BCM "Interactive: The Most Able Medium'' Presentation - November 2008

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In tough economic times, you can rely on interactive media to be the most able medium. Presentation given to clients of BCM Partnership, Brisbane, 20 November 2008

Transcript of BCM "Interactive: The Most Able Medium'' Presentation - November 2008

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Interactive: the most able medium

account

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Measure-

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Test

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How the dollars follows the eyeballs

1.

Finding influencers and becoming part of the conversation

2.

Keeping the shopfront open 24/7

3.

Targeting technology

4.

The emerging arena of mobile devices

5.

1. The $s follow the eyeballs

Internet advertising continues to grow – 30% 3rd quarter y-on-y

Source: Internet Advertising Bureau July to September 2008

Online advertising spend third quarter 2008

Source: Internet Advertising Bureau July to September 2008

$451,000,000J ul to Sep 2008

Search & Directories

47%

Classifieds25%

Display28%

33% increase

y-o-y29% increase

y-o-y

25% increase

y-o-y

But tracking just advertising is like looking at the tip of the iceberg

•Australian businesses invested more than $17.9 billion dollars on digital services in 2008

•Forecast that in 2009 businesses will engage with 40% of their customers through digital services

Source: AIMIA Digital Services Index November 2008

Firstly some inspiration

The first social media president

• The power of a database and anticipated, personal and relevant messages

Turn down the SPAM and turn up the permission

Clear, simple call to action with one objective in mind - permission

1. A site that encourages social networking

Email landing page

2. Communicate with personal and relevant

messages

3. Distribute content on third party sites

4. Harness social networking

5. Write a blog

6. Take advantage of new technologies

7. Experiment

2. Leverage influencers

and become part of the conversation

Online community engagement strategy

•Social media is the use of electronic and internet tools for the purpose of sharing and discussing information and experiences with other human beings

•Social media can take many different forms, including internet forums, weblogs, wikis, podcasts, pictures and video

•70% online adults use social media, often for product research

•Before making a purchase, 33% of internet users engage in social media to investigate a product’s reputation

•26% of people change their mind about making a purchase after reading about the opinions of others online

Source: August/September Insight Report Market Tools

Social media is more than a passing fad

Source: Nielsen OnlineAustralian Internet and Technology Report

Influencing the influencers – listening and acting in the blogosphere

How social media turned against Motrin

Listening to the influencers – and taking action!

Nike – distributable content via a widget

Nike – distributable content via a widget

Triumph – social advertising

The take out!

• Identify your influencers online and engage with them

• Its easier to keep a current customer, than to acquire a new one – listen to the blogosphere

•Make your content valuable and distributable, and consumers will do the rest

•Performance based ad formats in social media will maximise ROI

The take out!

3. Be open for business 24/7

• What started out as a relatively simple, performance-based business model has become one of the most efficient forms of marketing around

The power of SEM

The measurability of SEM

•As with all online media, paid search is completely measurable

$60,000,000

$109,000,000

$192,000,000

$331,000,000

$584,000,000

$759,000,000

Oct'02 toSep'03

Oct'03 toSep'04

Oct'04 toSep'05

Oct'05 toSep'06

Oct'06 toSep'07

Oct'07 toSep'08

+82%

+76%

+72%

+76%

+30%

Search and directories expenditure 2002-2008

Source: PricewaterhouseCoopers – IAB Online Advertising Expenditure Report – September 2008

70% of online transactions begin with a search query

Source Nielsen Net Ratings 2008

37% 36%

30%

20% 19%17%

0%

1%

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28%

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31%

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37%

38%

Television Word ofMouth

Print Shop Out ofHome

Radio

67% of online search is driven by offline channels

Source: iProspect, “Offline Channel Influence on Online Search Behavior,” 2007.

6%

12%

14%

24%

44%

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All or part ofcompany/product

slogan or advertising

Other Keyword/s

I don't remember

All or part ofproduct/service name

All or part of companyname

68% search via branded key words

Source: Jupiter Research/Ipsos Insight Consumer Survey (6/07)

68% Branded Keywords

Searchers are buyers

•One in three online search users who perform a search as a result of exposure to an offline channel go on to make a purchase as a result of that search

Source: iProspect, “Offline Channel Influence on Online Search Behavior,” 2007.

•Consider where the click will land

• Is there a high correlation between what is written in the search ads and where the consumer will land?

