The Role Of Digital Marketing

The Role of Digital Marketing in Current Digital Age

Dr Ian FenwickSasin Graduate Institute of Business Administration

BangkokBizNews, July 24, 2009NPS Photo

what is digimarketing?

Digital Marketing, digimarketing, is the evolution of marketing.“It happens when the majority, or totality, of a company’s marketing uses digital channels.

…the future is already here. It's just not very evenly distributed. William

Gibson

“

opportunity1

digital media2

difference3

2 3

opportunity

1

why a digimarketing opportunity?

under spent

Internet penetration 20091.6 billion +

http://en.wikipedia.org/wiki/Image:Internet_users_en_2007.PNG

www.internetworldstats.com/

Source:Neo@Ogilvy

% Advertising Dollars Spent Online

% Consumer Time Spent Online

marketing lag

2003 2004 2005 2006 2007 2008

-5%

0%

5%

10%

15%

20%

25%

30%

Technology/Internet Trends, Mary Meeker , presentation at Web 2.0 Summit, Nov 5 2008,

> Top 10 Developed

MarketsUSA, Japan, Germany, UK, France,

Italy, Spain, Canada, S Korea, Australia

Top 10 Emerging Markets

Brazil, Russia, India, China, Mexico, Turkey, Indonesia, Iran,

Poland, Saudi Arabia

Internet users, end 2008

Thailand: 13.5m 21%Bangkok:

Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008

biz decision-makers 80%top management 93%

www.internetworldstats.com/stats3.htm#asia

Media use, hours/week, upmarket adults, Bangkok,

Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008

19TV

Magazines 5

1.1%

Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook

Newspapers 5

14Internet (excl. email)hours/week

% of total mktg spend Thailand,

200818%

6%

54%

Media use, hours/week, upmarket adults, Bangkok,

Source: BDM, Top management Synovate PAX Q3 2007-Q2 2008; internet access Truehits & NECTEC Thailand Internet Penetration 2008

25-34 years old,

1.1%

Sources: Media consumption Synovate PAX Q3 2007-Q2 2008; Marketing spend GroupM – 2008 Media Outlook

Internet (excl. email) 17

TV 17

Newspapers 4

Magazines 5

Internet (excl. email)hours/week

% of total mktg spend Thailand,

200818%

6%

54%

1.1% of marketing funds get spent on internet

over 5 x more spent on cinema

over 6 x more spent on outdoor

almost 7 x more spent on radio

over 16 x more spent on newspapers

almost 50 x more spent on TVSource: GroupM – 2008 Media Outlook

mis-allocation of resources

why a digimarketing opportunity?

under spent

the future

digital will

predominate

it is the one most adaptable

to change

it is not the strongest of the species that survives… “nor the most intelligent…

easier to learn if you start early…

and you never forget

Source: www.stockphotos.com

why a digimarketing opportunity?

under spent

the future

trackable

From the George Grantham Bain collection at the Library of Congress. According to the library, there are no known restrictions on the publication of these photos. http://en.wikipedia.org/wiki/File:Johnny-Wanamaker2.jpg

John Nelson Wanamaker (1838 –1922)

Half the money I spend on advertising is wasted; the trouble is I don't know which half

“

Best Practices for Optimizing Web Advertising Effectiveness, R E Bruner and M Gluck, Doubleclick May 2006http://www.doubleclick.com/insight/gallery/examples/dolby-ocean.asphttp://www.doubleclick.com/insight/gallery/examples/dolby-storm.asp

Cost per ClickCost per Action

why a digimarketing opportunity?

under spent

the future

trackable

2 3

opportunity

1

digital media

1 32

new media model

how are digital media different?

To find something comparable, you have to go back 500 years to the printing press, the birth of mass media….

“His Space,” Spencer Reiss July 2006

Now it’s the people who are taking control

Technology is shifting power away from the editors, the

publishers, the establishment, the media

elite.

creatives

publishers, editors

bookstores, news stands, TV/radio stations

consumers$$$

eyeballs

expensive channel, production & filtering

modest returns to creators

Traditional Media Model

modest returns to creators

Internet Publication

Internet Distribution

Consumers

Consumers Generate Content

near free channel, free peer filtering

modest returns to creators

New Media Model

Generate Content

Posted Nov 20, 20031 million+ downloads in 6 weeks

read blogs?

