Digital Marketing

- The Future is Now!

Sao Paulo, May, 2007
Casper Mller, CEO Siu th in my Vit Long www.vietlongplaza.com.vn

INDEX
INDEX SLIDE INSERTED HERE!!! Introduction

What is Digital Marketing?

The Opportunity Why Use Digital Marketing? How Can You Use Digital Marketing? Digital Marketing Strategy

Siu th in my Vit Long www.vietlongplaza.com.vn

Introduction

HOW CAN YOU STAND OUT?

BRAND COMMUNICATION

Who can shout the loudest?

Noise!

This is what the consumers hear

Siu th in my Vit Long www.vietlongplaza.com.vn

HOW DO
PLAN ON STANDING OUT?

YOU

THE WORLD IS CHANGING

WHETHER WE LIKE IT OR NOT

If you dont like change, youre going to like irrelevance even less.
General Eric Shinseki, Former Chief of Staff, U.S. Army

CONFUSION
Female Fever
YOUNIVERSAL BRANDING

Diaspora Management NOUVEAU NICHE

Eco-ecosystem

Post-consumerism

HOME TROTTING

5*STAR*LIVING

Counter-Googling

Too many trends, and not a lot you can do about them

CHANGE

ITS NOT ABOUT TRENDS

CHANGE

ITS ABOUT

FUNDAMENTAL CHANGES

ELVIS HAS LEFT THE BUILDING

The marketing rule book has been torn up and thrown out the window

HYPERREALITY

The World, Dubai, United Arab Emirates

HYPERREALITY

Las Vegas

HYPERREALITY
Young people are scorning social interaction for virtual relationships.

Virtual, rather than real, communication

HYPERREALITY

MySpace has 120 million members

HYPERREALITY

A sample MySpace profile

FRAGMENTATION Proliferation of media and consumption choices has meant that the rulebook gets thrown out the window

FRAGMENTATION

In the UK alone there are more than 300 TV channels

FRAGMENTATION

Demographics are no longer enough

ONE SIZE NO LONGER FITS ALL

ONE SIZE NO LONGER FITS ALL

Product and media consumption proliferates

CONSUMER POWER

Consumers have got a VOICE and can make or break a brand

EXPERIENCE ECONOMY

Luxury consumption has shifted

THE OLD VALUE CHAIN

Resources

Goods/services

Solutions

THE NEW VALUE CHAIN

Resources Goods/services Solutions

EXPERIENCES

EXPERIENCES = KNOWLEDGE!

OPPOSITE-ISM

THE COMMUNICATION MODEL

STIMULI WHITE NOISE

ORGANISM ???

RESPONSE INDIFFERENCE

The old model is now officially dead!

TRADITIONAL COMMUNICATION

BRAND X

CUSTOMERS

Above the Line: One to many communication

AUTO-COMMUNICATION

Perceived, rather than real, customer feedback

DO YOU GET A RESPONSE?

BRAND

RESPONSE CUSTOMERS

+
COMMUNICATION

or
APATHY

Do your customers care about what you try to tell.. and SELL?

EVOLVED COMMUNICATION

BRAND X

THE CUSTOMER

One-to-one communication: a TRUE dialogue. BTL at its best.

THE NEW MARKETING PARADIGM

CUSTOMERS

CUSTOMERS

The power of digital channels

BRANDS ARE NO LONGER IN CONTROL

ITS MORE IMPORTANT THAN EVER

To know your customers To know how to communicate WITH your customers To deliver what THEY want when they want it

ARE THESE PEOPLE YOUR CUSTOMERS?

 OR ARE THESE YOUR CUSTOMERS?

CLARITY

From auto communication

CLARITY

To true INTERACTION, CUSTOMER DIALOGUE & PURCHASES

BRAVE NEW WORLD

Are you ready for it?

What is Digital Marketing?

TECHNOLOGY IS CHANGING

Email on the move

TECHNOLOGY IS CHANGING

UMPC Ultra-mobile PC. Laptop power in the size of a PDA

TECHNOLOGY IS CHANGING

Get content anywhere

TECHNOLOGY IS CHANGING

View content anywhere

TECHNOLOGY IS CHANGING

The Media Center PC the new heart of the home?

