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Three Key StrategiesThree Key Strategies

Rex Briggs, Principal Marketing EvolutionRex Briggs, Principal Marketing Evolution

rex@marketingevolution.comrex@marketingevolution.com

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1995 1996 1997 1998 1999 2000 2001 2002 2003

Penetration

Consumer media usage has shifted Consumer media usage has shifted dramatically in the past few yearsdramatically in the past few years

Significant growth in the numbers using the Significant growth in the numbers using the InternetInternet

Substantial increase in percent of time spent Substantial increase in percent of time spent onlineonline

Arguments for updating the mixArguments for updating the mix

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““When I point, When I point,

look where I point, look where I point,

not at my not at my finger.”finger.”

Warren McCulloch, noted neurophysiologist Warren McCulloch, noted neurophysiologist and father of computational neuroscienceand father of computational neuroscience

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These shifts These shifts

change the effectivenesschange the effectiveness

of the old marketing mixof the old marketing mix

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Three insightsThree insights that reveal that reveal

effectiveeffective and and cost efficientcost efficient approaches to Online Marketingapproaches to Online Marketing

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Being Online is about bringing Being Online is about bringing your brand message to consumers…your brand message to consumers…

Insight #1Insight #1

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The power of being reaching out to consumersThe power of being reaching out to consumers

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Engage the User in a Meaningful WayEngage the User in a Meaningful Way

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Sell to Decision MakerSell to Decision Maker

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Being Online is about bringing Being Online is about bringing your brand message to consumers…your brand message to consumers…

Leverage advertising, sponsorships, Leverage advertising, sponsorships, email and other outbound effortsemail and other outbound efforts

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Economics of Websites versus sponsorshipsEconomics of Websites versus sponsorships

Several in-depth economic analysis of Several in-depth economic analysis of website vs. sponsorships have revealed a website vs. sponsorships have revealed a powerful cost advantage to sponsorships powerful cost advantage to sponsorships strategiesstrategies

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Economics of influencing brand imageEconomics of influencing brand imageWebsite versus advertising Website versus advertising

Sponsorship ReachStrategy

360* people w/positive

brand association

10,000

3.6pt increase 500 Clickthroughs

to website*

10,000

38 people w/positive brand

association

7.5pt increase

5% CTR

ClickthroughTypical Case

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Online advertisingOnline advertising

Online ads increased key perceptions by an Online ads increased key perceptions by an average of 2.7 pointsaverage of 2.7 points

Novell

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Comparison of website versus ad strategyComparison of website versus ad strategy

Upfront investment: Upfront investment: • Under $10,000Under $10,000Media investment: Media investment: • $990,000 ($50 CPM freq 4)$990,000 ($50 CPM freq 4)

Reach potential: 70% (5,000,000)Reach potential: 70% (5,000,000)

Effect: 2.7pt gain (135,000 people)Effect: 2.7pt gain (135,000 people)

Cost per person effected $7.40Cost per person effected $7.40

Upfront investment: Upfront investment: • Approx $1,500,000Approx $1,500,000Media investment:Media investment:• $500,000 ($50 CPM freq 4)$500,000 ($50 CPM freq 4)

Website reach : 5% (300,000) Website reach : 5% (300,000)

Effect: 7.2pt. gain (21,600 people) Effect: 7.2pt. gain (21,600 people)

Cost per person effected $92.60Cost per person effected $92.60

Target: 7 million IT decision makers/influencers for corporate servers

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Sponsorships are typically 3 to 5x more Sponsorships are typically 3 to 5x more cost efficient compared to clickthrough cost efficient compared to clickthrough visits to your website CRM approachvisits to your website CRM approach

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Sponsorships work better Sponsorships work better

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The key to optimizing sponsorship value is The key to optimizing sponsorship value is more than brand linked experience…more than brand linked experience…

… …it is information gathering it is information gathering for for re-marketingre-marketing

Insight #2Insight #2

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Brand awareness increased Brand awareness increased 28% and intent to purchase 28% and intent to purchase increased 5% increased 5% (Source: E-valuations, 2000)(Source: E-valuations, 2000)

