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!!
 Attention
 Demand
Attention Economy
Fragmented media and channels
 Consumers 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
catalog
 1,128 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
Bloggers
Digg
Podcasters
Technorati
Videobloggers
del.icio.us
Sneezers
Flickr
Google
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
Retail
sites
Banner Ads/Links
Email/Spam
News Releases
Blogs/Online forums
Search Engine Optimization
Viral/social marketing
Marketer
Marketer
Consumer
Digital Communication Map
Consumer
Social
search
Third party and retailer evaluation sites
(e.g. epinions.com)
Blogs
Wikis
Social networking sites
Marketer
Retail
Marketer
sites
Banner Ads/Links
Email/Spam
News Releases
Blogs/Online forums
Search Engine Optimization
Viral/social marketing
Consumer
Digital Communication Map
Social
search
Third party and retailer evaluation sites
(e.g. epinions.com)
Blogs
Wikis
Social networking sites
Consumer
Marketer
Link
building
News releases
Blogs/Online forums
Marketer
Retail
sites
Banner Ads/Links
Email/Spam
News Releases
Blogs/Online forums
Search Engine Optimization
Viral/social marketing
Consumer
Digital Communication Map
Consumer
Search
product
evaluation sites (beta)
Blogs/ Online forums
Feedback sites
search
Third party and retailer evaluation sites
(e.g. epinions.com)
Blogs
Wikis
Social networking sites
Link
Retail
Email
Company-owned
Marketer
building
News releases
Blogs/Online forums
Marketer
Social
sites
Banner Ads/Links
Email/Spam
News Releases
Blogs/Online forums
Search Engine Optimization
Viral/social marketing
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?
Consume
r
Marketer
Marketer
Nike, SunLife Insurance, Starbucks
Consumer
Let’s share…
Lunch someone?