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From DM to DigitalIn 11 Seconds( stimulating debate )

Simon JonesTim Newton

18th February 2009, Radisson SAS, Leeds

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We’re hear today to stimulate debate. We’ve got about half an hour presentation and open forum at the end.

You can pick this up at 11 seconds.co.uk later

And if you believe everything you read on tinterweb this is who you’d be seeing today…

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Internet – fact or fiction?

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2 different backgrounds

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Before we start…

Tim has 16 years Direct Marketing on agency and client side, ex DMA North council member

Simon has 17 years Digital Marketing, agency side and also spent 2 years with Freeserve

We’re coming from very different starting points to this debate

Let’s see where we end up in about ½ an hour or so…

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88.2%

Why 11 seconds?

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All presentations should start with a statistic don’t you think?

But then again, Comedian Vic Reeves once said 88.2% of statistics were made up on the spot, so why should you believe what we’re about to tell you?!

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Why 11 seconds?

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Why 11 seconds?

Here’s what you get if you look on YouTube for example…

If you’re an unnamed genius, solve a Rubik’s cube

If you’re a crazy American teenager, drink 1.5 litres of Coca Cola

The Koenigsegg CCX can travel ¼ of a mile

If you’re Lee Harvey Oswald, fire 3 bullets off!

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What can be done in 11 seconds?

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So what does this mean in offline terms?

In 11 seconds a potential customer can receive, open, read and decide whether to bin or keep your communication and act on it

So by the time I reach the next slide your audience will have decided whether that mail pack you lovingly spent blood, sweat, tears and, more importantly, money on, is for them or the bin

Depressing isn’t it?

Not as depressing as the fact that I could have drunk 1.5 litres of coke, or shot a US president three times in that time

But here’s a thing…

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11 seconds in Direct Marketing

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In the digital world, in the amount of time it takes to judge whether our offline mail pack is for me, I could have gone from search to click to browse to buy!

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11 seconds in Digital Marketing

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But here’s a problem…

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If we believe the marketing principles that we’ve only really got 2 seconds to actually make an impact, then it’s fairly obvious it’s dramatically reduced online.

Further more according to the IAB, if your site takes longer than 0.3 seconds to load (or at least start to load) then you’ve lost your audience.

Apparently more online sales are lost due to this than anything else.

Forget the relevance of your offer or the laser precision of your targeting.

The Koenigsegg’s not even had the key turned yet and the American kid hasn’t taken the top off the bottle!

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Targeting 40%

Offer or Proposition 40%

Creative 20%

The rules of engagement

Ed Meyer, CEO Gray

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According to the Institute of Direct Marketing, these statements are their definitions of direct marketing and digital marketing.

Which one is which? Does it matter?

Exactly!

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“The planned recording, analysis and tracking of customer behaviour to develop relational

marketing strategies”

-

“The practice of promoting products and services via mixed distribution channels to reach

consumers in a timely, relevant, personal and cost-effective manner.”

Theory & practice

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Theory & practice

“The purpose of direct marketing is to isolate your prospects & customers as individuals and build a continuing relationship to their greater benefit and your continuing profit.”

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..

‘Advertising issalesmanship in print’Claude Hopkins

Theory & practice

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The original internet started as far back as 1974 didn’t it?

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Today, Digital marketing is more about a two way communications process. Allowing the consumer to own the relationship more than ever before.

So what does it mean?

We must react to their online behaviour, to how they navigate our marketing messages, to what they implicitly tell us they want from us.

How many of the recommendations on Amazon for example are truly appropriate to you? How many of these products do you own or have bought elsewhere?

Is it really a 2 way communication channel?

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DM vs. Digital in the real world

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Social marketing is the zeitgeist buzzword of today.

Facebook for example gives you the power to share and makes your world more open and connected.

Brands have got to sit up and take notice.

Cadbury’s did.

Tens of thousands of Facebook members lobbied the confectionary giant to "bring back Wispa”

Are we the the only cynical ones here questioning who actually started this campaign?

The consumer has much more control over the relationship with the brand but to remain successful, the brand has to control the message. But can it really?

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Power of the consumer

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The message

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Together, the offline experience of a TV or press ad has prompted me to an online interaction which ultimately results in a free sample through my letterbox!

And I’ve asked for it too, you’ve sent me this with my permission!

Complete brand engagement through combination of digital and traditional.

I’ve seen the TV ad, heard the music, remembered the press ad, it’s got to be nivea.co.uk because of the power of the brand, and now I’ve sampled the product – even downloaded the song.

I trust this brand so much that I’m prepared to disclose my contact details, knowing that I’ll be marketed to.

I now own this brand and the relationship.

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DM vs. Digital combined

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We all know the media landscape is constantly changing and has changed more in the last 5 than the last 25 years

25 years ago we had 4 TV channels of which only two were commercial. Now how may do we have?

There are media channels and choices we don’t even know exist yet.

One of the big difference in the online world is we have multiple email addresses, more than one mobile number and multiple TVs in our homes.

We’ve only one letterbox and we’ve learned to treat it with respect – the same goes for any digital marketing.

If we’ve learnt anything from the past, it has to be relevance.

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Media delivery

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Social media

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Whilst Social media marketing gives you the relevance, its not the answer on its own.

Social media marketing allows you to make the choice yourself as the consumer.

We make the choices ourselves which in turn are ultimately relevant to us, our friends and peers.

Whilst marketeers worry that I’ll tell more people about my bad brand experience, I’m actually going to tell the same number about my positive brand experience

Maybe we should head the words of Modernista founder Gareth Koepke that “…we should see 'social' as a truth about people and communication, not a media channel”

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Measuring the effect of social media

Getting negative feedback on blogs and forums

The marketing team joined the forums and were open about who they were

Engaged with the detractors Turned around negative feedback Now regular use forums and blogs to

engage with an include customers in marketing activity and proposed product and services changes / enhancements

The direct affect being quelling of negativity and enhancing “caring” brand profile in digital space

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Measuring the effect of social media

Vodafone recently did the same One blogger made negative remarks

about his Blackberry and Vodafone heard about it by using Brand Watch

www.brandwatch.net Customer services immediately

commented on his blog, made amends and changed his perceptions from a negative brand hater to a positive Vodafone advocate

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What about measurement?

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The theory of online measurement We can measure everything in mind numbing detail We can measure/change things instantly Everything we do is highly accountable

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What about measurement?

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The practice of online measurement Too much data – analysis paralysis Cryptic, inconsistent metrics – technical and jargon heavy Seemingly infinite options to change

Return on Investment - underlying questions: Where do I invest my budget for maximum impact? How can I improve the performance of my site? How can I understand my customers better? Am I really making any more money?

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45 to 1 case study

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Here’s real measurement for us with one of our clients

He gets £45 return for every £1 spent with Google ad words

I don’t know of any financial advisors that can offer that return ratio do you?

Isn’t this what really matters to our clients?

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Why are we in marketing?

Online Marketing Spend

30%Sales up

30%

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So why are we in marketing then if not to make more money for our clients?

Spend less and make more?

Isn’t this what our clients expect from us?

We’re now working on models that reflect these expectations from clients like payment by results

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And that’s what gets results

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Isn’t this a case of it “aint what you do it’s the way that you do it?”

From our perspective, DM to Digital, and on to whatever is next, the relevance of understanding the basics still holds true.

It’s still about targeting, proposition and creative.

As Propaganda would say, knowledge before assumption. But its what you do with that knowledge in today’s digital world that gets results!

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Continue the debate at

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