© 2008 Mike Moran

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Marketing 2.0: How the Web Changes theOld Marketing Rules

Mike Moran

February, 2008

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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

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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)

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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

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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

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Isn’t Web Marketing simple?

! It’s dizzying

! And it keeps changing

! Faster and faster

! How do you cope?

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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

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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?

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Attract

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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

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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

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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

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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

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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

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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

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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>

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Except when it can’t be planned

Sometimes you just need to react to your good fortune

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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

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Listen

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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

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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?

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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

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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.

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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

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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)

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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

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Watch

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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?

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How can you drive demand for your products?

10Conversions

1%Conversion Rate

1000Visitors

Base

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How can you drive demand for your products?

2010Conversions

2%1%Conversion Rate

10001000Visitors

Increase your conversion rate

Base

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How can you drive demand for your products?

202010Conversions

1%2%1%Conversion Rate

200010001000Visitors

Increase your conversion rate Increase your

traffic

Base

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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

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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

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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

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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

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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

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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?

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Should the shopping cart be on the left or right?

A/B testing decides

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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?

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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

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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

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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

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

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