The Digital & Social Marketing Environment

or

How we lost the funnel!

2012

Objectives:

1) Discuss how digital and social communities are changing marketing

2) How to be competitive in the Digital and Social marketing environments

3) Using segmentation and personalization to improve consumer connection and relevance

4) The mobile explosion

5) How to be a digital expert

FIRST:

UNDERSTAND HOW DIGITAL HAS CHANGED MARKETING & ADVERTISING

Marketing was simpler before digital

Wow..That’s Really Old

1979 - Apple II Introduced by Steve Job’s & Wosniack

1981 - IBM introduces it’s first PC

1983 - First Compaq “PORTABLE”

The Old Approach to Marketing & Advertising

Marketing 1.0 was very linear and had well defined phases from brand awareness to loyalty.

Awareness&

Acquisition

Engagement &

ConversionConsumer Relationship

& Loyalty MarketingTheMarketing

FunnelTraditional Print, TV, PR and Radio Ads

FSCIs, Circulars, POS, Catalogs and Call Centers

Direct Mail, email, Frequent Shopper Cards

Marketing33.3%

GP33.3%

COGS33.3%

% of Net Income

Traditional CPG Brand Economics

0%10%20%30%40%50%60%70%80%90%

100%

50%

10%

40%

PromotionPrint/RadioTV

Marketing investments and programs were simple and narrowly defined

% of Marketing Spend

• Search (SEO/SEM)• Banner Ads• Email lists

• e-Commerce Sites• Microsites• Blogs • IM Bots

• Personalized DM• Desktop Widgets• Toolbars• Template-driven emails• Online Points Prgms

Web 1.0Advances in digital technology changed the way people interact with and experience a brand (late 1990’s – early 2000’s)

Awareness&

Acquisition

Engagement &

ConversionConsumer Relationship

& Loyalty Marketing

Digitally Enabled

“Top Down”Approach

Traditional Print, TV, PR and Radio Ads

FSCIs, Circulars, POS, Catalogs and Call Centers

Direct Mail, email, Frequent Shopper Cards

Digital Marketing Tactics Have EvolvedVery rapid evolution from static “One Size Fits All” to dynamic digital marketing tools starting around 2002 (post the first dot bomb period)

Search • SEM keywords • Keyword Optimization• Attribution Models• Image search• Video in search

Web sites • Static web pages• Forums• News groups• html

• Dynamic Web pages• Web services• Rich Internet Applications• Apps/Online Tools

Email • Image-based static emails

• Template, decision rule driven dynamic emails

• Image rich/video embedded

Ad Banners • Flat static banner ads • Rich media ads• Real Time Bidding

Web 1.0 Web 2.0Tactics:

Consumers are becoming hyper-connected to digital content and to one another

Community

Web 3.0: Social Communities are the New Major Marketing Channel

Digital Marketing is a $40B Business

(percentages may not total 100% because of rounding)

DecreaseIncrease Stay the same

Social media

Mobile

Online video

Game marketing

Email

Static display ads

Direct mail

Radio

Outdoor

Magazines

Telemarketing

Yellow pages

Newspapers

86% 11% 4%

84% 13% 3%

83% 15% 2%

83% 13% 4%

78% 19% 3%

73% 17% 11%

62% 23% 15%

21% 37% 42%

18% 41%41%

16% 49% 35%

15% 59% 26%

11% 49% 40%

11% 37% 53%

8% 29% 64%

6% 33% 61%

Search engine marketing

Interactive display ads

Increasingeffectiveness

Decliningeffectiveness

Trad

ition

alIn

tera

ctive

Source: Forrester Research US Interactive Marketer Online Survey n=235 Marketers

Social Media and other interactive marketing channels are expected to show the greatest increase in marketing effectiveness over the next 3 years.

Market Dynamic

SECOND:

CONSUMERS EXPECTATIONS in a DIGITAL & SOCIAL ENVIRONMENT

• Is your program personalized for your audience based on their preferences?Personalized

• Does your program engage and add value to your audience?Engaging

• Are you leveraging digital technologies for real-time communications and connections with your brand? Real Time

• Do you allow your audience to participate in and contribute to marketing activities?Participatory

• Are you providing value and utility to your audience beyond your product attributes?Useful

5 Ways To Be Competitive within Digital Marketing

“Criteria For Success”

PERSONALIZED, REAL TIME, TECHNOLOGY ENABLED, HELPFUL

Domino’s pizza shows you the real-time status of your pizza, from order to delivery

HELPFUL, PERSONALIZED

IKEA helps you design the interior of your home

PARTICIPATORY

PARTICIPATORY

REAL TIME, ENGAGING

www.shaveeverywhere.com became the #1 seller in Personal Grooming category on Amazon.com for the first two months after campaign launch.

ENTERTAINING?

Goal: Help BOTH the Consumer (save money) and the Brand (make money)

PERSONALIZED, HELPFUL AND PROFITABLE!

Engaging

Real Time

Participatory

Useful

Personalized

PERSONALIZED, REAL TIME, HELPFUL

• Does your program align itself with a philanthropic purpose and invite your audience to give back to a larger cause?

Socially Conscious

• How are you using digital technologies to help service your audience needs?Helpful

• Does your program allow for interactions between your audience and their community?Social Interactions

• How does your marketing program influence the product development process?Product Development

• Your audience will pay for good content, are you providing it to them?Content

Today’s “social” consumers want to be part of communities that offer them content and connection with others.

