How Brands Grow in a Digital Age

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How do brands grow?

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Promotions

Discounts

Raise the price

Loyalty scheme

Big ad campaign

NPD

Brand extensions

Engagement

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Andrew Ehrenberg Byron Sharp

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BrandsHave used in the past

twelve months

Average number of purchases in twelve

months

Maxwell House

Sanka

Tester’s Coffee

High Point

Folgers

Nescafe

Brim

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twelve months


months

Maxwell House 24%

Sanka 21%

Tester’s Coffee 22%

High Point 22%

Folgers 18%

Nescafe 13%

Brim 9%

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twelve months


months

Maxwell House 24% 3.6

Sanka 21% 3.2

Tester’s Coffee 22% 2.8

High Point 22% 2.6

Folgers 18% 2.7

Nescafe 13% 2.9

Brim 9% 2.4

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Observable in over 500 brands in 63 categories in 20 countries across 40 years



twelve months %Average number of

purchases in twelve months

Weetabix 40.2 4.7Klgs Cornflakes 39.8 5.1Shredded Wheat 26.2 4.4

Frosties 24.9 3.6Klgs Rice Krispies 23.8 3.1

Cheerios 19.9 4.2Crunchy Nut Cflks 19.3 3.7Klgs Coco Pops 18.6 3.4

Sugar Puffs 18.2 3.2Mini Crunch 15.7 2.8Shreddies 14.9 4.2Special K 13.7 4.7

Alpen 13.1 3.2Ready Brek 12.9 2.6

Quaker Oatso Simple 10.5 3.4Weetos 8.8 4.3

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• Competitive brands hardly differ in their loyalty levels.

• Their difference in size is due to the difference in their user bases.

“The nature of buying suggests that marketing a brand

successfully is very much like winning an election. While it might

be most satisfying to win an election by converting all voters to

avid party members, the reality is that to win an election a great

number of less avid party numbers, independent voters and

former voters for another party are needed as well.”

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Do the same rules apply in the digital world?

Are online shoppers the same?

Do I shop in the same way on Amazon?

The Kindle store isn’t like a book shop …

What about when Ocado refills my trolley automatically?

What does this all mean for marketing?


Virtual availability

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Get to know your digital audience

Digital advertising is good at nudging

And owned assets drive frequency levels

From knowing to recognising

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The brand living room

New rules of engagement online

Keep dialogue going

Engagement gives permission to talk product

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Reach

Driving reach is still really important

Penetration = reach

What does reach really mean in the digital world?

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Get noticed

Not as easy at it sounds

“if I want people to spot my ad I put Marilyn Monroe in it, if that doesn’t work I put Marilyn Monroe in topless”

It’s not just what you say, it’s how you say it

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Matching luggage

Marketing works hardest when it is visually joined up

But is also has to be behaviourally joined up

The really good ones can speak different languages

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Frictionless purchasing

Make the steps super easy

Lots of categories are impulse now

Loyalty levels are arrived at very quickly

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Honeymoon marketing

The post purchase period is short but full of promise

This is where you can nudge frequency most easily

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The 7 rules of virtual availability

• Get to know your digital audience

• The brand living room

• Reach

• Get noticed

• Matching luggage

• Frictionless purchasing

• Honeymoon marketing

The CurveNicholas Lovell

How do we make money when everything is going

free?

• “We’ve got to make people start valuing content again”

• “I deserve to be paid for my work”

You can• “You can’t make money from apps”

You can’t

You don’t

You need to earn the right

Free does not mean no revenues

Flip your thinking

Revenue opportunity

Marketing opportunity

Am

ou

nt

each

pers

on

is w

illin

g t

o p

ay

The Curve

The Curve – in 3 steps• Find an audience• Use technology to figure out what

they value and to talk to them again• Enable superfans

Freeloaders

Source of revenue

Word of mouth

Potential converts

Gawkers

Technology• Understand what your audience

values• Earn the right to talk to them again

Superfans

Let those who love what you do spend lots of

money on things they truly value

Target: $400,000

Average pledge:$38.28

An unsurprising distribution

47,946

24,636

1,090

11,530

900 148 100 10 40

10,000

20,000

30,000

40,000

50,000

60,000

$15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000

Number of pledges

Number of pledges

A very surprising distribution

719,190 739,080

65,400

1,153,000

225,000 74,000

100,000 50,000

40,000 $0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$15 $30 $60 $100 $250 $500 $1,000 $5,000 $10,000

