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.
The
Marketing
Funnel
Awareness
&
Acquisition
Engagement
&
Conversion
Consumer Relationship
& Loyalty Marketing
Traditional Print,
TV, PR and Radio
Ads
FSCIs, Circulars, POS,
Catalogs and Call Centers
Direct Mail, email,
Frequent Shopper Cards
Traditional CPG Brand Economics
Marketing investments and programs were simple and narrowly defined
% of Net Income
% of Marketing Spend
100%
COGS
33.3%
Marketing
33.3%
80%
Promotion
60%
GP
33.3%
40%
10%
TV
40%
20%
0%
Print/Radio
50%
Web 1.0
Advances in digital technology changed the way people interact with and
experience a brand (late 1990’s – early 2000’s)
Awareness
&
Acquisition
“Top Down”
Approach
Digitally
Enabled
Traditional Print, TV,
PR and Radio Ads
• Search (SEO/SEM)
• Banner Ads
• Email lists
Engagement
&
Conversion
FSCIs, Circulars, POS,
Catalogs and Call Centers
• e-Commerce Sites
• Microsites
• Blogs
• IM Bots
Consumer Relationship
& Loyalty Marketing
Direct Mail, email,
Frequent Shopper Cards
• Personalized DM
• Desktop Widgets
• Toolbars
• Template-driven emails
• Online Points Prgms
Digital Marketing Tactics Have Evolved
Very rapid evolution from static “One Size Fits All” to dynamic digital marketing
tools starting around 2002 (post the first dot bomb period)
Tactics:
Web sites
Email
Ad Banners
Search
Web 1.0
Web 2.0
• Static web pages
• Forums
• News groups
• html
• Dynamic Web pages
• Web services
• Rich Internet Applications
• Apps/Online Tools
• Image-based static
emails
• Template, decision rule driven
dynamic emails
• Image rich/video embedded
• Flat static banner ads
• Rich media ads
• Real Time Bidding
• SEM keywords
• Keyword Optimization
• Attribution Models
• Image search
• Video in search
Web 3.0:
Social Communities are the New Major Marketing Channel
Consumers are becoming hyper-connected to digital content and to one another
Community
Digital Marketing is a $40B Business
Market Dynamic
Social Media and other interactive marketing channels are expected to show the
greatest increase in marketing effectiveness over the next 3 years.
Increasing
effectiveness
Increase
Stay the same
Decrease
Interactive
Social media
86%
4%
Search engine marketing
84%
13%
3%
Mobile
83%
15%
2%
Online video
83%
Game marketing
78%
Interactive display ads
73%
Email
62%
Static display ads
18%
Direct mail
Traditional
11%
Radio
11%
Telemarketing
11%
Yellow pages
Newspapers
49%
8%
6%
Declining
effectiveness
Source: Forrester Research US Interactive Marketer Online Survey n=235 Marketers
49%
29%
33%
3%
11%
15%
35%
59%
37%
19%
42%
15%
Magazines
4%
41%
37%
16%
Outdoor
23%
41%
21%
17%
13%
26%
40%
53%
64%
61%
(percentages may not total 100% because of rounding)
SECOND:
CONSUMERS
EXPECTATIONS in a
DIGITAL & SOCIAL
ENVIRONMENT
5 Ways To Be Competitive within Digital Marketing
“Criteria For Success”
Personalized
• Is your program personalized for your audience based
on their preferences?
Engaging
• Does your program engage and add value to your
audience?
Real Time
• Are you leveraging digital technologies for real-time
communications and connections with your brand?
Participatory
Useful
• Do you allow your audience to participate in and
contribute to marketing activities?
• Are you providing value and utility to your audience
beyond your product attributes?
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
ENTERTAINING?
www.shaveeverywhere.com became the #1 seller in Personal Grooming
category on Amazon.com for the first two months after campaign launch.
PERSONALIZED, HELPFUL AND PROFITABLE!
Goal: Help BOTH the Consumer (save money) and the Brand (make money)
PERSONALIZED, REAL TIME, HELPFUL
Personalized

Engaging

Real Time

Participatory

Useful

5 Ways To Be Competitive in Social Marketing
Today’s “social” consumers want to be part of communities that offer them
content and connection with others.
Socially Conscious
Helpful
Social Interactions
• Does your program align itself with a philanthropic
purpose and invite your audience to give back to a
larger cause?
• How are you using digital technologies to help service
your audience needs?
• Does your program allow for interactions between your
audience and their community?
Product Development
• How does your marketing program influence the
product development process?
Content
• Your audience will pay for good content, are you
providing it to them?
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
REAL TIME
Within 48 hours of the Haiti earthquake the app was built and available
SOCIAL – CONTENT is KEY!
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
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
REAL TIME, PRODUCT DEVELOPMENT
NBC’s Fashion Star
Allows consumers to buy designs the same day as the show at Macy’s, H&M and Saks Fifth
Avenue
REAL TIME, PRODUCT PERSONALIZATION TOOL www.mykleenextissue.com
Personalized

Engaging

Real Time

Participatory

Useful
?
Third:
Using segmentation and
personalization to
improve consumer
connection and relevance
Segmentation – Types and Requirements
Trading off complexity, scalability and effectiveness
Complexity
Consistency of
Behavior
in Segment
Scalability (Ease
of Identification,
Communication)
Depth
of
Insights
Defines drivers of
category usage &
brand choice
Behavioral
Low
Very High
High
Low
Low
Geo–Demographic
Low
Low
High
Low
Low
Attitudinal
Med
Low
Low
Med
Med
Needs, Attitudes
& Behaviors
High
High
Med
High
High
The ultimate goal is the most stable and insightful segmentation that can be
effectively scaled to full implementation
Objective
Develop detailed understanding of the target segments to drive better
personalization
Discrimination – K-Means wasn’t developed for marketing
Traditional Clustering Algorithms Are Not Well-Suited for Marketing Data
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.
Completely Disagree
Neutral
1
2
3
4
5
6
7
30%
Segment
μ  4.14
appears to slightly
agree
27%
11%
8%
1
Completely Agree
Actually more people
disagree than agree
7%
2
3
4
10%
5
7%
6
7
Discrimination – Bipolar responses makes for good targets!
Dimensions with good discrimination can yield deep, insights with strong
differentiation across the segments.
% Top/Bottom 2 Box of 7
“I can’t wait to buy the next
generation of smart phone”
Pilot Survey
(n=200)
Full Survey
(n=1,600)
Agree
27%
26%
Disagree
24%
20%
5
Primary Target Primary Target Secondary Target
12
Non-Target
Non-Target
Agree
68%
31%
26%
13%
5%
Disagree
4%
7%
15%
15%
51%
Actionable – Wireless Category Involvement
Segments exhibit major differences in Category Beliefs ….
% Top 2 Box out of 7
Efficiency
Optimizers
Socializers
Data
Centrics
%
%
%
Category Involvement/Uses
I can't live without my cell phone
62%
67%
My cell phone makes me more
productive
83%
My cell phone helps me balance
my business and personal life
Long Distance
Users
Glove
Compartment
Uninvolved
%
%
%
21%
19%
9%
18%
65%
21%
18%
8%
24%
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 phone
is for personal safety &security
16%
18%
26%
19%
57%
20%
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
2013
The 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
JuvédermTM Consultation Tool
The JuvédermTM iPad app helps Doctors sell treatments in the exam room
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
RESOURCES
INDUSTRY
BLOGS
AGENCY
BLOGS
TRENDS
SITES
PODCASTS /
VODCASTS
YOUTUBE /
FACEBOOK
50
Final Thoughts?
DILBERT
BY SCOTT ADAMS