The Future Of Digital Marketing, Search & Social Marketing

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Digital Marketing

The Future

of

Wolter Tjeenk Willink



INTRODUCTION



Wolter Tjeenk Willink, founder of Traffic Builders B.V.

Full service search engine marketing agency– Search engine advertising (SEA)

– Search engine optimization (SEO)

– Conversion optimization (web analytics, usability)

Outsourcing services

Consultancy / Training

Detaching / Aiding inhouse SEM teams

WHAT WE DO...



TODAY’S AGENDA



IN THIS PRESENTATION…

Marketing challenges

Today’s statement

Online marketing trends, facts & figures

Integrated online marketing strategies for B2C and B2B– Social media marketing

– Search marketing

Key take aways



Some of the challenges in marketing we face today:

Selecting the right media channels/marketing instruments

Making optimal use of those marketing instruments

Integrating channels for synergy and consistency

Tracking accountability of your marketing spendings

Dealing with short-term ROI focused management

Budgetting

MARKETING CHALLENGES



Marketers and management should focus on a long-term,

integrated/holistic online marketing approach instead of a

short-term, direct response driven ROI calculation.

STATEMENT FOR TODAY



ONLINE MARKETING FACTS & FIGURES



Internet is the second largest medium

Gaming outranks reading the newspaper in age 20-50

INTERNET VERSUS OTHER MEDIA

Source: SPOT, June’08



Time spend online has doubled in just 2 years!

INTERNET VERSUS OTHER MEDIA

Source: SPOT, June’08Age group 20 to 65 years



Approx. 11 million internet users in NL

90% of those use broadband (cable/DSL)

INTERNET USAGE BY CONNECTION

Source: CBS



Increased use of laptops: 44% in 2007

Increased use of mobile devices: 21% in 2007

INTERNET USAGE BY DEVICE

Source: CBS



95% of the users communicate online through chat,

forums, e-mail, etc.

INTERNET USAGE BY ACTIVITY

Source: CBS



95% uses search engines regularly

Over 30% of internet users use Social Media

INTERNET USAGE BY ACTIVITY (2)

Source: CBS



In 2007, approx. 70% of all users bought online, of which

60% within a period of 12 months

USE OF ONLINE SHOPPING

Source: CBS



Travel, software/hardware and clothing remain popular

TYPE OF PURCHASE BY CATEGORY

Source: CBS



Online sales expected to reach 4.8 billion euro

ONLINE SPENDINGS

Source: Thuiswinkel.org



30% of Dutch internet users use social media:

Chat sites, like MSN

Forums, like Tros Radar or Vara’s Kassa (popular Dutch consumer forums)

Social network sites, like LinkedIn and Hyves

Bookmark sites like , Reddit, NuJij and eKudos.nl

Blogs varying from “Marco’s recipe site” to

RSS distributors like Feedburner

Mini-Blog applications like Twitter

RISE OF SOCIAL MEDIA



Your target audience expects you to “socialize” (1):

60% of US internet users use social media

93% of those users expect companies to have social

media presence

85% believes companies must interact using social media

56% feel a stronger connection and better served

WHY ENGAGE IN SOCIAL MEDIA

Source: Cone Business 2008



Your target audience expects you to “socialize” (2):

43% believes companies should use social networks to

solve consumer problems

41% feels companies should solicit feedback on their

products and services: enabling co-creation

37% wants companies innovate in brand interaction online

25% even says companies should market to consumers

WHY ENGAGE IN SOCIAL MEDIA?

Source: Cone Business 2008



Social media in The Netherlands 2008

SOCIAL MEDIA USAGE IN NL

Source: Ruigrok | Netpanel 2008



The majority of your target audience is online,

searching for information,

interacting with your brand,

through multiple channels like search and social media,

buying your products and services online,

or offline...

But how do we respond in terms of marketing?

TEMPORARY FINDINGS



We’re shifting budget from outdoor and print to online

MEDIA BUDGET ALLOCATION 2008

Source: IAB



Whilst internet consumes 28% of our media attention...

...online marketing is still at a 19,1% budget share(?)

MEDIA BUDGET ALLOCATION 2008

Source: IAB



50% was spent on Search (9.6% of overall budget)

25% was spent on display advertising (4,8% of overall)

ONLINE MEDIA BUDGET ALLOCATION

Source: IAB



We are shifting more budget to online.

We are following the crowd, thus:– We have to share the same inventory with more

advertisers while the user attention span gets shorter...

– ...and online marketing gets more expensive

We are still pushing instead of pulling or interacting

New online marketing methods are adopted slowly

Let’s look at some example cases

TEMPORARY FINDINGS



EXAMPLE CASE 1: THE LONG TAILT

ota

l s

ea

rch

vo

lum

e

Number of unique search phrases

Low

High

High

High number of competitors and direct conversions per search phrase at high costs per conversion

The Long Tail in search engine marketing

Low number of competitors and direct conversions per search phrase, but high long-term ROI contribution and low cost per conversion



EXAMPLE CASE 1: THE LONG TAIL

Motivation

Longevity of buying motive

Occasional

Life style

Permanent needOccasional needTemporary need

Life Stage

“Mortgage quote”

“Buying a house”

“Having a baby”

“Carp fishing tips”

“Bicycle routes”



We should also be here(branding, long-term)

EXAMPLE CASE 1: THE LONG TAIL

Motivation

Longevity of buying motive

Occasional

Life style

Permanent needOccasional needTemporary need

Life Stage

We are here(transactional,

short-term)



EXAMPLE CASE 2: TRACKING ROI

Offline sales & cross-media

Track effect of Search on offlineconversions, ROI contribution within online cross-media strategies, etc.

