Everyone watches online
Social Promotions
promotions worth talking about

78% of consumers
trust consumer recommendations over advertising

Nielsen “Trust in Advertising Study” 2007


Promotion Hell
Poor planning can lead to big problems
Warning!
Promotions are regulated & must comply with federal and
state laws to avoid civil & criminal penalties.
Axl Rose vs. Dr. Pepper
Everyone in America gets a Dr. Pepper (sort of)

No Artist Approval + No Rules + Technical Problems = Pending Lawsuit


Rock the Vote
Starbucks and Krispy Kreme face penalties for election day giveaways

Federal Statute prohibits any organization from


“providing rewards for voting.”
Promotions 3.0
What’s next for advertising & promotions?
Clutter Continues
Brands will look for new ways to engage consumers
as media & product proliferation expands

M
Mobile Dominates
Mobile & Wireless devices will become the next
dominant consumer platform

65 Million U.S. Mobile Internet users in 2008 and growing*


* Promotion Marketing Association Digital Summit
Social Media is all Media
Social Media is bigger than you think... and it’s just getting started

80% of Millennials use social networking sites.

Millennials will outnumber Boomers and Gen X by 2010.


* New York Times

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