TECHNOLOGY IS CHANGING

Watch your TV away from home

CONTENT VS. MEDIA

Not necessarily all life-changing

DIGITAL CHANNELS
VIDEO E-MAIL

BLOGS

GAMES

WEB SITES BANNERS

DIGITAL CHANNELS
INSTANT MESSAGING SEM

PODCASTS

MOBILE PHONES VIRAL ELEMENTS

Some examples of digital channels

WEB

Sell products and services online

WEB

Increase brand awareness

WEB

Build your own car and DRIVE it!

WEB

Online origami from BMW

WEB EXCITING AD FORMATS

MTV Starzine Creative Showcase winner, September 2005

Source: IAB 2006

Rich media, video banners, tenancies, micro sites, sponsorships, email

WEB - SEM
User makes a search

A company presents itself in the search engine

Contact

Search Engine Optimisation

WEB - ADVERTAINMENT

Increase brand awareness

WEB - ADVERTAINMENT

WEB - ADVERTAINMENT

and drive conversions

WEB - ADVERTAINMENT

Even serious companies can do advertainment and viral marketing

BLOGS

Social media marketing spend is becoming big business

PODCASTS

Users actively choose to engage with social media

EMAIL

Product focused email

VIRAL MARKETING

Viral videos

VIRAL MARKETING

Viral videos

INSTANT MESSAGING

Channel extension and engagement

DESKTOP APPLICATIONS

Useful tools for the user to have on their desktops

DESKTOP APPLICATIONS

And a great way to increase brand awareness

DING $ $ $
Estimated cost to build:
$80,000

Confirmed revenues:

$20 million +

INTERACTIVE POSTERS

What looks like an ordinary street poster

INTERACTIVE POSTERS

Allows you to interact and download your own ring tone

INTERACTIVE POSTERS

Or how about printing your own?

INTERACTIVE MIRRORS

HOLOGRAPHIC PROJECTIONS

Just about any product can be re-produced in a 3D hologram

The Opportunity

THE NUMBERS
More than 1 billion Internet users in the world 250 million have broadband
Source: eMarketer, May 2006

Global, extensive reach

UPTAKE HAS BEEN FAST

Broadband users are far more active online, spending twice as long online as narrowband users and viewing 3.5 times as many web pages *

58% 50% 45% 41.3% 38% 31% 28% 23% 19% 10% 13.5% 15.6% 47% 51% 53% 54%

60%

62%

6%

8%

Dec 1995

Jun 1996

Dec 1996

Jun 1987

Dec 1997

Jun 1998

Dec 1998

Jun 1999

Dec 1999

Jun 2000

Dec 2000

Jun 2001

Dec 2001

Jun 2002

Dec 2002

Jun 2003

Dec 2003

Jun 2004

Dec 2004

Jun 2005

Source: IAB 2005

62% of UK population is now online & 71% are using broadband

TURKEY
In Turkey: 16 million Internet users
Source: CIA World Factbook, 2005

2.5 million broadband users 1.72 end of 2005

Source: wi-fitechnology.com & Quantum-Web

It is currently a relatively small market

TURKEY
In 2015: 24 million broadband users in Turkey

CAGR: 31%!
Source: Quantum-Web

But one that is growing fast!!

TURKEY
Phones: 20 million fixed lines in Turkey 48.7 million mobile phone users
Source: Turkcell, Telecommunications Authority, 2006

MEDIA CONSUMPTION

26% of peoples media time is spent online on an average weekday

Source: BMRB Internet Monitor 2005

CHANGING MEDIA CONSUMPTION

Q: If you had to live on a deserted island and could take only one of the following with you, which would you take?

Newspaper subscription Cell phone Radio TV Large supply of books Computer with Internet access

1% 4% 6% 6% 18 % 64 %

INTERNET

Base = 1,000 online households Source: Ipsos U.S. Express, August 2004

Consumers cant live without the Internet

MEDIA CONSUMPTION

Have these changes had an impact on advertising?

GLOBAL ADVERTISING SPEND

Internet ad spending will account for 7.0 percent of global ad spend in 2008
Online advertising spend is expected to reach
$23.9 billion in 2006 $28.6 billion in 2007 $32.5 billion in 2008 = an increase of 75% from the $18.5 billion in 2005
Sources: ZenithOptimedia report, ClickZ

ONLINE ADVERTISING

So where does this money go?

EMERGING MARKETING TECHNIQUES

Source: CMO Magazine, April 2005

ONLINE ADVERTISING SPEND

Search engine marketing is believed to account for more than half of all Internet advertising spend.
Source: ZenithOptimedia report, Financial Times, 01/10/2006

ONLINE ADVERTISING

Who is spending it?

