Web 2.0 Mike Moran

© 2008 Mike Moran

!"#$%!&'()

***+,"#$,&'()+-&,

Marketing 2.0: How the Web Changes theOld Marketing Rules

Mike Moran

February, 2008

2

!"#$%!&'()

© 2008 Mike Moran

The good old days in marketing

! The best creative folks came up with agreat message for a mass market

! We tested it against focus groups

! We pushed it out there—over and over again

! We hoped they’d buy, but weren’t sure they did

Can’t Beat the

Real Thing

Coke adds life

I'd like to buy the world a Coke

Coke is it!

It’s the real thing

3

!"#$%!&'()

© 2008 Mike Moran

The good new days in Web marketing

! You can target even the smallest group

! You can measure the results of everything you do

! You must change your message in response to what your customers:

! Say (comments, blogs, product ratings)

! Do (search, purchases, page views)

4

!"#$%!&'()

© 2008 Mike Moran

The times they are a-changin’

! TV, radio, and print are all laggingthe Web, especially with youngerconsumers

! Moreover, the media shift is also a change from passive reception to interaction

UK Web usage overtakes TV viewing

164 Web minutes per day vs. 148 TV minutes

Source: Google survey March 2006

Japan Has 59% of All Mobile Web Users

Source: Univeristy of Japan survey 2005

5

!"#$%!&'()

© 2008 Mike Moran

The Web rewards pull over push

! You don’t target markets with a message the same way on the Web

! More often, markets have to find you, or your customer must give you permission:

! Search

! Opt-in e-mail

! Subscribe to blogs

! But even tiny markets can be reached

6

!"#$%!&'()

© 2008 Mike Moran

Isn’t Web Marketing simple?

! It’s dizzying

! And it keeps changing

! Faster and faster

! How do you cope?

7

!"#$%!&'()

© 2008 Mike Moran

Remember, it’s still marketing

1. You need to target your market

2. Understand what they care about

3. And connect with your message

If you do:

! You improve your image

! And you drive sales

8

!"#$%!&'()

© 2008 Mike Moran

The difference is how you do it

! Time was that marketing was risky

! Your job was to remove as much of the risk as possible

! But Web marketingrewards experimentsrather than deepplanning

! Are you feeling stuck?

9

!"#$%!&'()

© 2008 Mike Moran

Attract

10

!"#$%!&'()

© 2008 Mike Moran

Both organic and paid search offer opportunities

! With paid, you bid what you’ll pay for each click

! Organic is the search engine’s best match

Paid Search

Organic Search

11

!"#$%!&'()

© 2008 Mike Moran

Social media marketing is new wine in old bottles

! Growing out of search marketing, and public relations before that

! Social media marketing is any way you can get attention for your message using people connected to the Internet

People + message + Internet = social media marketing

12

!"#$%!&'()

© 2008 Mike Moran

Content-based social media marketing

! Focuses on the content to be posted and passed around: blogs, videos, photos, news stories, podcasts

! Or bookmarks to the content

! Feeds viral marketing

Content sites

Bookmarking sites

13

!"#$%!&'()

© 2008 Mike Moran

Personality-based social media marketing

! Consumer companies create character profiles, but may not be the best marketing for IT companies

! IT consultants create professional profiles

14

!"#$%!&'()

© 2008 Mike Moran

Interest-based social media marketing

! Communities form around topics of interest, such as message boards and specialty search engines

! IT marketers must get into these conversations

! Maybe social bookmarking sites fit into this category, too

15

!"#$%!&'()

© 2008 Mike Moran

Fantasy-based social media marketing

! Virtual worlds, inhabited by avatars, allow fantasy lives that marketers wish to be part of—Apple, IBM, and other companies already play

! Kids have their worlds, too, but IT marketers can safely ignore them

16

!"#$%!&'()

© 2008 Mike Moran

Social media marketing can be planned

! Choose interesting topics for your stories—just like good old public relations

! Use good titles and descriptions—just like search marketing

! Make it easy to bookmark, unless you think that’s cheesy

<title>

17

!"#$%!&'()

© 2008 Mike Moran

Except when it can’t be planned

Sometimes you just need to react to your good fortune

18

!"#$%!&'()

© 2008 Mike Moran

Remember that social media uses a community

! Get to know the community

! Give back to the community

! Let the community spread your word

! You can’t force it

It Takes a Village

19

!"#$%!&'()

© 2008 Mike Moran

Listen

20

!"#$%!&'()

© 2008 Mike Moran

Web 2.0 now makes marketing a conversation

! Readers comment on your blogs

! They change your wikis

! The create blogs of their own

! They create “hate” sites if theydon’t like you

! They produce mashups of your content and functions

Web 1.0 users were consumersWeb 2.0 users are participants

21

!"#$%!&'()

© 2008 Mike Moran

Putting customers in control

! Manufacturers are beginning to allow customers to rate their products and provide written reviews—right on the manufacturer’s site

! Customers are going to look for reviews before buying anyway

! Why not keep those customers on your site?

22

!"#$%!&'()

© 2008 Mike Moran

Marketers must give up message control

! We don’t control the message

! The message is changed, rebutted, and misconstrued by ouraudience

! We must modify whatwe say in response

! And, the messagecrosses country borders

23

!"#$%!&'()

© 2008 Mike Moran

The Three Rs of Marketing 2.0

!Real No more of the old marketing hype.Tell the truth. Admit your mistakes.

