Digital + Marketing 101

DIGITAL MARKETING & MEDIA | HTTP://JOANNAPENABICKLEY.TYPEPAD.COM

DIGITAL MARKETING : 101An introduction to the Digital Marketing for traditional marketers and agencies

Presented By:

Joanna Pena-Bickley VP, Interactive Group Creative Director

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MARKETING TO CONSUMERS

• Consumers are who we work, create and think for…• Consumers are fragmented, into niche audiences with passions and

lives• As creative marketers we should looking to play in the consumers

life• As creators we want our stories to influence human behavior• Consumers want a say in how we create• Consumers want us to tell a story that makes their conversations

more interesting

• Today's Consumer truths– Make it something I really care about – Make it fun, credible and memorable– Make it something I can easily tell others– Be true, so I don’t like to look like a liar


OUR CHANGING LANDSCAPE

• Our industry is changing because the consumers we market to and create for have changed.

• For the first time in a long time we are being forced to listen to consumers and what they are thinking, feeling and now commenting about the brands we represent.

• The traditional marketing model is being challenged, and (CMOs) can foresee a day when it will no longer

work. McKinsey Quarterly, 2005, Number 2


TECHNOLOGY AND ITS ROLE IN OUR WORLD

• First marketers and media mavens controlled how we consumed media.– “Your contract with the network when you get the show is that you’re going to watch the spots … Any time

you skip a commercial …you’re actually stealing the programming” - Jamie Kellner, CEO of Turner Broadcasting, April 2002

• Then…. The Power Shifted

Anytime - Any Place - Any WayAlain Thys - FutureLab


THE COUNTER-CULTURE IS THE MAINSTREAM

NEWS MEDIA

BBC Newlsline Ticker 19,550 /millionCNN 18,600New York Times 8,740Drudge Report 4,210Washington Post 3,755Reuters Online 3,680Guardian Unlimited 2,985Al Jazeera 2,925Wall Street Journal 1,995Le Monde 990The Huffington Post 959The Economist 740Daily Kos (State of theNation) 722Crooks&Liars (John Amato) 525

Xu Jing Lei 56,750/million

1,000-4,000comments per

article

Blogs vs. Mainstream News Media : Early days, yet traffic is growing

Every Citizen is a Reporter

In which (semi-)amateurs start to “play for real”

Alain Thys - FutureLab


MAINSTREAM CULTURE SHIFTS MEDIA

1. Desperate Housewives ABC 22.3 million

2. Dancing With the Stars ABC 22.0

3. CSI: Crime Scene Investigation CBS 20.8

Nielsen Rating – Nov 6- Nov 12

Evolution of Dance 35.7 MM

Pokemon Theme Music 17.3

Quick Change Artists 12.7

YouTube TOP 3 (20 nov 2006)

In which (semi-)amateurs start to “play for real”



THE SHIFT - THE MEDIUM CATCH UP

ONLINE MEDIA PLAY CATCH UP WITH TRADITIONAL OUTLETS

July 2006

(cc) Lynette Webb, 2006Alain Thys - FutureLab


THE BIGGEST DIGITAL MEDIA PLAYER - THE LONG TAIL

THE BIGGEST PLAYER IS

The long, long, long, long, long tail

1-200,000 1,000-200,000



DON’T CREATE DIGITAL TACTICS - CREATE CONVERSATIONS

• Often marketers think that creating a slick website, a video on YouTube or an email is the answer to their marketing needs and can move product off shelves.

• It is not.

• The paradigm shift has happened. – The noise we have made over the years has frustrated consumers and

they have tuned us and our advertising out.– Now we are mono-loging like the nut in the corner of the room talking to

ourselves.

• We are in the Conversation Economy. (David Armano)


STOP THE MONOLOG - START THE DIALOG

Art by: Andrew Davies


WHAT CREATES CONSUMER CONVERSATIONS?

of consumers don’t believe that companies tell the truth in advertisements

76%Yankelowich



CONVERSATIONS START WITH PEOPLE

THERE IS STILL ONE TRUSTED MEDIUM

LEFT IN THE WORLD

MY FRIENDS – THEIR FRIENDS – AND ALL THOSE WE COLLECTIVELY RESPECT



PEOPLE TRUST PEOPLE - NOT MARKETERS

33%

61%55%

51%

2003 2004 2005 2006

A person like yourself or a peer

Edelman Trust Barometer 2006When forming an opinion of a company, how credible would

the information be

from …

%

Academic 62

Doctor or similar 62

Person like yourself/peer 61

Financial Analyst 58

NGO Rep 58

Accountant 53

Lawyer 36

Regular employee 33

CEO 29

Union 19

Entertainer 17

PR person 16

Blogger 15



PEOPLE TRUST PEOPLE

People Trust Humans3Radio

4TV

4Magazines

14Other

14Retailer information

16Product/Company Information

21Internet

25Newspaper Coupons

33Word-of-mouth from family & friends

36In-store demonstration

49In-store Sales Associate

%Source

Source: CMO Council’s Retail Fluency Report, 2005

Most influential information sources in purchasing electronic goods? (TOP 3)