GLOBAL ADVERTISING SPEND

Biggest sectors in online ad spend
Financial services $1.6 billion

Telecommunications Retailers
Automobile

$1.5 billion $1.3 billion

$ 700 million
Source: ZenithOptimedia report, MediaPost

2005

Why Use Digital Marketing?

WHY USE DIGITAL MARKETING?

Catch the next wave before it catches you

WHY?

BECAUSE IT WORKS!

IT WORKS!

Source: NMA Oct 2005, Brand Republic 2006

Information now readily available to advertisers about online effectiveness

THE CONSUMER PROCESS

Brand awareness
measuring the level of familiarity with the brand

Message association
measuring how messages are linked to brand

Brand favourability
see if respondents have positive opinions to brand

Purchase consideration
likelihood of consumer purchasing the brand

Actual purchase

Digital, unlike all other, channels offer a return path

Online advertising spend WORK INTEGRATED CAMPAIGNS

Brand awareness lift - TV: 17% - TV & online: 45%
Source: Dynamic Logic Europe

Online works well with other media

ADVERTISING EXPOSURE
Effective Frequency For Brand Awareness
8 6.7 6

5.1

Point Change

4 3.4 2.9

3.9

Additional ad exposure increases brand awareness Awareness is 2.5 X higher among those with 10 exposures versus those with 1 exposure Diminishing effectiveness after three exposures

0 1 2 3 4 to 9 10 +

Exposure Frequency

Effective frequency

DIMINISHING RETURNS

Internet

Television

Marketing spend

Synergy Pattern TV & Online

COST/BENEFIT
COST DRIVERS vs. ROI
$/AWP %
Internet

TV

Ca. 20 %

AWP %

Source: MINDSHARE

Using the Internet is the most cost-efficient way to create your first 20% awareness

COST/BENEFIT

Driving low cost awareness

ONLINE BUILDS BRANDS

100

+5.4%
68.9 72.6

Control Exposed

80

Which of the following [brands, products] have you heard of before? Of those who had not seen the online ad, 68.9% were aware of the brand Of those who had seen the online ad, 72.6% were aware of the brand So, the ad caused a 5.4% increase in awareness

60

Percent

40

20

Brand Awareness

Ad Recall

Message Association

Brand Favourability

Purchase Intent

Source: Dynamic Logic MarketNorms MarketNorms data through June 30, 2004; N=199 European campaigns, n=163,262 respondents

Online Ad Effectiveness, European Averages

ONLINE BUILDS BRANDS

100

+5.4%
80
68.9 72.6

Control Exposed

+5.6%
60

Percent
40

+45.3%
34 23.4

+21.6%
33.2 27.3

44.6

47.1

+5.0%
38.3 40.2

20

Brand Awareness

Ad Recall

Message Association

Brand Favourability

Purchase Intent

Source: Dynamic Logic MarketNorms

Online Ad Effectiveness, European Averages

IMPACT ON BRAND ATTRIBUTES

% Lift
35 30 25 20 15 10 5 0 Unique Innovative Modern Trendy Likeable

TV only

Online only

TV + Online
Source: NFO/Infratest Study

Both media impact key brand attributes separately yet are more powerful together

PERCEPTION AND BEHAVIOUR

As a result of using the Internet
Changed their mind about a brand they were going to buy and switched to a different brand Have personally researched and looked for information about a product or service before making a purchase Felt that the internet helps them make a more informed purchase decision Agreed that if they saw a negative review on the internet about a product or brand they would think twice about buying it

42% 74%

76%
77% 42

Source: AOL Brand World Research 2005

Changing perceptions and behaviours through online

IT IS EFFECTIVE

Source: IAB 2005

Lots of case studies, research and data showing that online advertising improves brand metrics such as awareness and favourability

THE BENEFITS

Source: 2004 AAF Survey of Industry Leaders on Advertising Trends

There are several benefits to using digital and online marketing

THE BENEFITS

Source: 2004 AAF Survey of Industry Leaders on Advertising Trends

Measurable ROI

THE BENEFITS

Source: 2004 AAF Survey of Industry Leaders on Advertising Trends

Geographic, demographic and psychographic targeting

THE BENEFITS

Source: 2004 AAF Survey of Industry Leaders on Advertising Trends

Can massively increase effectiveness of traditional advertising

KEY LESSON

Integrated campaigns offer more bang for the buck!

