Digital and Emerging Marketing Tools in a Downturn

The traditional marketing model is being challenged, and (CMOs)

can foresee a day when it will no longer work.

McKinsey Quarterly, 2005, Number 2

Crisis In Mass Marketing 18%: Proportion of TV advertising campaigns generating positive ROI

54 cents: Average return in sales for every $1 spent on advertising

256%: The increase in TV advertising costs (CPM) in the past decade

84%: Proportion of B2B marketing campaigns resulting in falling sales

100%: The increase needed in advertising spend to add 1-2% in sales

14%: Proportion of people who trust advertising information

90%: Proportion of people who can skip TV ads who do skip TV ads

80%: Market share of video recorders with ad skipping technology in 2008

95%: The failure rate for new product introductions

117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965

3000: Number of advertising messages people are exposed to per day

56%: Proportion of people who avoid buying products from companies who they think advertise too much

65%: Proportion of people who believe that they are constantly bombarded with too much advertising

69%: Proportion of people interested in technology or devices that enable them to skip or block advertising

So

urc

e: Ju

stin

Kir

by &

Pa

ul M

ars

de

n (

20

06

).

Co

nn

ecte

d m

ark

etin

g.

Oxfo

rd, U

K: B

utte

rwo

rth

-He

ine

ma

nn

. xix

Information Proliferation

Media Fragmentation - Then, and Now

1960 Now

6 TV channels/home 130

8,400 Magazines 17,300

4,400 Radio stations 13,500

None Internet stations 35,000 +

None Pages on Google 12 B +

None Blogs 200 M +

Source: Marketing Leadership Council - www.mlc.executiveboard.com

Where Everything Is Headed

2008 2050?

Digital

Non-Digital

Today

Source: Google1996

360 Digital Marketing World

Online Media

NewsCommunity

sites

Special Interest

EmaileNewsletterseCardseMail

Wikis

FolksonomySocial

Bookmarking

Digital Devices Phones DVR

(Tivo)PDAs Game

ConsolesMicrocasting

VBlogs

Digital Radio

WebcastingPodcasting

Syndication

Real Simple Syndication (RSS)

Content Partnerships

ConversationsBlogs

Listservs

Message Boards

Chat Rooms/Events

IM

Text-messaging

Photo Blogs

Viral Content

Web SitesPress Rooms

w/RSSOnline

AdvertisingGames & Contests

Search

Keyword Marketing

Blog Aggregators

Blog Search Engines

Search Engine Optimization

Manifestos

eAlerts

Citizen Action

Meetups

Source: Ogilvy

Source: Brian Solis via Flickr

SOCIAL MEDIA IS AN UMBRELLA TERM

THAT DEFINES THE VARIOUS ACTIVITIES

THAT INTEGRATE TECHNOLOGY,

SOCIAL INTERACTION, AND THE

CONSTRUCTION OF WORDS,

PICTURES, VIDEOS AND AUDIO. http://www.wikipedia.org

Social Media: Defined!

More Simply Put:

“Social Media is

people having

conversations

online.”

The conversations are powered by…

Blogs

Widgets

Micro Blogs

Online Chat

RSS

Social Networks

Social Bookmarks

Message Boards

Podcasts

Video Sharing Sites

Photo Sharing Sites

Virtual Worlds

Wikis

(…just to name a few)

Who‟s Out There?

More than half of all online American teenagers use

social networking sites.

64% of online teenagers created content

*

*

Who Participates in Social Media?

“Every brand needs to be relevant and part

of a community. They need to open a

dialogue with their consumers, but they also

need to be prepared for what could be

negative feedback and I don’t think all

marketers are ready for that.”

- Bob Ivins, EVP, comScore

“How-To”

Social Media Conversations

“There’s a real cost to ignoring the conversation.”

(evangelists)Word of Mouth Among Airlines

Source: Harvard Business Review

Word Of Mouth Is A Powerful Force

No Love for Iams

What if half the store shelf

said, “Don’t Touch This?”

Learn to Blog

Foundation of

content/consistency/

connection

Metaphor for Social

Media & networking

Transferable skills to

video & social nets…

Transferrable benefits

to SEO, SEM & TLM

Small Business Bloggers

Blogging + Email

Micro Blogging

Monitor conversations

Use for promotions

Live „twittering‟ from

events

Source for breaking

info

For the hyper-involved

Comcast Learns Social Media…

Comcast tech filmed

sleeping…waiting for his own

customer service team.

A viral video & blog sensation (of

course!)

Popular blogger „Tweets‟ his

Comcast woes

Comcast calls him 20 min later

and resolves his issues!

