digital ecosystem and web marketing

LESSON 3

digital ecosystemand web marketing

martedì 19 novembre 13

Introduction

In this lesson we present the new "digital ecosystem": a set of platforms, tools, people and companies that characterize our lives and that have deeply changed the way companies do business. The final part of this lesson explains how companies need to adapt the way they market and communicate to deal with this change.

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the digital ecosystem

The digital world has become complicated, really complicated!

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Between web sites, smartphones, desktop applications and the amalgam of social media platforms and services, it is difficult for many businesses to understand where they must focus their efforts.

To offer some clarity we can think of these elements as being part of a broader digital ecosystem.

The digital ecosystem of a business is a combination of all the relevant digital touch points, the people that interact with them, including the business processes and technological environment.

DIGITAL ECOSYSTEM OF COMPANY X


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How the marketing model has changed

Nowadays, the web is all about Facebook, Twitter, YouTube and Tumblr… Several years ago, these services did not exist, portals and search engines were still in their prime.

So what has changed?

In brief, users took control of the web andthe market shifted from a click-based engagementmodel to a fan-based engagement model.

Clicks are no longer the premium currency foran advertiser.

Fans are.....they want to be followed, shared,mentioned, even pinned!

Fans are the new click!


How was thischange possible?

A brief historyof Internet and marketing


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The World Wide Web was created in 1993

This was how the first web site looked! A lot of things have changed since then...


Since then, the way we communicate has changed

Nobody is using traditional mail anymore!

In other words, email hasoutnumbered snail mail 81 to 1.

People are using also Facebook messages and other digital mobile apps such as “Whatsapp”.


The content business has been turned upside down

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When was the last time you purchased a CD?This chart displays the decline in the music market in recent years, it also displays how people have started to purchase music from digital.

http://goo.gl/WYwbA


http://goo.gl/WYwbA

http://goo.gl/WYwbA

From traditional media to digital app

Whirlpool EMEA has just released a new iPhone App: Wavelicious that transformed the traditional recipe book into something more engaging, cool and functional.

The new Wavelicious app opens up a whole new world of microwave cooking possibilities.

Discover more and take a closer look here:http://www.whirlpool.co.uk/wavelicious/index.html


http://www.whirlpool.co.uk/wavelicious/index.html

http://www.whirlpool.co.uk/wavelicious/index.html

from traditional selling tonew selling models:

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The company has a warehouse-based model operating from a purpose-built picking centre, purely online without any physical shops, unusual for a supermarket.

Ocado has a single warehouse in Hatfield. Totes for each order move automatically around the warehouse, and are filled by picking staff at different sections. These are then delivered using a fleet of custom-built Mercedes-Benz refrigerated delivery vans.


http://en.wikipedia.org/wiki/Warehouse

http://en.wikipedia.org/wiki/Warehouse

http://en.wikipedia.org/wiki/Mercedes-Benz

http://en.wikipedia.org/wiki/Mercedes-Benz

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...so the world we live in has changed...

and the challenge for companies is to evolve


The old communication scheme

Too many brands still behave in the same old way

The way we produce and build brandsand stories hasn’t changed much, but weneed to rethink this classical model.

Most companies still create a 30-second commercial and try to coordinate other channels

TV

RadioInternet

Print


brand marketers simplydo not spend ENOUGH online

Just 12% of the budget is dedicated to Internet marketing!

Even if the people trust Internet more than any other channel!

Interactive Marketing’s Share of Total Ad Spending, 2009

12%INTERACTIVEMARKETING

Source: December 17, 2009, “US Interactive Marketing Forecast By Industry, 2009 to 2014”

Data is for the US only. Brand categories included are Consumer Goods, and Media

88% OTHER CHANNEL


The Internet is more trusted than any otherchannel - companies should use it more!

“To what extent do you trust each of the following sources of information”

Manufacturer’s website

Ads on TV

Email update you have asked to have sent to you

Ads on radio

Direct mail

Brand websites

Email from a company or brand

Ads in newspapers

Ads in magazines

Social networking site profiles from a company or

brand

Brand sponsorships

Ads that come up when you use a search engine

Company blog

Banner ads on websites you visit

20%

16%

15%

12%

10%

10%

9%9%

8%

6%

5%

4%

3%2%1%

Base: 1985 UK adults.Source European Technographics® Benchmark Survey, Q2 2010


People spend a lot of time on Internet!

2006 2010

Watching TV

Using the Internet

Listening to the radio

(offline)

Reading newspapers

(offline)

Reading magazines

(offline)

14 15

9

12

7 7

2 2 2 1

(1) Base: 1345 UK online adults Source European Technographics® Benchmark Survey, Q2 2006

(2) Base: 3208 UK online adults Source European Technographics® Benchmark Survey, Q2 2010

“In a typical week, how many hours do you spend doing each of the following?”


What do we have to changein the way we communicate?


The way we build brands must evolve

From this..

A liquid ecosystem of different touchpoints.

There is no distinction between traditional media and new media:every channel is important for its specific target .

All the channels are useful to follow the customer during their “journey” (see next slide)

TV

RadioInternet

Print

... to this.


the customers journey

This is an oriented graph that describes the journey of a user by representing the different touchpoints that characterize their interaction with the service.

The secret is to be present in a relevant way on each touchpoint,fusing digital and traditional media into a unique experience.

Casa Viaggio Lavoro Retail Lavoro Viaggio Social Casa Letto

MOBILE

COMPUTER

TV

RETAIL

PRINT

RADIO

OOH


How can we categorize the different touchpoints?

With the rise in importance of social media and online PR, we are seeing more companies change their method of budgeting, reporting and investing in media.

The POE model will the subject of a specific course coming soon.

The trend is towards a review of investments in the 3 main media buckets of earned, shared and paid which each give opportunities to influence customers.

Media type Definition Examples The role Benefits Challenges

Source: Forrester Research, Inc.


conclusion: Make the three layerswork together

• Interactive marketing is ready to lead your brand

• That doesn’t mean choosing one channel over another – it means organizing all channels into a multi-layered brand ecosystem

AudienceEngagementBig idea

1. Engage your users with an owned media core

2. Distribute your campaign via social and mobile media

3. Reach a broader audience using paid online and offline media


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THANK YOUComing soon!

The principles of Social Networking! Stay tuned for our tips and tricks including a video clip on how to use: Facebook, Twitter, Google+, Pinterest and Youtube.

For questions or suggestions please write to:

[email protected]


mailto:[email protected]

mailto:[email protected]

digital ecosystem and web marketing

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