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America Online
Getting Results for Partners
Why Partner With AOL?
• The purpose of this presentation is: To show how AOL’s
unparalleled reach, compelling content, and unmatched online experience can create innovative, efficient solutions to your marketing and advertising problems
To help you make your business more profitable
AOL’s Value Proposition
America Online is committed to developing innovative solutions that create consumer value in cooperation with our partners in a way that delivers partner-defined results and jointly builds our mutual businesses.
Marketers’ Challenges• To maximize the number
of customer touch points and interactions in the new, fragmented media environment.
• To differentiate from competitors and create a clear competitive advantage
• To increase customers’ loyalty by managing relationships more effectively
• To increase profits and profit margins in today’s economy
AOL’s Place in the New Media Environment
• AOL is the largest ISP in the world.
• It is not a portal.• It is not the
Internet.– Half the traffic in
the US to the Internet goes through AOL’s servers.
– AOL connects advertisers to consumers with compelling content.
What is AOL?• The most popular,
informative content in cyberspace:– The AOL Service--20
Channels– AOL Web Properties
group (CompuServe, Netscape, MovieFone, ICQ, AIM, MapQuest)
– Over 150 content partners such as eBay, Amazon.com, Monster.com, and Oxygen
What is AOL?– AOL Time Warner
Web content such as CNN, People, Time, Fortune, and Warner Bros.
– Over 2000 advertisers that provide opportunities to buy the latest fashions, to get big discounts, to enter contests, and to find comparative pricing information
• In a safe, secure environment
Maximizing Touch Points in
the New Media Environment• AOL has unparalleled
reach. AOL plus the AOL Time Warner Web sites reach 82% of all online users each month1.– With 58% of
American households online, the Interactive medium has critical mass2
– AOL has 31 million subscribers, 62 million users3.
Source: 1. Media Metrix Digital Media Report, September 2001, Home/Work Combined 2. Jupiter Communications, Spring 2000 3. AOL Internal Data
82% Reach
1992 1994 1996 1998 2000 Sep-01
32,000,000
26,000,000
15,000,000
7,000,000
900,000150,000
Source: Circulation figures from ABC and BPA, Six month averages ending 9/30/00 for newspapers & 12/31/00 for magazines
AOL Outreaches The Top Seven
National News Providers Combined
Thirteen
Benefits of AOL’s Reach
• A partner can maximize reach online with just one campaign on AOL.– Considering the
diminishing marginal utility of adding more and more reach in any one medium, you can add reach very efficiently on AOL.
– Adding AOL can moderate the loss of reach in other media due to media fragmentation.
Source: AOL Internal Data, Media Mix Presentation
Compelling, Valuable Content
• Consumers subscribe to AOL content, which makes it more credible and valuable to them (and, thus, to marketers).
• AOL updates the service and content continually by listening to consumers.– AOL 7.0 based on
extensive research and member feedback.
Benefits of Compelling Content
• Compelling content surrounds advertising and lends it credibility and believability.– AOL understands
better than anyone in cyberspace how to keep people attentive.
– An average of over an hour a day.
Question?
• What would you do if you had your best customers’ rapt attention for over an hour a day?– AOL has more
experience in capturing their attention and holding it than anyone in cyberspace.
– We will answer this question with you.
Keeping Members’ Attention
• AOL and the AOL Family of Brands deliver a highly targeted, attentive, upscale, responsive audience.– AOL content keeps
members inside AOL (76% of time spent on AOL, 24% on the Web).
– AOL’s safe, easy-to-use environment encourages people to shop online--they shop ‘til they drop their mouses.
Source: Media Metrix Digital Media Report, August 2001, Home/Work Combined
Benefits of Targeting and Time Spent
• AOL’s pin-point targeting and long online sessions offer a greater opportunity to reach qualified buyers and differentiate (both in terms of direct marketing and branding).
– Before, During, and After the sale.
Volvo & AOL:A Successful Partnership
Volvo’s Challenges: – To launch the new S60 model online without the support
of additional media and to work with a limited budgetAOL’s Solution:
– Welcome Screen promotion, member sweepstakes, special member perks
• Optimize AOL promotional resources to generate awareness of the S60
• Drive interest in the S60 through creative incentives and special offers exclusive to AOL members
– Bluestreak rich media creative execution to get attention and create excitement
– Identify qualified prospects and gather information about those who requested S60 brochure information
Voted “Best Online Campaign”By AdWeek/MediaWeek
• More than 1 million unique users visited the Volvo S60 site.
• Nearly 500,000 users entered sweepstakes enabling Volvo to establish a one-to-one marketing dialogue with consumers.
• Delivered over 27,000 sales leads to dealers -- consumers who configured a vehicle online and requested a quote.
• 13,000 AOL members have requested Member Packages.
