promotions 2.0 team digital
TRANSCRIPT
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PROMOTIONS2.0 The future of
interactive marketing
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The Big ShiftAdvertising isn’t what it used to be
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New technologies,fragmented media, and a new
generation of empowered consumers
are rapidly changing the world of advertising...
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We’re Spending Less Time Here...
Radio-19%
TV-33%
Print-30%
Arbitron Research: Internet and Multimedia Study
Time spent with traditional media is declining
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...And More Time Here.New technologies are captivating consumers
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David Schenk, Marketing Smog
In 1971, the average person encountered
approximately
500 ad messages a day
Media fragmentation is increasing.
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7
Today, that number
is almost
5,000
David Schenk, Marketing Smog
making it harder toengage consumers.
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Online Advertising
“CPM Rates have been flat with
declining results for the past 2 years.”
Average click through rates now .01%
Paid Search “Losing its luster and expected to peak this year, followed by a decline.”
Borell Associates: The Big Shift Research Report (April 2008)
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PASSIVE
Digital Consumersare shifting from passive shoppers to active brand participants
36 million Download music or video*
user
40 million Browse the web fromtheir mobile phone**mobile
50 million Have created online content*
producer95 million
Participate in online Contests
& Sweepstakes****participant
110 million Participate in
Social Networks*
community
200 million US consumers have shopped online
Over 875 million worldwide***
customer
*Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
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0
7.5
15.0
22.5
30.0
Promotions Email Search Video Display
2008 2012
Source: Borell Associates inc. 2008
($ in
Billi
ons)
Online PromotionsSpending expected to surpass other online advertising
categories over the next 5 years.
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Because promotions deliver results...
60%of US consumers have purchased a brand due to a promotion.*
82%of consumers will provide personal information in exchange for a chance to win.***
*IMI International **eMarketer ***Jupiter Research: Online Privacy Report
80%of online consumers have entered a sweepstakes.**
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The New Marketing MixDigital Promotions + Advertising
Promotions + AdvertisingIncreased relevance & entertainment4
Brand Advertising Low Relevance - High Creative
Local or NicheHigh Relevance - Low Creative
Mass MarketingLow Relevance - Low Creative 1
2
3
Relevance & Entertainment* 2 axis that create consumer value in marketing:While all marketing is capable of playing in quadrant four, no single medium has broken through.
Rel
evan
t
Entertaining High
1
2
3
>Low >
>
>
Low
High
44
Increased Value Increased Value
Quadrant 4 = most value
Source: Joseph Jaffe
By combining digital promotions & advertising both relevance & entertainment value is increased moving closer to Quadrant 4.
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Old Marketing New Marketing
Spray & Pray
Large Audience
Low Relevance
Low Return
Attract & Engage
Smaller Audiences
High Relevance
High Return
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Promotions 2.0Marketers are using digital promotions today
to create buzz & cut through the clutter
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Digital PromotionsFrom Brand Awareness to Engagement
Bra
nd A
war
enes
sHigh Consumer Involvement
Bra
nd E
ngag
emen
t
Low Consumer Involvement
>>>
>
Sweepstakes
Mobile
Instant win
Advergames
UGC
Social
Core Audience
Extended Audience
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70% of CPG Super Bowl Advertisersused interactive promotions at the core of their 2008 campaigns.
Source: Promo Magazine
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User Generated Contestsdeep brand engagement & active participation
Doritos changes the gameContest winner beats out madison avenue
winning USA TODAY'S 2009 Super Bowl Ad Meter
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Advergamesbrand messages become viral brand experiences
30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial*
*2009, Harris Interactive Poll
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Advergamesbrand messages become viral brand experiences
0
10
20
30
40
Advergames Video Tell-a-FriendAdvergames/
MicrositesOnline
ContestsSocial
BookmarkingTell-a-friend
Viral Video
Viral Marketing Tactics with “Greatest Results”*
* 2008 eMarketer, Viral Marketing Survey
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Mobile Integrationparticipation anytime or anywhere
97% of consumers carry their phone at retail** Promotion Marketing Association Digital Summit
Largest US SMS Promotion New technologies driving innovation
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Inclusive Experiences Everyone wins something. Someone wins everything.
One person win a trip to the World SeriesEveryone wins a taco if base
is stolen during the game
One college wins a private concertwith the Dave Matthews Band
Everyone watches online
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Social Promotionspromotions worth talking about
Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers**
People Magazine: 3.6 million readers monthly**
*Comscore **infoplease.com
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Promotion HellPoor planning can lead to big problems
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Warning!Promotions are regulated & must comply with federal and
state laws to avoid civil & criminal penalties.
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Axl Rose vs. Dr. PepperEveryone in America gets a Dr. Pepper (sort of)
No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
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Rock the VoteStarbucks and Krispy Kreme face penalties for election day giveaways
Federal Statute prohibits any organization from “providing rewards for voting.”
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Pepsi StuffedHarrier Jet a steal at 700,000,000 points
Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet.
Result: Out of court settlement and a whole lot of bad PR.
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Promotions 3.0What’s next for advertising & promotions?
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More Channels. More Noise
New channels & products will continueto distract consumers & clutter the landscape
Clutter ContinuesBrands will look for new ways to engage consumers
as media & product proliferation expands
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Mobile DominatesMobile & Wireless devices will become the next
dominant consumer platform
65 Million U.S. Mobile Internet users in 2008 and growing*
* Promotion Marketing Association Digital Summit
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Social Media ExpandsSocial Media is bigger than you think... and it’s just getting started
U.S. Social Network Usage
All Adults 35%Adults 18-24 75%
* Pew Internet & American Life Project, December 2008
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Legal Issues Continue Privacy & Legal issues will continue to
create new challenges for marketers
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+David Griffith is managing director of teamDigital, a brand based digital agency specializing in technology driven promotions that engage consumers, create loyalty, and increase brand value.
Blogwww.Promotions2.com
Websitewww.teamDigital.com