Online advertising spend SPEND RECOMMENDED DIGITAL

10 15%
Optimal media mix includes 10 15% spend on digital

Online advertising spend SPEND CURRENT DIGITAL MEDIA

US: 6%
UK: 7.8%
As a percentage of total advertising spend

UK TOP 20 ADVERTISERS
Total spend Top 20 advertisers Unilever UK Ltd Procter & Gamble Ltd COI Communications 1,757,128,753 217,374,235 183,764,561 168,949,805 Internet spend 30,683,912 467,782 531,664 1,536,482 % spent online 1.75 0.22 0.29 0.91 % spend on all other media 98.25 99.78 99.71 99.09

BSkyB Ltd
L'Oreal Golden Ltd DFS Furniture Masterfoods Orange Plc BT Ltd Nestle Reckitt Benckiser Ltd Vauxhall Motors Ltd Tescos Plc Ford Motor Company Ltd Renault Uk Ltd Kellogg Company Lloyds TSB Plc Sainsbury's Vodafone Ltd Capital One

104,769,013
103,712,826 93,461,848 79,091,280 77,778,373 76,469,097 68,510,585 67,473,880 63,460,028 62,885,215 62,807,418 60,126,322 58,840,448 56,139,386 52,925,167 50,572,728 48,016,538

9,832,258
171,439 0 381,082 5,842,074 1,494,089 283,873 10,324 497,881 197,954 867,839 709,243 0 161,677 80,653 300,328 7,317,270

9.38
0.17 0.00 0.48 7.51 1.95 0.41 0.02 0.78 0.31 1.38 1.18 0.00 0.29 0.15 0.59 15.24

90.62
99.83 100.00 99.52 92.49 98.05 99.59 99.98 99.22 99.69 98.62 98.82 100.00 99.71 99.85 99.41 84.76

Source: NMR, Top 20 advertisers spend in 2005

UK TOP 20 ADVERTISERS
Total spend Top 20 advertisers Unilever UK Ltd Procter & Gamble Ltd COI Communications BSkyB Ltd L'Oreal Golden Ltd DFS Furniture Masterfoods Orange Plc 1,757,128,753 217,374,235 183,764,561 168,949,805 104,769,013 103,712,826 93,461,848 79,091,280 77,778,373 Internet spend 30,683,912 467,782 531,664 1,536,482 9,832,258 171,439 0 381,082 5,842,074 % spent online 1.75 0.22 0.29 0.91 9.38 0.17 0.00 0.48 7.51 % spend on all other media 98.25 99.78 99.71 99.09 90.62 99.83 100.00 99.52 92.49

BT Ltd
Nestle

76,469,097
68,510,585

1,494,089
283,873

1.95
0.41

98.05
99.59

Reckitt Benckiser Ltd

Vauxhall Motors Ltd Tescos Plc Ford Motor Company Ltd Renault Uk Ltd Kellogg Company Lloyds TSB Plc Sainsbury's Vodafone Ltd Capital One

67,473,880
63,460,028 62,885,215 62,807,418 60,126,322 58,840,448 56,139,386 52,925,167 50,572,728 48,016,538

10,324
497,881 197,954 867,839 709,243 0 161,677 80,653 300,328 7,317,270

0.02
0.78 0.31 1.38 1.18 0.00 0.29 0.15 0.59 15.24

99.98
99.22 99.69 98.62 98.82 100.00 99.71 99.85 99.41 84.76

Source: NMR, Top 20 advertisers spend in 2005

TOP 20 ADVERTISERS SPEND BY MEDIA

TV Radio Outdoor Newspaper Magazines Direct mail Cinema Internet

50 % 6% 9% 13 % 8% 9% 3% 2%

Source: NMR, Top 20 advertisers spend in 2005

UK data 2005

BUT
There is ONE major problem afflicting traditional advertising

Falling marginal advertising EFFECTIVENESS!

IN THE GOOD OLD DAYS

It was all about selling an image

IN THE GOOD OLD DAYS

Then it all became about telling a story

IN THE GOOD OLD DAYS

Then it all became about telling a story

Online advertising spend

THESE DAYS

CONSUMERS ARE TIRED OF LISTENING!

 Unless your story is very compelling to them or it has been promoted by a trusted third party consumer

INSTEAD OF TELLING YOUR STORY

LET CONSUMERS TELL THEIRS!

GIVE THEM A PLATFORM

Do you know what can be done with a bottle of Diet Coke and a handful of Mentos?

These guys do!

