12 tenets of digimarketing (ogilvyone)
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12 Tenets of DigiMarketing By Kent Wertime, President Asia Pacific, OgilvyOne Worldwide A keynote presentation at Ogilvy Verge Singapore For more information, visit www.the-open-room.com and verge.ogilvy.com.sgTRANSCRIPT
May 2008
DigiMarketingKey Tenets of Digital MarketingKey Tenets of Digital Marketing
From “Perpetual (Digital) Revolution”
Together, hardware and software will be the
catalyst for advances during the next 10 years
that will far exceed changes of the last 30 years.
Mr. Bill Gates, AWSJ, January 25, 2008
Tectonic Shifts
Traditional Media Digital Media
Traditional Media Digital Media
TV IPTV
Radio Digital Radio
Billboards Digital POS
Traditional Media Digital Media
US $455b US $55b
6% 23%
Source: IBM, “Navigating the Media Divide” Study
Traditional Media Digital Media
?
The Cross-Over Point
Traditional Media Digital Media
Why GM Gambled $1.5B On Digital
Over the next three years, General Motors will shift halfof its advertising budget to digital. Will that be enough toget the automobile manufacturer in gear?
Michael Estrin is associate editor at iMediaConnection.
Ongoing Confidence Gap
Source:Neo@Ogilvy
0%
5%
10%
15%
20%
25%
30%
2003 2004 2005 2006 2007 2008 (E)
% Consumer Time Spent Online
% Advertising Dollars Spent Online
The Marketing Confidence Gap
digital will
predominate
Traditional Marketing
DigiMarketing
From “New Media” to the New Mass Media (of One)01
0.9 b PC users
1.3 b internet users
1.3 b landline phones
1.4 b credit cards
1.5 b email boxes (0.8b)
1.5 b TVs
1.8 b active sms users
3. 0b mobile phone subscribers
Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore
Worldwide Today
New Media Barons
(cc) Lynette Webb, 2006
??
“Radio in My Head”
Yuan Shiao Nan
- Unique address
- Individual user behavior
- Personal settings & preferences
- Two-way – individual direct response
Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore
Mass Media of One (Addressability)
- Contextual content
From Targets to Participants02
Marketing Algorithm of Reach/Frequency
Engagement Metrics & Planning
From Mass to Personalization(and the Privacy Paradox)03
StressEase and Frequency
Ease and Stress
New RestrictionsUnprecedented Access
Access and Restriction
Tim Berners-Lee, BBC Interview, March 18, 2008:
On personal data:
“It’s mine – you can’t have it. If you want to use it for something, then you have to negotiate with me. I have to agree. I have to understand what I’m getting in return.”
August 4, 2006:
AOL released search records of 650,000 users over a 3-month period, 20 m searches
August 7, 2006:
they removed the file from their site
August 9, 2006:
New York Times identified & interviewed #4417749
August 22, 2006:
AOL Chief Tech Officer & 2 others “left”
September 12 2007: September 12 2007:
Why personalize?
80%want it
Up to
58%will pay
more attention
if they get it!
From Selling to Serving04
From Impressions to New Connections05
QR Codes
Each one of these MOBICODES link to a specific mobile site.
Quick Response (QR) Code for North West Airlines
QR-Codes - MAGGI On-pack Communication
Outside PackageOutside Package
Inside PackageInside Package
11stst weekweek 22ndnd weekweek 33rdrd weekweek
Outside Code to introduce MAGGI Recipe
New Connections
HKIA Program
From Old to New “Physics” of Marketing06
A MAJOR MEDIA REVOLUTION HAS JUST OCCURRED…
Consumers Spent More to Reach Media Than Marketers Spent to Reach Them. For years, the consumer went along with a model of intrusion perpetuated by the networks, advertisers and ad agencies…
The consumer has decided to take over…
Consumers are willing to pay for personalized information and entertainment that fits their interests.
August 23, 2004
Content User Generated
You Tube: 58 Million monthly viewers*
Distribution Power Growing
Leverage Impacted of Viral
Viral video
• Seen by and estimated 500MM people globally
• Equivalent value of $150MM+ in media
X
12 DigiMarketing Shifts
From Traditional To DigiMarketing
1. Viewers………………………………………… Participants
2. Impressions……………………………………. Involvement
3. Broadcast Mindset……………………………. Addressable Mindset
4. Schedule-Driven……………………………….Time-shifted, Borderless
5. Marketer-Driven………………………………..Consumer-Initiated
6. Push Marketing…………………………………Opt-in and Share
7. Traditional Media Planning……………………New Media Planning
8. Managed PR……………………………………Digital Influence
9. Integrated Marketing…………………………..Unified Marketing
10. Data-Blind……………………………………….Data-Driven
11. Post-Campaign………………………………….Real-time
12. Partial ROI...…………………………………….Optimization
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