Web event case exampleWeb event case example

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Loyalty program through a portalLoyalty program through a portal

For existing customers, loyalty For existing customers, loyalty programs can impact repeat programs can impact repeat purchases and brand loyaltypurchases and brand loyalty

Leverage existing customer Leverage existing customer databases to reward loyal databases to reward loyal customerscustomers

Personalized sites, product tie-Personalized sites, product tie-ins (frequent participants in ins (frequent participants in sweepstakes, contests and sweepstakes, contests and programs earn merchandise)programs earn merchandise)

Track ROI through number of Track ROI through number of repeat visits, increase in offline repeat visits, increase in offline purchases, opinions through purchases, opinions through online surveysonline surveys

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One critique:Put your logo where it is visible

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“Put your logo where it is MOST visible”

But, did they go too far?

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Coca-ColaCoca-Cola

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Key best practicesKey best practices

Tie Sponsorship programs to your Online Tie Sponsorship programs to your Online advertising serveradvertising server

These programs can in and of themselves drive sales These programs can in and of themselves drive sales volume…volume…

But they are also a source for valuable information about key But they are also a source for valuable information about key consumersconsumers

Set-up the program so that you can segment your Set-up the program so that you can segment your consumers (by product type, and other relevant consumers (by product type, and other relevant dimension).dimension).

Link the ad server on the segmentation page so that all Link the ad server on the segmentation page so that all advertising on other web pages can recognize the type of advertising on other web pages can recognize the type of consumer, and send the appropriate advertisementconsumer, and send the appropriate advertisement

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Insight #2Insight #2

Use sponsorships to learn about your Use sponsorships to learn about your consumers AND remarket to key targetsconsumers AND remarket to key targets

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Loyalty Program TargetingLoyalty Program Targeting

consumer

Web Browser

Ad Server

Web Site

Coors Universal Coors Universal Segment CookieSegment Cookie

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Time passesTime passes

Over the next several months, Coors can target based on segment

April May June July August September October November December

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Using Loyalty programs to target the right Using Loyalty programs to target the right consumersconsumers

consumer

Web Page

PUT AD HERE

Web Browser Web Site

Ad Server

The Twins miss youThe Twins miss youCoors Light Coors Light

Segment CookieSegment Cookie

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Using Loyalty programs to target the right Using Loyalty programs to target the right consumersconsumers

By using the loyalty program to segment By using the loyalty program to segment consumers (and link to ad server) you consumers (and link to ad server) you can…can…

Deliver the right ad message, to the right Deliver the right ad message, to the right consumerconsumer

Thus maximizing the value of the advertising Thus maximizing the value of the advertising opportunity to get the MVC the relevant messageopportunity to get the MVC the relevant message

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Timing your communication to you Timing your communication to you MVC can will produce better MVC can will produce better resultsresults

Insight #3Insight #3

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Surround the consumer with your messageSurround the consumer with your message

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Time of day targetingTime of day targeting

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Purchase preference is influenced by time of dayPurchase preference is influenced by time of day

Lunch

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The nature of your communication may The nature of your communication may change over the course of the daychange over the course of the day

The products you promote may vary over The products you promote may vary over the course of the daythe course of the day

Leverage Online’s natural dayparting Leverage Online’s natural dayparting strengthsstrengths

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Closing thought from XMOSClosing thought from XMOS

Have you re-evaluated your Have you re-evaluated your marketing mix?marketing mix?

Form a working groupForm a working groupInclude key brand, agency and measurement team Include key brand, agency and measurement team membersmembers

1.1. Examine how online fits into delivering coverage to Examine how online fits into delivering coverage to your targetyour target

2.2. Measuring Online side-by-side with Offline in terms Measuring Online side-by-side with Offline in terms of relative effectivenessof relative effectiveness

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““When I point, When I point,

look where I point, look where I point,

not at my not at my finger.”finger.”

Warren McCulloch, noted neurophysiologist Warren McCulloch, noted neurophysiologist and father of computational neuroscienceand father of computational neuroscience

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TEST, TEST, LEARN, LEARN,

EVOLVE.EVOLVE.

rex@marketingevolution.comrex@marketingevolution.com

ConclusionConclusion