Reading blogs % of active internet users (using internet at least every other day), 16-54 years old, March 2008

Power to the People Social Media Tracker, Wave 2, Universal McCann, 2008, surveyed 17,000 internet users (using everyday or every-other-day, 16-54 year-olds) in 29 countries

70%

read at least weekly

50%

Power to the People Social Media Tracker, Wave 2, Universal McCann, 2008, surveyed 17,000 internet users (using everyday or every-other-day, 16-54 year-olds) in 29 countries

Started my own blog % of active internet users 16-54 years old, March 2008

35%21%

write at least weekly

Digital respect

http://perezhilton.com/?p=2601, http://gawker.com/news/welcome-to-the-internet/the-truth-about-perez-hiltons-traffic-276369.php

ComScore, Nielsen NetRatings

Perez Hilton

heard of Twitter?

do you tweet?

http://www.readwriteweb.com/archives/twitter_passes_nyt_wsj_in_unique_visitors.php

www.Twitter.com/DrIanFenwick

Solving customer

problems quickly

Solving customer problems

quickly

http://www.techcrunch.com/2009/07/10/crunchup-live-real-time-business/

Virgin’s perspective about social media isn’t a marketing channel but an engagement channel.We ask our community to answer questions. We love social media.”

20,000+ followers on twitter: most common question: should I fly Virgin?“the community closes the sale”

“

Porter Gale, V-P Marketing Virgin America

new media model

mobile

how are digital media different?

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

World population?Internet users?

Landline phones?

Credit cards?

TV sets?

Mobile phone subscribers?

http://www.itu.int/ITU-D/ict/newslog/Indonesia+Overtakes+Japan+To+Take+Third+Place+In+Asia+Subscriber+Rankings.aspx

Thailand?

1st SMS sent December 3, 1992

how many sent in 2007?

http://news.theage.com.au/asian-consumers-most-prolific-sms-users/20080104-1k5l.html Gartner Research

% sent in Asia Pacific?

how does your website look on mobiles?

new media model

mobile

how are digital media different?

unique

Canon Rebel 3503 years old, #560151117

collect data, drop by drop

personalizecontent

difference

1 2 3

Product

Price

Place

Promotion4 P’s of marketing

Permission

4 P’s of digimarketing

• clear opt-in• easy opt-out• customer-chosen

content & frequency• contextual relevance

claims 10 million downloads

240,000 per week

www.Sanook.com

Permission

Participation• clear opt-in• easy opt-out• customer-chosen

content & frequency• contextual relevance

Source: OgilvyOne, Thailand

MK GAME

belong to a social

networking site?

www.facebook.com www.myspace.com

www.mixi.jp www.cyworld.co.kr

social networks

www.facebook.com www.myspace.com www.mixi.jp

www.cyworld.co.kr 9

132 m unique visitors, June 2008world’s fastest growing social networking site

http://www.techcrunch.com/2008/08/12/facebook-is-not-only-the-worlds-largest-social-network-it-is-also-the-fastest-growing/

Facebook

http://www.briansolis.com/2009/03/twitter-and-social-networks-usher-in/

http://pagedata.insidefacebook.com/

http://www.readwriteweb.com/archives/corporate_blogs_trust.php

How much do you trust the following information sources?

…can’t imagine why

http://www.readwriteweb.com/archives/corporate_blogs_trust.php

"As you know, I am an Apple fanatic, but this deal even has me looking twice. Our computer buyer has put together this!The Blitz ad says $350 but Santa called and challenged him to do better. So now Sam’s is at new price of $345 and an additional $20 case value is included. This is an 8.9" WSVGA Acer CrystalBrite TFT LCD (1024 x 600) with an Intel Atom Processor, 1GB Memory, 120GB Hard Drive and a Crystal Eye Webcam. WOW. That information tells me that Sam’s really put together a great item for our Members! This unit is great for surfing the net, e-mail and is a nice netbook."

http://en.community.dell.com/blogs/direct2dell/

read on-line

reviews?

• #2 driver of purchase decisions (#1: personal advice from friend)

• user reviews more influential than 3rd party reviews1

• 86% read before buying(90% trust) 2

• 70% who read reviews share them with friends, family, or colleagues3

1"Web users and web community," Rubicon Consulting, Inc. October 20082 Kudzu.com survey of 600 users, December 20083Deloitte & Touche, September 2007 All quotes from www.bazaarvoice.com/industryStats.html

62% of brand-related talk features products in a positive light

< 1% feature products negatively

www.imediaconnection.com/content/13386.asp

do you know what people say

about you?

www.serph.comwww.monitter.com http://spy.appspot.com www.blogpulse.com

Permission

Participation

Profile• opportunities to

review, • to comment, • to tag • to upload• to engage• social CRM

4 P’s of digimarketing

Permission

Participation

Profile

Personalization• collect data, quizes, games• drop by drop• build participant

insights • link to physical

channels

4 P’s of digimarketing

opportunity1

digital media2

difference3

www.slideshare.net/ian.fenwickwww.twitter.com/DrIanFenwickwww.DigiMarketingNow.com