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/
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