Social Networks

To learn to express

opinions

To share experiences

To make friends

To participate

To find a job

To sell something

Niche Networks

Over 500,000 dogs

Most dogs added in a day:

5,920 (February 19, 2008)

Beyond Students

Real Estate

InvestmentsMoms

My Space Politics

LinkedIn

Create a group & discussion

Connect with professionals

Connect with customers

Ask questions

Approach prospects

Idea-Centered Communities

Small business focused credit card company is changing the business financing discussion through ideas

Created ideablog.com to stir the conversation about what it stands for

Positioning itself as the most helpful credit card company to small business

Involved in other small business related causes to help developing countries

Online resources for small business owners just getting started

Collaborative Idea Generation

Leverage the wisdom of crowds/customers to improve the company

Submit, vote, watch, see what gets put into action

Integrate into other TLM activities

Dell

Oracle

Starbucks

Share Things

Like Photos… …and Videos

Podcasts & Vodcasts

More human &

emotional than

blogging

Share thought

leadership

Low investment

Easy distribution

Differentiator

Widgets, Gadgets & iPhone Apps

Small applications that meet specific

needs

Backed by high value data source

Brings your assets to a customers

desktop / homepage / website

Cannot standalone – needs marketing

„seeding support‟

Tell The World - PR 2.0

Social Media

Internal External

Blogs X-Intuit: Innovation teams at Intuit use blogs to share new ideas & best practices

Within team: The JumpUp team uses its blog to discuss strategy

The QuickBooks Team blog focuses on QuickBooks and small business issues

TurboTax Support blogs focus on tax law and TurboTax

Wikis Well over 100 teams at Intuit use wikis to manage projects, share insights and collaborate across remote locations

TaxAlmanac.org is the 21st most popular wiki in the world and focuses on tax issues for accounting professionals

Online Forums

Intuit employees regularly engage on online forums, run both by Intuit and by third parties, with clear guidelines about posting and transparency

QuickBooks Online Community

Quicken Online Community

TurboTax Support Forums

Accountant Online Community

JumpUp Small Business Forums

Other Research teams are using online ethnography journals & vlogs to make it easier for SBOs to track daily activities

JumpUp launched summer 2006, including tagging, bookmarks, personalized profiles and forums

Podcasts launched by QuickBooks & TurboTax

Intuit: Early Adopters of Social Media

Top ten obstacles to new media

1) Inadequate resources (time and/or money)

2) Disconnected employees

3) Resistance to change

4) Desire to control communication/fear of unknown

5) Not convinced of benefits

6) Perceived lack of IT capabilities

7) Resistant culture

8) Senior management won‟t allow it

9) Legal/governance/regulation issues

10) Would require too much training

Ask Yourself…

How does information flow in my industry?

Where do people get their information?

Does information flow in a centralized way?

How do consumers interact in my industry?

Do they hangout in networks?

How big are these networks?

Is my industry conservative?

What influences my customers?

Who influences my customers?

Is my product risky?

You Define The Risks In Social Media

How do you ensure the brand is not comprised through comments?

How do you measure ROI? How do you know if you succeed?

How do you ensure the brand is not compromised through the company's

bloggers' posts?

Will we need to promote the blog/social media programs and how will

they impact our current marketing strategy?

What do we do if IT does not have time to be involved?

Is it worth the additional time?

Do you have the people resources needed?

Can you afford the additional operational (software, hosting) expenses?

What happens if your competitor is less risk adverse than you and steps

into the space first?

How do you safeguard against getting “blown-up?”

Five Keys to Success

Be Generous With Your Knowledge Share beyond the marketing speak

Be Consistent Calendar your activities – daily, weekly, monthly

routine

Always Deliver Value Listen, think, revise, teach, repeat

Take A Stand Take your strong positions to market

Focus On The Long-term Benefits Track your results in months & years

New Media Homework!

Find blogs in your area of interest using Technorati

Seek out podcasts for marketers (or whatever you fancy) in iTunes or Podcast Alley

Sign up for a free RSS reader (Bloglines, Google Reader) and consume feeds

Join LinkedIn

Anyone not visited YouTube yet? Look for your favorite things there too

New Media Extra Credit

Become a regular commenter on blogs that interest

you

Join Facebook & ask a question on LinkedIn

Start a blog of your own on a topic of your choice

Create a podcast

Switch over some of your newsletter subscriptions to

RSS feeds

Get a Flickr account to share photos

Word of Mouth

Word of mouth: The act of consumers providing information to other consumers.

Word of mouth marketing:Giving people a reason to talk about your products and services, and making it easier for that conversation to take place.

It is the art and science of building active, mutually beneficial consumer-to-consumer and consumer-to-marketer communications.

WOM – Simple Steps to Start

1. Talkers: People who are more likely to relay your word of mouth message

2. Topics: Portable concepts for people to talk about, simple ideas that are word-of-mouth friendly

3. Tools: Techniques and technology that make it easier for word of mouth conversations to take place

4. Taking part: Participating in the word of mouth conversation and engaging in a genuine two-way dialog

5. Tracking: Measuring the online conversation

Source: Andy Sernovitz

Community – Simple Steps to Start

1. Host customer events. Follow the Saturn model for hosting an annual customer picnic, or local/regional customer appreciation events.

2. Create owners groups. If you manufacture products, create and support owners groups, like Harley-Davidson does with the Harley Owners Groups (HOGs).

3. Create an online customer support group. Think of the groups created by Dell Computer, Microsoft, eBay or Cisco.

4. Create an email discussion group. Think AMA SIGs - They're easy and free using Yahoo! or Google Groups and Topica.com. Ask several of your members to act as volunteer moderators.

5. Feature the online community in other touchpoints. Your website, newsletter and call center should reference the community.

6. Support fan web sites. If you are lucky enough to have one…

Adapted from: Creating Customer Evangelists

Q & A

Need help after the presentation? Email dana@marketingsavant.com