•Capture data and continue the conversation

Wallace Bishop case study - SEM effectiveness

Source: Wallace Bishop

Conversion

rate 20%

DoubledGold Card signups

Doubleddaily

visitors

0

5

10

15

20

25

30

35

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September/October 2007 September/October 2008

116%

incr

ease

in le

ads

y-

o-y

QUT case study - SEM effectiveness

Source: 2006/2007 Data referenced from Hobsons Report on Faculty of Business Undergraduate Prospects July 06-June08

116%increase inleads y-o-y

The take out!

•Be available to engage with consumers 24/7 with a well optimised site

•SEM will open the door when the consumer is ready to initiate a contact

•Plan your SEM campaign holistically in conjunction with offline media activity

•Consider where you are sending the prospect – does the landing page offer an easy brand interaction or transaction?

•Capture data and continue the conversation •Remember your database is a brand asset

and should be valued accordingly

The take out!

4. Targeting technology

for increased ROI

What is it?

•Behaviourial targeting allows advertisers to deliver specific targeted ads to consumers based on interest and intent as indicated by previous online user behaviour

A typical car buyer

Purchase cycle – motor vehicles

Source: American Advertising Federation (AAF) November 2006

In market

Purchase

Vehicle purchase process takes 8-12 weeks

Less than 5% of this time is spent car research sites

5%

The majority of online time online

is spent on more normal browsing

95%

How does it work?

• Behavourial targeting anonymously follows consumer’s interests, patterns and behaviours

• Consumer’s actions are monitored• Search terms entered

• Editorial content viewed

• Ads clicked on

• Channels or micro-sites visited

0100002000030000400005000060000700008000090000

100000110000120000130000140000150000160000170000180000190000200000210000220000230000240000250000260000270000280000290000300000310000320000330000340000350000360000370000380000390000400000410000420000430000440000450000460000470000480000490000500000510000520000530000540000550000560000570000580000590000600000610000620000630000640000650000660000670000680000690000700000710000720000730000740000750000760000770000780000790000800000810000820000830000840000850000860000870000880000890000900000910000920000930000940000950000

Run of Network 25+ People looking for cars

Toyota/Yahoo7 case study

Source: Yohoo7

95% Click th

rough

lift

Users searched keywords:ToyotaHoldenCar Dealershipcarsale.com.au HyundaiCar ratingdrive.com.auSmall Cars Consumers visited:Yahoo7-Drive Yahoo7-Directory-Automotive

Benefits

•Marketers are able to reach more engaged audiences with fewer advertising impressions with behavioural targeting

1.

Benefits

• Users tend to find behaviourally targeted ads more relevant to their needs, and therefore more acceptable, even welcome

2.

Benefits

•Publishers are able to monetize their niche advertising opportunities – remnant inventory that is hard to sell without behavioural targeting

3.

Benefits

52.4%

32.9%30.5%

14.6%

4.9%0%

10%

20%

30%

40%

50%

Behavioural Demographic Contextual Geographic Other(includingDaypart)

Most effective online targeting methods

Source: American Advertising Federation (AAF) November 2006

$220,000,000$350,000,000

$575,000,000

$1,000,000,000

$1,650,000,000

$2,600,000,000

$3,800,000,000

0

100,000,000

200,000,000

300,000,000

400,000,000

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600,000,000

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1,000,000,000

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2,000,000,000

2,100,000,000

2,200,000,000

2,300,000,000

2,400,000,000

2,500,000,000

2,600,000,000

2,700,000,000

2,800,000,000

2,900,000,000

3,000,000,000

3,100,000,000

3,200,000,000

3,300,000,000

3,400,000,000

3,500,000,000

3,600,000,000

3,700,000,000

3,800,000,000

2005 2006 2007 2008 2009 2010 2011

Projections for US behaviourally targeted spend

Source: American Advertising Federation (AAF) November 2006

The take out!

•Ensure your communications are taking advantage of better targeting options which will become more readily available in 2009

•This will deliver your brand less wastage and more relevant communication to prospects who are receptive to the message

•Resulting in improved ROI

The take out!

5. Emerging arena of mobile devices

Australian mobile snapshot

• There are now more mobile phones than people in Australia (21.26 million phones in service)

• 9% of current mobile phone user base has a Smartphone

Mobile – sobering thoughts

Shop Savvy – ‘Pull’ 1D barcode scanning

The take out!

•Be aware of marketing hype and be realistic about what you can achieve on mobile devices in the current environment

•Mobile is a good medium to engage with early adopters, if that is your market

•A consideration for 2010 plans and beyond, and still be well ahead of the pack

The take out!

Wrap up

Questions

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