Coke was initially slow to react

GIVE THEM A PLATFORM

But has now wholeheartedly embraced the phenomenon

Instead of

TELLING A STORY Create the TOOLS to allow a story to be told

THE NAME OF THE GAME

CO-CREATION

CONSUMERS Are not just about CONSUMPTION Its as much about PARTICIPATION

THE PARTICIPATION ARENA

Weve all heard about

Generation X
Generation Y
And then came

Now it is all about

GENERATION C

GENERATION C(ONTENT)

Self-broadcast

GENERATION C(ONTENT)

Self-publish

GENERATION C(ONTENT)

Self-publish

Generation C changes the rules of consumption

CURATED CONSUMPTION

Bill

CURATED CONSUMPTION

Josh

CURATED CONSUMPTION

And Josh II

DANGERS DANGERS

BIG AD
Great reach shame about the target market

How Can You Use Digital Marketing?

WHAT IT IS USED FOR? DANGERS

Branding Acquisition / Lead Generation Direct Response / Promotions CRM

CORPORATE TOUCHPOINTS

Allowing companies to communicate with stakeholders 24/7

CORPORATE TOUCHPOINTS

Allowing companies to communicate with stakeholders 24/7

PUBLIC SERVICES

Allowing governments to communicate with citizens 24/7

CROSS-MEDIA INTEGRATION

Anders & Henriette financial services webisode

CONTENT EXTENSION

Big Brother in Second Life

PRODUCT DEVELOPMENT

Integrated clothing and technology

NEW PRODUCT DEVELOPMENT PRODUCT DEVELOPMENT

PRODUCT DEVELOPMENT

PRODUCT DEVELOPMENT

What will they think of next, eh?

EXAMPLE

BRITISH AIRWAYS

British Airways web site

BRITISH AIRWAYS

Executive Club

BRITISH AIRWAYS

Executive Club

BRITISH AIRWAYS

On Business the business loyalty programme

BRITISH AIRWAYS

E-mail newsletters

BRITISH AIRWAYS

Banner advertising

BRITISH AIRWAYS

Content sponsorships

BRITISH AIRWAYS

B2B advertainment

EXAMPLE

NIKE FOOTBALL

NIKE FOOTBALL

Web sites and viral videos

NIKE FOOTBALL

Branded games

NIKE FOOTBALL

Instant messaging applications

NIKE ID

Customise and buy your own football boots

EXAMPLE

EXAMPLE

Digital Marketing Strategy

APPLYING THE KNOWLEDGE

Vision
New business concepts New products, services, experiences

Marketing, advertising, PR

THE STRENGTHS
Branding
Acquisition/Direct Response Dynamic/Interactive

Measurable/Accountable

THE PROCESS

DIGITAL MARKETING
Traditional on- and off-line communication Above the line

TTL

BRAND

TTL

DIGITAL MARKETING

Below the line Traditional on- and off-line communication

Traditional marketing view

DIGITAL MARKETING
Marketing View
New on- and off-line communication

Above the line

CRM

BRAND

Digital

Below the line

New on- and off-line communication

The new marketing view

DIGITAL STRATEGY
Identify ideal scenario Measure current position Determine waypoints Plan process

STRATEGIC DIRECTION

The shortest way is not always the right way

STRATEGIC CHOICES

You may find your strategy changes along the way

STRATEGIC PROCESS

Constant goal setting, project planning and alignment

INTEGRATION
Where, why and how
Information sent

Information requested

search
SEO PPC

visit
Sponsorship Partner Viral Advertising Etc.

info
Campaign Product Service Brand Company

action

Buy online (direct/retailer) Buy in store

A simplified explanation of the process from usage to purchase

THE DIGITAL PROCESS

STRATEGY

CONCEPT
DESIGN PRODUCTION EXECUTION

Channel independent

Channel dependent

Similarities, differences and media agencies

USER NEEDS
What do the users really need?
A process of identifying and matching the users particular needs to the companys relevant products, services and online offerings This process shapes each users individual experience at the digital touchpoints

THE PAST

Quaint and ineffective

THE FUTURE

Everything thats already in the world when youre born is just normal.
Douglas Adams, Author of The Hitchhiker's Guide to the Galaxy

To the point and sole reason why!

We help brands connect with their audiences! We help brands establish trust! We help brands interact with their customers!

Casper Mller CEO, T-Viral E: casper.moller@t-viral.com T: +44 (0)20 7231 1320 42 Pump House Close

London SE16 7HS

United Kingdom I: www.t-viral.com