5 Ways To Be Competitive in Social Marketing

Starting Off…How do we Define Social Media?• Social Media is simply the collection of online platforms that enable people to

share opinions, insights, expressions and perspectives• Traditional “Audience” is one-way, “Conversation” is two-way and

“Community” is multi-way• Increasingly seeing brand–specific social sites and platforms

Podcasts

Social networks

Publishing platforms

Mobile Applications

Online chat and message boards

Content networks and distribution

Virtual platforms

Widgets

RSS

SOCIALLY CONSCIOUS - Yoplait raised over $30 million for fight breast cancer

Rapid, Relevant and Socially Conscious Marketing Within 48 hours of the Haiti earthquake the app was built and available

REAL TIME

The Obama campaign generated a massive stream of motivating, engaging content that they successfully distributed across email and social media platforms; YouTube, Twitter and Facebook and their own websites

SOCIAL – CONTENT is KEY!

PERSONALIZED, HELPFUL

R/GA’s Nike + - One of the most successful branded utilities brings together an online tool and a running device that tracks your running performance

Rosetta 2009 Holiday Greeting Challenge: Snow Day

Consumers DIGITAL & SOCIAL Interactions are spilling into the REAL WORLD

Allows consumers to buy designs the same day as the show at Macy’s, H&M and Saks Fifth Avenue

NBC’s Fashion Star

REAL TIME, PRODUCT DEVELOPMENT

Personalized

Engaging

Real Time

Participatory

Useful

?

REAL TIME, PRODUCT PERSONALIZATION TOOL www.mykleenextissue.com

Third:

Using segmentation and personalization to improve consumer connection and relevance

Segmentation – Types and Requirements

Consistency of Scalability (Ease Depth Defines drivers ofBehavior of Identification, of category usage &

Complexity in Segment Communication) Insights brand choice

Behavioral

Geo–Demographic

Attitudinal

Needs, Attitudes & Behaviors

The ultimate goal is the most stable and insightful segmentation that can be effectively scaled to full implementation

Low Very High High Low Low

Low Low High Low Low

Med Low Low Med Med

High High Med High High

Trading off complexity, scalability and effectiveness

Develop detailed understanding of the target segments to drive better personalization

Objective

Categorical variables are the most reliable stimuli for capturing respondent data via surveys.

However, the popularly used K-Means approach was originally developed for use with continuous variables (such as temperature, air pressure, weight) in parametric data sets.

8%

30%

7%11%

10%7%

27%

1 2 3 4 5 6 7

Segment μ 4.14appears to slightly agree

1234567

Completely Disagree

Completely Agree

Neutral

Actually more people disagree than agree

Traditional Clustering Algorithms Are Not Well-Suited for Marketing Data

Discrimination – K-Means wasn’t developed for marketing

“I can’t wait to buy the next generation of smart phone”

Primary Target Primary Target Secondary Target Non-TargetNon-Target

68%

4%

31%

7%

26%

15%

5%

51%

13%

15%

Agree

Disagree

Agree

Disagree

26%

20%

12

27%

24%

5

Dimensions with good discrimination can yield deep, insights with strong differentiation across the segments.

Full SurveyPilot Survey(n=200) (n=1,600)

Discrimination – Bipolar responses makes for good targets!

% Top/Bottom 2 Box of 7

% % % % % %Category Involvement/UsesI can't live without my cell phone 62% 67% 21% 19% 9% 18%

My cell phone makes me more productive 83% 65% 21% 18% 8% 24%

My cell phone helps me balancemy business and personal life 77% 67% 11% 14% 8% 16%

I use my cell phone to stay continually in touch with work 75% 22% 13% 7% 7% 14%

The only reason I own a cell phoneis for personal safety &security 16% 18% 26% 19% 57% 20%

Actionable – Wireless Category Involvement

% Top 2 Box out of 7

Segments exhibit major differences in Category Beliefs ….

UninvolvedGlove

CompartmentLong Distance

UsersData

CentricsSocializersEfficiency Optimizers

Fourth:

Mobile and iPad applications that extend the reach of brand marketing and interactions

The Mobile Explosion

Consumer mobile device penetration increased 10x in the last two

years -- Manhattan Research

2013The year when the number of mobile internet users is expected to surpass the number of desktop internet users.  --"Internet Trends," Morgan Stanley.

The Mobile Explosion

“The access revolution is over!

Mobile is changing us, changing our frame of reference so that we see information as

portable, personalized and participatory.” -- Susannah Fox, ePatients.net

JuvédermTM Ultra • Mobile Application provides the same access/tools as website

The JuvédermTM iPad app helps Doctors sell treatments in the exam room

JuvédermTM Consultation Tool

Personalized

Engaging

Real Time

Participatory

Useful

DYNAMIC AND MEASURABLE SALES TOOLS

BMS leverages Cegedim Dendrite – whose SAAS platform now integrates a new Mobile Intelligence solution that fits it’s business processes while curbing costs.

Other Personalized Examples: Mobile iPhone Application

Fully interactive, real time mobile application

Click in Box to Play

FIFTH:

BECOME A DIGITAL EXPERT

INDUSTRYBLOGS

AGENCY BLOGS

TRENDS SITES

PODCASTS / VODCASTS

YOUTUBE / FACEBOOK

50

RESOURCES

CONFIDENTIAL

© 2007 Rosetta

51

DILBERT BY SCOTT ADAMS

Final Thoughts?