PEOPLE TRUST PEOPLE - THE IGNORED REALITY

This is not a “new hype” just an ignored reality

61% trust other people like themselves (as media) - Edelman Trust Barometer, 2006

2006

Diffusion studies found that WOM is 10x more effective than media advertising2001

Word-of-Mouth (WOM) is 7x more effective than newspaper advertising, 5x stronger than a personal sales pitch and 2x as effective as radio advertising

1955

36% of surveyed consumers reported learning of an innovation through word-of-mouth, while 48% reported being influenced by WOM when making a purchase decision

1967



DIGITAL MARKETING & COMMUNITY

Its is all about the audience.

Playing in the digital landscape…

Using promotions that give consumers something to talk and that are relevant to our consumers lives

We will tell brand stories that encourage Word of Mouth (WOM) and positive brand experiences


DOING DIGITAL RIGHT

• If we are to be a trusted member of a community we must appeal to consumers on an emotional level and give them stories that are worth repeating.

• The principals of emotional branding create lift and word of mouth qualities by using these 10 human experience building principles in every aspect of the digital marketing.

1. From Consumers To People - Consumers buy, people live.2. From Product To Experience - Products fulfill needs. Experiences fulfill desires.3. From Honesty To Trust - Honesty is expected. Trust is engaging and intimate. It

needs to be earned. 4. From Quality To Preference - Quality for the right price is a given today. Preference

creates the sale.5. From Notoriety To Aspiration - Being known does not mean that you are also loved!6. From Identity To Personality - Identity is recognition. Personality is about character

and charisma!7. From Function To Feel - The functionality of a product is about practical or

superficial qualities only. Sensorial design is about experiences.8. From Ubiquity To Presence - Ubiquity is seen. Emotional presence is felt.9. From Communication To Dialogue - Communication is telling. Dialogue is sharing.10. From Service To Relationship - Service is selling. Relationship is acknowledgment.


DIGITAL BRAND EXPERIENCES

• On the web, in a game or on the phone we are creating strategic design. • We create brand identities and consumer interfaces. • Our three rules:

– User Interface = Brand– Design is how it looks & works.– Simplicity.

• The introduction of Interactive and Experience Design• The Introduction to Consumer Engagement Mapping

– Which communicates the story that you are telling consumers

• Interaction Design (ID) is the professional discipline that defines the behavior of interactive products and how products communicate their functionality to the people who use them.

• Good interaction design makes products ranging from computer software to clock radios to cars more useful, usable, and desirable. In today's world of ubiquitous technology, practitioners of interaction design play an increasingly important role in the design of successful products. Through well-executed interaction design, businesses can increase their revenues, reduce development costs, and attract, satisfy, and retain loyal customers


MICROSITES & DIGITAL MEDIA- How do they work?

• The Presentation Layer– This layer controls the look and feel as

well as the consumer interacts with the site or media

– HTML, Flash, Ajax, XSL, JavaScript– Vector Design Files

• The Business Logic– This layer controls how the site works,

takes in information, pushes out confirmations

– Object Oriented Programming• XML,PHP, ASP, JSP

• The Data Layer– Databases and stored procedures

• MS SQL Server, My SQL, OracleUniversal symbol for database

.asp, .php. jsp pages not seen by the consumerBusiness Logic

is functional


THE PRESENTATION LAYER

Programming = Design

=


THE BUSINESS LOGIC LAYER

• A Business Objective Gets Turned in to an application

• A Business Objective Gets Turned in to an application


THE DATA LAYER

• Capturing Consumer Information & reporting


MICROSITES, MEDIA & ANALYTICS• The Website / Microsite

– What is a Hit?• A server hit is a call to the web server to serve information graphics or applications. A hit is not indicative

of a user.– What is a Unique User?

• According to IFABC Global Web Standards, a unique user is "An IP address plus a further identifier. Sites may use User Agent, Cookie and/or Registration ID.

– What is a registered User?• A consumer who has gone to your website and register information in to your database.

– What is a Referring URL?• This term is used when trying to track where a user came from. If I did a search for “the Chicago Bears”

My referring URL would be sports.yahoo.com– What is a Click Stream?

• A click stream is the sequence of clicks or pages requested as a visitor explores a Web site.– What is Cache?

• Your Cache is located in the system folders of all Macs and PCs that stores temporary internet files which allows the consumer faster browsing.