Double Fine Project revenue

Double Fine Project revenue

A very surprising distribution

• Total raised: $3,336,371Pledges Money

>=$250 1.3% 15.4%

>=$1,000 0.1% 6.0%

>=$100 14.7% 51.9%

Love your superfans

Love everyone inbetween

Love your freeloaders

Thank you

@nicholaslovellwww.nicholaslovell.com

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Eurostar 3 dimensions of growth in a digital world

Lionel Benbassat

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Au menu aujourd’hui…

1.A bit of context

2.Eurostar 3 dimensions of growth in digital

3.What next ?

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A bit of context…

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Follow the yellow line

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Red is hot

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A big International brand?

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Rather a strong multi-local brand

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So far so good…

2013 RESULTS

Revenue: £857m +7% vs 2012

10.1m passengers +3% vs 2012

Q1 2014

Revenue: £227m +7% YOY

2.3m passenger +3% YOY

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Ramping up…

MARKET SHARE EVOLUTION

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Going down…

FIRST TIMERS EVOLUTION

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Our travellers lifecycle

CONSIDERATION

BUY

LOYAL

DISENGAGE

AWARENESS CONSIDERATION

BUY

LOYAL

DISENGAGE

AWARENESS

3.1 YEARS

6.3 YEARS

LEISUREBUSINESS &

EXPATS & RELATIVES

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What does that all mean?

1.More, more more…really ?

2.Hope we see you soon!

3.Love only last 3 years…

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3 dimensions of growth in digital

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Les grands mots…

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The first dimension

Through

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THE SEEDS OF LOVE…

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A new potential

Business custome

rs

Leisure customers

E* Generation

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And they engaged…

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The second dimension

Through

#GrowWithArenaWATERING THE SEEDS

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Give reasons and trigger

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It’s all about targeting

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The third dimension

Through

BELONGING

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Before everyone else

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Just for you, and just online

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What next?

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2015: Route Du Soleil – London- Marseille direct

2016: London – Amsterdam direct

To grow we need to…

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And…

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The refine…

WATER(Trigger)

NURTURE(Retain)

SEED(Engage)

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Merci

Sharp Edges Or Curves?A Toolkit for Growth

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Availability

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Valuable users

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Growth ‘from below’

Growth ‘from above’

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CrowdsourcingFreemiumGrowth-hackingDigital footprintCRMMember-get-memberNetwork effects‘Earned’ mediaPartner marketing

Effective SOVSalience

Brand extensions & launches‘Upper funnel’ marketing

Direct responseBrand comms

Content distribution

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Search demand vs. media investment

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A framework for growth

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Sharp Curves:

The Toolkit

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Every business has ‘owned’ data assets

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OWNED DATA

PLATFORM

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Owned content

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The Content Matrix

Awareness PurchaseEmotional

Ratio

nal

Inspire

Ente

rtai

n

Educate Conv

ince

videos

widgets

podcasts

photos

news

white papers

FAQs

articles

community

celebrityendorsements

events

webinars

product comparison

surveys

gamesapplications

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2008 2012 2014

35%

16%

6%

Facebook organic reach

1% of brands have an organic

reach of 84%

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This is probably the biggest Earned space

Rankings = votes

Votes = links

Content drives links

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Social extensions can increase CTR by 5 - 10%

This is probably the biggest Earned space

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Leveraging shared partnerships

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Data driven Paid marketing

1st party

2nd party

3rd party

Create rich and up to date audience segments

Use lookalike modelling to grow prospepcting scale

Data sync & segmentation Display

Search

Social Video

Site

Mobile

#GrowWithArenaContent hub

Influencers

Targeted Paid Media

Earned media and PR

Amplify with Paid

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Measuring Paid, Owned, and Earned impact

Scenario modelling on campaign GRPs and Reach across Owned, Earned, and Paid

Forecasting impact on key brand and business metrics and what if? scenario planning

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Take the principles of user-centred and data driven

Think about advertising as content, not advertising

It’s not just spots and space any more

Think Owned, Earned, Shared and not just Paid

Find the right blend for your brand, your audience, your sector

The toolkit for growth in the digital age - applying Curve thinking to Sharp edges

#GrowWithArenaTHANK YOU

How Brands Grow in a Digital Age

Marketing

Transcript of How Brands Grow in a Digital Age