• March ‘01- second best introduction ever -- and only online
Results
During the Sale
Information
• Brochures• Sales People• Print/editorial• Online
The Sale
•Store•Telephone•Catalogue•Online
Before the Sale
• TV Ads• Magazines• Online
Branding Post SaleCRM
After the Sale
The Marketing Cycle Today
•Online ( Manage relationships, services, and warranties. Upsell)Online is the only medium that can deliver
differentiation opportunities in all four stages of the marketing cycle.
Information The Sale Branding Post-SaleCRM
Online Connects and Complements Other
Media
• Banners• Content
Integration• Promotions• Endorseme
nts
• Web sites• E-mail• Content• Search
• Shop@AOL• Interactive
Banners• Drive traffic
to retail
• Better backend management
• Customer self-service
• Live-help (Instant Messaging)
• Targeted database marketing
Before the Sale
During the SaleAfter the Sale
Benefits of Innovation
• You can partner with AOL and be on the cusp of and take advantage of innovations and leave your competitors behind.
• You can take advantage of AOL’s Partner Central to learn what has worked for other companies.
Your AOL salesperson will show you many success stories relevant to your
industry.
Experience• AOL has the experience,
commitment, and structure to help you manage your relationship with customers.– Experience
• 12 years of online experience.
• Five years experience selling and making advertising work.
• Has had as many successes and failures to learn from.
AOL 5.0
AOL 6.0
AOL 7.0
Commitment• Commitment - AOL’s
commitment to its members and partners is legendary.– Half of AOL’s employees
are in Member Services.– Over 200 of IM’s
employees are in Account Services -- “the gold standard”of the Interactive industry -- all dedicated to making partners’ deals work.
• IM’s #1 goal is “to get results for partners.”
Structure
• Structure - AOL is structured to understand your business and help you serve your customers better.
• IM Category Sales• Account Services• AIS Vertical Market teams
(programming)• Brand and Partner
Marketing• All focused on helping you
connect to your customers - Before, During, and After the sale.
Benefits of Experience, Commitment and
Structure • AOL can help you craft
creative, high-impact solutions tailored just for you (branded or unbranded).
• AOL has the research capability and resources to validate your online campaign’s effectiveness (DMS).
• We have the experience, commitment, and structure to get the results that you define.
How to Increase Revenue
• Increase market share though innovative, differentiating advertising and promotions (branding).
• Educate the market about new products or new uses of an old products (information).
• Sell more online.• Drive traffic offline.• CRM - Upsell
And Lower Expenses
• Save money by selling online.– Less expensive than
stores– Less expensive than
catalogues– Less expensive than
on the telephone (call in or call out)
– Customers do the work online.
And Lower Expenses
• Save money on promotion and advertising.– E-mails less expensive
than direct mail and FSIs
– Online more efficient than TV, magazines (but perfect in combination with them).
– Adding reach is more efficient on AOL.
Put Interactive in Your Media Mix
• A carefully planned combination of targeted media can get results for you for less money.
• Media Mentor data shows 11% of media time is spent online.
• Put Interactive in your advertising and promotion media plans.
Source: SRI’s Media Mentor, Spring 2001
TV51%
Radio30%
Interactive11%
Newspapers5%
Magazines3%
Time Spent per Media:
Maintain Market Share
• In today’s economy effective, differentiating advertising and promotion can not only maintain but also increase your market share now and five years out as your competitors cut back.
• Take advantage of current Interactive advertising efficiencies now.
AOL Provides Many Solutions
• Advertising & Direct Marketing– Deliver brand recall better than TV and
magazines– Increase reach in combination with TV and
magazines
• Strategic Relationships– Unique Interactive solutions to customer
problems• Inbound logistics•Operations•Outbound logistics•After-sales service
AOL Provides Many Solutions
• Large, global cross-platform solutions– Road-blocks, e.g.– AOL International
• Local/Regional cross-platform solutions– Local– National spot
• Transforming solutions– Unique solutions marshalling all of assets of
AOL Time Warner to do business in a new way.•No lines for Harry Potter, e.g
How to and Not to Use the
Interactive Medium• See Michael
Porter’s HBR article, “Strategy and the Internet.”
• See Rosbeth Moss Kantor’s HBR article, “Ten Major Mistakes of Wanna-dots.”
Summary
• AOL can maximize your reach and touch points with qualified buyers.
• AOL’s expertise enables us to create and validate innovative solutions that give partners a clear, differential competitive advantage.
• AOL’s experience, commitment, and structure can help you increase your customers’ loyalty.
Next Steps
• Give us your commitment to pursue a relationship.
• Tell us who in your company will be our contacts to gather sufficient information so we can begin to craft customized, innovative, efficient solutions for you.
• Give us a date when we can come back to you with some suggested solutions.
Questions?
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