– What is a cookie?• A cookies is a small application that is placed in the cache of the consumer computer that helps record

their interactions as well as stores personal data.– What is a Pixel?

• This is a 1x1 transparent gif that assists the tracking of consumers coming from a particular banner ad or ad network.

– What is Tracking• Tracking is often a report generated by an analysis of a web servers activity log reports


MICROSITES, MEDIA AND ANALYTICS• Online Media

– What is a Click tag?• A click tag is a line of code that ad servers use serve that ad and record the impression and clicks.

– What is an Ad Server?• A central ad server is a computer server that stores advertisements and delivers them to website

visitors. Ad servers come in two flavors: local ad servers and third-party or remote ad servers. Local ad servers are typically run by a single publisher and serve ads to that publisher's domains, allowing fine-grained creative, formatting, and content control by that publisher. Remote ad servers can serve ads across domains owned by multiple publishers. They deliver the ads from one central source so that advertisers and publishers can track the distribution of their online advertisements, and have one location for controlling the rotation and distribution of their advertisements across the web.

– What is Rich Media?• is media that uses multiple forms of information content and information processing (e.g. text, audio,

graphics, animation, video, interactivity) to inform or entertain the (user) audience.

– What is Interactive Pre-roll?• Interactive video advertising (not an TV AD - a video experience

– What is remnant inventory?• All inventory that is not premium inventory on a publishers website

– What is CPM, CPC or CPA?• Cost Per Mille, Cost Per Click, Cost Per Acquisition (or Actions)

– What is Real-Time reporting?• Real-time reporting is a dashboard feature that most online advertising servers and or ad networks offer advertisers to view

the performance of their creative and ad placements. It allows marketers to make iterative changes to their campaigns for high impact.


THE DIGITAL MEDIUM

1. Rapid Response Culture2. Integrated interactive media channels

• Corporate website• Microsite• Email• Mobile• Online Media• On Demand

3. Immediate Results• User Clicks• User Registrations• Traffic• Optimization• All = Engagement measurement factors

4. Optimization of sites and OLA Online Media campaigns1. Just because we launch it does not mean our job is done - WE’VE ONLY JUST

BEGUN2. The internet is a live and interactive medium where the consumer expects and often

demands fresh and innovative content and experiences• An iterative medium


THE CHANGING LANDSCAPE


EVERYTHING STARTS WITH DESIGN & A GREAT STORY

• What is User Centered Design?– User-centered design (UCD) is a method for designing ease of use into the total user experience with

products. Key to this approach is the focus on understanding the users—their environment, their goals and tasks necessary to achieve these goals, their skills, and their abilities. Throughout the development cycle, feedback and input from users is gathered to ensure that the design is based on real data, and not the product development team’s imagination about what users do. This method enables the efficient design of effective interactive systems as UCD expedites and simplifies gathering user feedback and incorporates it into the design process.

– Specifically, user-centered design means that product teams start by observing and working with its users. Throughout the design process, users judge whether the product meets their requirements by evaluating prototypes. After a period of iterative evaluation and design, the technology is built to fit the mockups.

– User-centered design is about describing the whole user experience, not just what the users see on the page. It is about relating user goals to application functions, as opposed to taking requirements from someone and turning out web pages. The deliverable for user-centered design is a product that is useful, usable, and desirable to users, not just the final HTML, programming, or implementation.

– Note that user-centered design is different from and complementary to market research. Market research strives to answer the question, “What product should be built?” Marketing knows what customers are asking for, what drives their behavior at the point of sale, what they will pay for, and what determines their purchasing habits. User Experience, on the other hand, knows what customers actually do, what makes a product simple or difficult, usable or not. Thus, User Experience is better suited to answer the question, “How should the product be designed?”

– Marketing, User Experience, and Engineering offer a spectrum of perspectives in product development. Creating the right synergy between these functions so that a successful product is built is not an easy task. The section on “Implementing User-Centered Design” on p. 8 discusses not only how to build a User Experience team but also how to incorporate this triad of groups successfully into a product development team.


User Centered Design = EXPERIENCE NOT NOISE

• The key to creating online experiences is all in the team you hire.– They must be great story tellers

– They must be consumers

– They must be strategic artists

• It is important to have a well-balanced team that has the skills needed to implement a user-centered design approach to site, media and mobile, often referred to as User Experience (UE).

• Rarely are all these skills found in one person, so we will create a team of individuals who specialize in these areas who can contribute uniquely to the final product. YOUR BRAND.


DIGITAL MARKETING : 101An introduction to the Digital Marketing for traditional marketers and agencies

Presented By:

Joanna Pena-Bickley VP, Interactive Group Creative Director

+

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Digital + Marketing 101

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