Foundations of Web 2.0 Marketing

Let’s Revisit:

What is traditional Marketing all about? What is different about Web 2.0

Marketing?

21ST Century Marketing Challenges

FRAGMENTATION!!AttentionDemand

Attention Economy

Fragmented media and channelsConsumers tuning out or completely

skipping messages 61% of consumers say that marketers and advertisers do

not treat them with respect 69% are interested in products or services that would help

them skip or block advertising

Poor Information/Metrics on effectiveness

Fragmentation makes…

reaching keeping the attention of your customer

ever harder.

As a clever marketer, ask yourself:

What am I asking consumers really when I build a community?

…when I ask for consumer production? …when I ask for participation of any

kind?

Long Tail (Chris Anderson)

Niches are Riches

What is “Natural Demand”?

The “Head” of the Demand Curve:Pre-Internet, old economy firms turned out a

small number of “hits” or blockbuster products

The “Tail” of the Demand Curve: Internet-era, new economy firms offer a

broader range of niche products.

The Head

Prior to the Internet, production, distribution, and consumption focused on a few hits because of scarcity of resources: there simply was not enough time, space, or money

for businesses to offer everything for everybody. The 80/20 rule was the dominant model—20

percent of a business’s products accounted for 80 percent of its sales (and usually 100 percent of its profits).

The Long Tail

In markets where technology dramatically reduces the costs of reaching niches through one or more of these powerful forces: democratizing the tools of production greatly

expands the universe of content democratizing distribution greatly reduces the costs

of consumption connecting supply and demand by lowering search

costs of finding niche content drives demand down the tail.

Is there a Long Tail? www.rogerebert.com hosts more than ten

thousand reviews and its Web traffic statistics show that even the most popular film represents less than 1 percent of their business. In June 15, 2006, "The Da Vinci Code" and

"Brokeback Mountain" were tied at 0.8 % of page views

the next most requested reviews in 2006 have been for "V for Vendetta" (0.7)

"X-Men: The Last Stand" (0.6) "An Inconvenient Truth" (0.5).

The lesson: People are curious about a lot of different movies."

Is there a Long Tail?

The Long Tail of Holiday Music. eMusic has 1,226 holiday albums in the

catalog1,128 have been downloaded over the past

month. That's 92% of the catalog!

Source: Digital Audio Insider

To Summarize:

In virtually all markets, there are far more niche goods than hits

The cost of reaching those niches is now falling dramatically.

The demand curve flattens. There are still hits and niches, but the hits are

relatively less popular and the niches relatively more so.

All the niches add up. Although none sell in huge numbers, there are so many niche products that collectively they can comprise a market rivaling the hits.

The natural shape of demand is revealed. That shape is far less hit-driven than we have been led to believe.

21ST Century Marketing Challenges

Twitter, ‘nough said…

Moment of Honesty

Do we really have a definition of Web 2.0?

If I were to do one this is probably it: “Maybe it is a ‘new’ Internet and if it is, it is more

about concepts than definition. In my view, it centers around:

freedom of expression horizontal innovation enabling openness, connectivity, and exchange of

information (most importantly?) respect of individuals as contributors

Group Exercise

What do you consider Japanese Airline’s most pressing online marketing challenge today?

What do you consider Matrix and Crew BOS Ltd’s most significant online marketing challenge in the (near to medium) future?

Take a page from the Youtube-revolution and develop one specific campaign for one specific objective.

Of Influentials and Search Engines

BloggersPodcastersVideobloggersSneezers

DiggTechnoratidel.icio.us FlickrGoogle

Interruption

Does Customer Interruption still work?

Web 2.0 Communication shows two things:

Consumers love to interrupt!Consumers love to talk!

Changes your Relationship

From ‘selling to customers’ to ‘hosting guests’

From ‘controller’ of communication (teller of stories) to ‘enabler’ of communication (resource for stories told by others).

Digital Communication Map

Consumer

Marketer

Marketer Consumer

Digital Communication Map

Consumer

Marketer Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing

Marketer Consumer

Digital Communication Map

Consumer Social searchThird party and retailer evaluation sites (e.g. epinions.com)BlogsWikisSocial networking sites

Marketer Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing

Marketer Consumer

Digital Communication Map

Consumer Social searchThird party and retailer evaluation sites (e.g. epinions.com)BlogsWikisSocial networking sites

Marketer Link buildingNews releasesBlogs/Online forums

Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing

Marketer Consumer

Digital Communication Map

Consumer Search EmailCompany-owned product evaluation sites (beta)Blogs/ Online forumsFeedback sites

Social searchThird party and retailer evaluation sites (e.g. epinions.com)BlogsWikisSocial networking sites

Marketer Link buildingNews releasesBlogs/Online forums

Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing

Marketer Consumer

In your Groups:

Work together to fill the quadrants for the company assigned. Describe digital

communication strategy?

Analyze S&Ws What should it do?

Consumer

Marketer

Marketer Consumer

Nike, SunLife Insurance, Starbucks

Let’s share…

Lunch someone?