!Relevant You can’t interrupt people anymore.You must have what they want.

!Responsive Marketing is no longera monologue.You must answeryour customers.

24

!"#$%!&'()

© 2008 Mike Moran

What if you’re not real? Customers ignore you.

!Hype-laden prose is a holdover from print—it doesn’t persuade Web customers

!Some companies have been caught creating flogs:

! Wal-Mart

! Sony

25

!"#$%!&'()

© 2008 Mike Moran

What if you’re not relevant? Google ignores you.

Search marketing yields the lowest cost per lead (and the most qualified

leads)

So that’s where the money is going (and this chart

shows only paidsearch fees)

26

!"#$%!&'()

© 2008 Mike Moran

And if you’re unresponsive? Customers flame you.

! Accept comments and trackbacks on your blogs

! Allow your products to be rated and reviewed

! Staff your efforts with enough people to respond

27

!"#$%!&'()

© 2008 Mike Moran

Watch

28

!"#$%!&'()

© 2008 Mike Moran

Imagine a catalog marketer who said to the boss…

! I shipped February’s catalog on time

! And under budget

! Customers like it

! And it looks beautiful

! Wanna see it?

But that’s all we say about our Web sites—where are the metrics?

29

!"#$%!&'()

© 2008 Mike Moran

How can you drive demand for your products?

10Conversions

1%Conversion Rate

1000Visitors

Base

30

!"#$%!&'()

© 2008 Mike Moran

How can you drive demand for your products?

2010Conversions

2%1%Conversion Rate

10001000Visitors

Increase your conversion rate

Base

31

!"#$%!&'()

© 2008 Mike Moran

How can you drive demand for your products?

202010Conversions

1%2%1%Conversion Rate

200010001000Visitors

Increase your conversion rate Increase your

traffic

Base

32

!"#$%!&'()

© 2008 Mike Moran

How can you drive demand for your products?

40202010Conversions

2%1%2%1%Conversion Rate

2000200010001000Visitors

Increase your conversion rate Increase your

traffic

Or both

Base

33

!"#$%!&'()

© 2008 Mike Moran

What are your conversions?

!Online sales

! Find a store

! Find a dealer

! Find a partner

!Phone call

!Affiliate link

! Download a white paper

! Fill out a contact form

34

!"#$%!&'()

© 2008 Mike Moran

What is your Web Conversion cycle? For your site?

Learn

Buy

Shop

Use

Get

Land

Some sites lead to offline activity

Online PC Sales?

Land

Consulting?

Le

Learn

EngageSelect

Collabora

te

35

!"#$%!&'()

© 2008 Mike Moran

Use your cycle to measure conversion value

! Finding the right product page puts the visitor in the “Learn” stage.

! How many customers that view a product page put items in their carts?

! And how many check out?

! Multiply by your average revenue and you have the impact on revenue.

Learn

Buy

Shop

Use

Get

Land

Increasing the success rate at any stage increases the overall conversion rate

36

!"#$%!&'()

© 2008 Mike Moran

How do you track offline conversions to the Web?

! The easiest way is for you to contact the customer

! If the customer switches channels, entice the customer to:

! Print the product’s specifications to bring to the dealer

! Print a coupon to present at the retailer

! Call a special phone number

37

!"#$%!&'()

© 2008 Mike Moran

Which metrics matter?

! Impressions: Did they see it? E-mail opened? Ad displayed? Document shown? Blog entry read?

! Selections: Did they choose it? Click throughs? Mouse over?

! Conversions: Did they buy it? Download? Call?

38

!"#$%!&'()

© 2008 Mike Moran

Should the shopping cart be on the left or right?

A/B testing decides

39

!"#$%!&'()

© 2008 Mike Moran

Respond to your customers

! Change your products

! Change your content

! Change your prices

! Change your policies

! Change your experience

! Then, change them again

Customers vote with their mice

Learn

Buy

Shop

Use

Get

Which changes increase your conversions?

40

!"#$%!&'()

© 2008 Mike Moran

Respond to the world

! When the public complains, change

! Math textbook publishers ignored criticism by mathematicians and parents and had their books removed from state curricula

! Pharmaceutical firms ignored safety concerns and had their drugs later withdrawn by the FDA

! The public is now part of marketing—environment, immigration, stockholders—remember that you are doing everything in public now

! It’s no longer just a problem for the public relations and media contacts

41

!"#$%!&'()

© 2008 Mike Moran

Do it wrong quickly and then fix it

! Instead of killing ourselves to plan exactly the right thing that we can execute in every country for the next two years…

! …Do it wrong quickly, and then fix it

! Let the market tell youwhat works and what doesn’t

! And then quickly do it better

Listen, learn, and adjust

42

!"#$%!&'()

© 2008 Mike Moran

Read all about it! “Buy this book, read it, and then

read it again.”--Chris Sherman, Search Engine Watch

! Updated at each printing

www.mikemoran.com

!"#$%#&'("$

)&'*#+,-.$/#%+$%#00#'

For more information about the books, and for the free Biznology newsletter and blog:

Available now

! “Great book.”--Robert Scoble, Scoblizer blog

! “Act now and read

it.”--Bryan Eisenberg, Author of #1 best seller Waiting for Your Cat to Bark?