Promotions 2.0

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PROMOTIONS 2.0 The future of interactive marketing

description

Our original Promotions 2.0 Presentation from spring of 2009.

Transcript of Promotions 2.0

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PROMOTIONS2.0 The future of

interactive marketing

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The Big ShiftAdvertising isn’t what it used to be

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New technologies,fragmented media, and a new

generation of empowered consumers

are rapidly changing the world of advertising...

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We’re Spending Less Time Here...

Radio-19%

TV-33%

Print-30%

Arbitron Research: Internet and Multimedia Study

Time spent with traditional media is declining

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...And More Time Here.New technologies are captivating consumers

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David Schenk, Marketing Smog

In 1971, the average person encountered

approximately

500 ad messages a day

Media fragmentation is increasing.

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7

Today, that number

is almost

5,000

David Schenk, Marketing Smog

making it harder toengage consumers.

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Online Advertising

“CPM Rates have been flat with

declining results for the past 2 years.”

Average click through rates now .01%

Paid Search “Losing its luster and expected to peak this year, followed by a decline.”

Borell Associates: The Big Shift Research Report (April 2008)

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PASSIVE

Digital Consumersare shifting from passive shoppers to active brand participants

36 million Download music or video*

user

40 million Browse the web fromtheir mobile phone**mobile

50 million Have created online content*

producer95 million

Participate in online Contests

& Sweepstakes****participant

110 million Participate in

Social Networks*

community

200 million US consumers have shopped online

Over 875 million worldwide***

customer

*Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano

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0

7.5

15.0

22.5

30.0

Promotions Email Search Video Display

2008 2012

Source: Borell Associates inc. 2008

($ in

Billi

ons)

Online PromotionsSpending expected to surpass other online advertising

categories over the next 5 years.

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Because promotions deliver results...

60%of US consumers have purchased a brand due to a promotion.*

82%of consumers will provide personal information in exchange for a chance to win.***

*IMI International **eMarketer ***Jupiter Research: Online Privacy Report

80%of online consumers have entered a sweepstakes.**

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The New Marketing MixDigital Promotions + Advertising

Promotions + AdvertisingIncreased relevance & entertainment4

Brand Advertising Low Relevance - High Creative

Local or NicheHigh Relevance - Low Creative

Mass MarketingLow Relevance - Low Creative 1

2

3

Relevance & Entertainment* 2 axis that create consumer value in marketing:While all marketing is capable of playing in quadrant four, no single medium has broken through.

Rel

evan

t

Entertaining High

1

2

3

>Low >

>

>

Low

High

44

Increased Value Increased Value

Quadrant 4 = most value

Source: Joseph Jaffe

By combining digital promotions & advertising both relevance & entertainment value is increased moving closer to Quadrant 4.

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Old Marketing New Marketing

Spray & Pray

Large Audience

Low Relevance

Low Return

Attract & Engage

Smaller Audiences

High Relevance

High Return

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Promotions 2.0Marketers are using digital promotions today

to create buzz & cut through the clutter

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Digital PromotionsFrom Brand Awareness to Engagement

Bra

nd A

war

enes

sHigh Consumer Involvement

Bra

nd E

ngag

emen

t

Low Consumer Involvement

>>>

>

Sweepstakes

Mobile

Instant win

Advergames

UGC

Social

Core Audience

Extended Audience

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70% of CPG Super Bowl Advertisersused interactive promotions at the core of their 2008 campaigns.

Source: Promo Magazine

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User Generated Contestsdeep brand engagement & active participation

Doritos changes the gameContest winner beats out madison avenue

winning USA TODAY'S 2009 Super Bowl Ad Meter

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Advergamesbrand messages become viral brand experiences

30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial*

*2009, Harris Interactive Poll

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Advergamesbrand messages become viral brand experiences

0

10

20

30

40

Advergames Video Tell-a-FriendAdvergames/

MicrositesOnline

ContestsSocial

BookmarkingTell-a-friend

Viral Video

Viral Marketing Tactics with “Greatest Results”*

* 2008 eMarketer, Viral Marketing Survey

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Mobile Integrationparticipation anytime or anywhere

97% of consumers carry their phone at retail** Promotion Marketing Association Digital Summit

Largest US SMS Promotion New technologies driving innovation

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Inclusive Experiences Everyone wins something. Someone wins everything.

One person win a trip to the World SeriesEveryone wins a taco if base

is stolen during the game

One college wins a private concertwith the Dave Matthews Band

Everyone watches online

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Social Promotionspromotions worth talking about

Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers**

People Magazine: 3.6 million readers monthly**

*Comscore **infoplease.com

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Promotion HellPoor planning can lead to big problems

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Warning!Promotions are regulated & must comply with federal and

state laws to avoid civil & criminal penalties.

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Axl Rose vs. Dr. PepperEveryone in America gets a Dr. Pepper (sort of)

No Artist Approval + No Rules + Technical Problems = Pending Lawsuit

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Rock the VoteStarbucks and Krispy Kreme face penalties for election day giveaways

Federal Statute prohibits any organization from “providing rewards for voting.”

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Pepsi StuffedHarrier Jet a steal at 700,000,000 points

Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet.

Result: Out of court settlement and a whole lot of bad PR.

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Promotions 3.0What’s next for advertising & promotions?

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More Channels. More Noise

New channels & products will continueto distract consumers & clutter the landscape

Clutter ContinuesBrands will look for new ways to engage consumers

as media & product proliferation expands

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Mobile DominatesMobile & Wireless devices will become the next

dominant consumer platform

65 Million U.S. Mobile Internet users in 2008 and growing*

* Promotion Marketing Association Digital Summit

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Social Media ExpandsSocial Media is bigger than you think... and it’s just getting started

U.S. Social Network Usage

All Adults 35%Adults 18-24 75%

* Pew Internet & American Life Project, December 2008

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Legal Issues Continue Privacy & Legal issues will continue to

create new challenges for marketers

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+David Griffith is managing director of teamDigital, a brand based digital agency specializing in technology driven promotions that engage consumers, create loyalty, and increase brand value.

Blogwww.Promotions2.com

Websitewww.teamDigital.com