the digimarketing imperative
TRANSCRIPT
Kent Wertime
Chief Operating Officer Ogilvy & Mather Asia Pacific
The DigiMarketing Imperative
Tectonic Changes
The Global User Base
Source: http://www.internetworldstats.com/
1996
Asia44% of global
2012
U.S. 11.7%
Rest of world88.3%
U.S. 66%
Rest of world34%
China 22.9%
Japan 4.6%
India 4.7%
The Digital Device Shift
1 Million new devices connected daily
The Digital Device Shift
Toward 10 Billion
8
DigiMarketing Shift:
A defining topic for a generation of marketing
Three Eras of Digital Marketing
New & Experimental
90’s
Mass & Mainstream
00’s
Predominant & Pervasive
10’s
Global Ad Spend
$500 Billion
2012f
Global Ad Spend
2004
41.5%
4.3%
6.5%
26.1%
15.4%
6.0%
43.7%
18.6%
5.2%
16.6%
9.8%
5.9%
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
2012f
Global Ad Spend
2004
$16B $100B
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
India Ad Spend
2012f
India Ad Spend
2004
38.5%
0.6%
2.0%
47.2%
4.3%
7.4%
41.6%
4.5%
4.8%
40.7%
2.4%
5.6%
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
2012f
India Ad Spend
2004
$17M $353MM
Source: GroupM TYNY Summer 2011
TV
Internet
Radio
Newspaper
Magazines
Outdoors
Confidence Gap:
A continued lag,an under-invested market
Marketers Still Lag Consumers
Source: eMarketer 2008, EdisonMedia Research 2008, MRI 2008, Nielsen Media Research 2008, Neo@Ogilvy Media Analytics, PricewaterhouseCoopers LLP, Wilkofsky Gruen Associate. November 2009 Report,eMarketer Jun 2010 "Online Ad Spend Bounces Back" and Forrester Dec 2010 "Understanding the Changing Needs of the US Online Consumer"
% Consumer Time Spent Online
% Advertising Dollars Spent Online
The Marketing Confidence Gap
DigiMarketing Imperatives
01 From P-O-E to P-U-C
Marketer Organizing Principle - POE
Paid Owned Earned
Consumer Organizing Principle - PUC
Participation Utility Contribution
More tweets, lower the price
Consumer Organizing Principle - PUC
Participation Utility
Source: Mobile Apps Worldwide Forecast 2011-2015
9.00AMSINGTEL
Slide to unlock
Friday, March 17
9:00
2011 2015
89.0 B
18.4 B
Nike, Becks, Smirnoff, Tiger beer & Adidas help you to find activities around your location
North Face provides you with the latest Snow reports
NIVEA tells you what sun lotion you should use
Once a week
Once a quarter
Branded Utility Proliferation
Consumer Organizing Principle - PUC
Participation Utility Contribution
Loyalty / Purchase Influence / Word-of-Mouth
New Dimension of Customer Value
Customer Contribution
• Fan sites• Viral videos• Blog postings• Voting• Consumer critiques• Co-creation• Crowd sourcing• Customer feedback surveys• Loyalty clubs online
• Virtual fan events• Online corporate events• Online pre-ordering• Friend-get-friend campaigns• Bulk purchasing online• Participation in online promotions• Use of company’s virtual goods• Product customization and sharing• Secondly markets (E-Bay)
Customer Contribution
Inviting community members of to openly submit their ideas for the new Muji product.
More than 50 of Muji product has been developed from this community.
Community Driven Product Innovation
02 Content Ecosystems
Content = Digital Bait
WATSON on Jeopardy!
ToplineResults
XXX in validated Lead Venue
XXX in Win Revenue
03 Social at the Center
04 Data Value Exchange
Data Value Transaction
Predictive models / Recos
Customer user preferences
Personal comparisons to average
Value prompts
Offer bundles
Participation incentives
Co-brand data sharing / offers
Personal habits tracking
05 Managing Consumer Trust(Constantly)
Tim Berners-Lee, Developer of the InternetBBC 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.”
Thank you!