The search for the optimal digital structure

Toon Diependaele

6th of June 2006

Introduction

Can anybody hear me– A view on the current marketing field

The new reality– Quick and simple answers

How do we respond– The change management

The view on a possible organization

Can anybody hear me ?

Can anybody hear me ? The touchpoints

breakfast commuting time at work back home weekend

RadioNewspaperTV

PostersRadioNewspapersMobilePDA

WebEmailMobileRadio

MailWebConsoleDVDMobileEmailTV

PostersPOSWebEmail

Can anybody hear me ? The consumption

We spend 5% more time consuming media today than we did five years ago

In that time, the number of commercial messages we are exposed to on a daily basis has increased 47%

Source: Henley Centre

Can anybody hear me: the brand perception

6% of a newspaper’s “readers” notice the average display ad.

6% of a station’s “listeners” are able to spontaneously recall a heavy weight radio campaign.

18% of admitted “audience” see no cinema advertising.

25% of people who have “seen” a poster 14 times do not recognize it when visually prompted.

Sources: Newspaper Society, RAB, Carlton Screen, POSTAR

Can anybody hear me: Life after the 30 sec spot.

32,7

25,0

0

5

10

15

20

25

30

35

40

45

50

55

1999 2001

% B

uys

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vere

d' b

y ad

exp

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TV sales effect

+3.9%+5.9%

Source: tvSpan

Can anybody hear me: the internet

Total European Internet Penetration

0%

10%

20%

30%

40%

50%

60%

70%

80%

2000 2001 2002 2003 2004 2005 2006

Source: Forrester

– Current European internet penetration ranges from 20% - 60%

– Forecasts for 2006 range from 60% to 70%

The new reality

The multi channel consequence: consumer control

More options demand more active choices: whether they like it or not

Consumers are sophisticated editors of media channels & brand messages: they create the messages ….

They only take notice when something is relevant and engaging

Once engaged, they are willing to give their time to brands – in return for reward

From passive media consumption to active media participation

Multi-channel consumers & multi-channel consumption

People aren’t just consuming media across multiple channels…they’re doing business

From one way to many to many pro-active communication

Need for speed

Speed:– users will not wait more than 30 seconds for a web site to load.

Loyalty– almost 90 percent of users will simply move to a rival site if their

original destination is unavailable or not clear.

David Neal, IT Week 28 Apr 2006

Technology is a must

Recent past: technology for technology's sake

Today: – Users' expectations are high– Need for enriching sites with technology that makes them easier to

use, more attractive and [easier to] syndicate

75% of online campaigns are hit by site failures2 (Scivisum)

Phil Muncaster, IT Week 11 May 2006

Customer expectation

Businesses must be consumer-centric to surviveMarketers must understand their consumers’ media preferences…

…and make media selection on this basis

Businesses must understand their consumers’ channel preferences……and be open for business within these channels

The internet is a key consumer channel

The current answer

The facts

Sir Martin Sorrell: In no position to react properly to the rise of digital media.1

Digital marketing is being recuperated by marketing to legitimate the multi-channel strategy , but they miss the technology knowledge.

Life after the 30 second spot.

Philip Buxton – Revolution blog

Differentiation

Phase 1Disorganization

Sony Ericsson global web presence

launched by JV team, before

organizational structure established

The Sony Ericsson example

Phase 2Legacy organization

Legacy structure from Ericsson established:

-Global marketing (main internet stakeholder)

- SMO (technical solutions to support

web initiatives

Phase 3Birth of the DigitalMarketingorganization

Old SMO and web team from global

marketing are combined into one

organization for centralized digital

marketing.

Sony Ericsson was one of the first global

companies to pioneer this

organizational design - but now many

others are following suit (Nike, BBC,

Canon…)

Phase 4A new era of DigitalMarketing (in development)

Going forward, the challenge is to

achieve more and better integration.

Establish strategic and tactical functions

that work across both (traditionally)

marketing and technical functions.

A structure for success

Structure for Digital excellence

The way in which digital activity fits into the organization, and

communicates with it, directly affects the success.

If Web development isn’t driven by an alignment of sustainable technology, user-driven content and business-driven goals, the corporate digital presence will either fail to meet your business goals, be troubled by expensive technology challenges or simply alienate your core users

Losability vs Usability, G>A> Buchholz, July 11 2005Digital Web Magazine

Basic principles

Create close integration in one team between marketing and technology to address the core target audiences needs.

– Support for marketing programs towards End consumers

– Support for marketing initiatives towards customers (dealers, retailers, fleets, …)

Create a structure where decision on strategy, budget and platform are taken by one accountable team.

Make a distinction between Critical Digital objectives and platform overall objectives

B2C & B2B

DigitalMarketing

IS/IT Brand

Key roles and responsibilities

Steering committee– The overall corporate strategy for Digital covering Platform and Marketing for

Internet and Extranet is defined and signed off by the “Steering Committee”.

IS/IT– Owns the platform – Manage the platform suppliers and vendors

Marketing– Owns the overall brand strategy

Digital marketing– Develop and create and owns the Digital Marketing strategy – Interface in project development towards brands.

Specific roles and responsibilities

Digital marketing – market management– Plan and create or co-ordinate digital materials – Develop and implement digital marketing plans– Education of local stakeholders through brand channels – Solicit/gather demand & change requests

Digital marketing – service management– Plan, execute & own Content management & co-ordination– Translation management– Reporting and statistics provisioning

Digital marketing – project management & development– Execute & own development projects of agreed requirements– Deliver within agreed budget, on-time and on-quality