Branding & Customer Lifetime Value

Track online/offline cross-media contributionto branding and ROI

Online direct response / ROI

Track views, clicks, CTR%,whitepaper downloads, onlinesales, etc.

Direct reponse within the sameuser session or max. 30-day period.

Online advertisers




comScore study 2007Direct response in Search Engine Marketing accounts for just 17% of total sales!

Also:30% of all internet users delete1st and 3rd party cookies regularly!




comScore study 2007Calculating real conversion worth per euro based on attribution of Latent sales, Cookie deletion correction and offline sales.

Tracked conversion worth

Real conversion worth



INTEGRATED ONLINE MARKETING STRATEGIES



Long term (2 – 5 years)

Mobile marketing for ROI

Behavioral targeting (still a bridge too far for most of us)

Do use Mobile Search for branding purposes and keeping

up with mobile use in your branch.

RECOMMENDATIONS



Short term (1 – 2 years)

Invest in inhouse knowledge of Search and other online

marketing channels that are vital for you

Create a separate online marketing department or job

Create a multi-disciplinary task force consisting of IT,

online, offline, PR and management. Get them involved;

make them part of the process.

RECOMMENDATIONS



Short term (1 – 2 years)

Seriously invest in web analytics: increase conversion %

Split marketing budget into ROI-driven and Branding

ROI-driven budget should be flexible if possible– Take into account Latent ROI, Cookie deletion, Offline i/a

Invest in content-based marketing, especially in B2B– Share knowledge, not just information

Invest in social media in 2009: be out there

RECOMMENDATIONS



Need for an long-term, integrated/holistic approach to:

Search– Organic

– Paid

Social media marketing

Affiliate marketing

Display advertising

And offline marketing

ONLINE STRATEGIES FOR 2009



Understand where search engines are moving into:

Personalized search experience

Social search

Universal search

Contextual brand mentioning

Other trends include:

Mobile search

Automated text translation

Voice based search / voice to text

SEO STRATEGIES FOR 2009



Personalized search

User preferred content ranks higher

Behavioral targeting of search results


Step 1 Step 2 Step 3



Social search

Social bookmark sites gain importance

How does this affect your website, knowing:

Sites sharing knowledge will gain popularity over sites

with information?

Sites that offer brand experience will gain popularity over

product sites?




Universal search

Search results now include: blogs, video, RSS feeds,

podcasts, images, books, shopping, maps, scholar, etc.

How does this affect your website, knowing:

Your site probably has little non-product/service related

content?

And it’s probably not likely that fresh content will be added any

time soon?




Contextual brand mentioning will influence organic rankings

Google is able to track where and in which context your brand

or company name is mentioned

Google also knows yourdomain.com is the most relevant for

“YourCompanyName”

1 + 1 = 3. How does this affect your company, knowing:

Your PR department does not take into account blogs, portals

and other online authorities in your branch? Let alone SEO?

Nobody bothers to “socialize” online, responding to blogs




Due to Google’s improved Quality Score invest in:

Broadening your search phrases (in numbers)

Make use of different keyword match types like [exact]

Optimize your landing page:

to improve textual relevance

to decrease bounce rates

and ultimately increase conversion rates

SEA STRATEGIES FOR 2009



Think of Google’s network when considering branding

Improved content network for contextual ads– Reasearch indicates a 50% rise in brand

awareness/association

Largest network of site owners/publishers in The

Netherlands for low-cost, high-impact display advertising,

video advertising, etc.

Exposure on YouTube

SEA STRATEGIES FOR 2009



Social media examples to help you get started

Business to business:– Actively engage in blogs or start your own, publish articles

and have users ‘Digg’ them or add your RSS feed, publish video content

– Basically: share your knowledge, interact, pull, don’t push

Financial:– Start a blog to answer consumer questions, enable user

ratings for assurance agencies (coming soon), etc.

SOCIAL MEDIA MARKETING



Social media ideas to get you started

Travel:– Have users rate accommodations, write reviews,

recommend activities nearby, share their holiday pictures, give them the opportunity to send an holiday eCard with their own photo, etc.

– Provide an environment to enforce and prolong the holiday experience.

Consumer Electronics:– My personal favorite: Will it Blend? The iPhone edition




Social media ideas to get you started: Will it Blend?

http://www.youtube.com/v/qg1ckCkm8YI&hl=nl&fs=1


• Viral video• 6 million views within a week on YouTube• Over 13.000 ‘votes’ • Almost 6000 comments• Sales increased by 500 percent



Get management involved and informed, continuously

Split online marketing budget into a flexible Direct

response budget and a Branding budget

Improve (cross-media) web analytics / ROI calculations

Optimize landing pages and goal conversion funnels

Gain inhouse knowledge of important online media

Be patient: there’s more than direct response

Now get out there and socialize!

CONCLUSIONS



END



Wolter Tjeenk Willink Mark Tijssen

Managing Director Sales Consultant

Traffic Builders B.V.

Schoutstraat 63

1315 EW Almere, NL

Tel. +31(0)36 53 742 41

More about search engine marketing: www.traffic-builders.com

HOW TO CONTACT US?

The Future Of Digital Marketing, Search & Social Marketing

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