May 2008

DigiMarketingKey Tenets of Digital MarketingKey Tenets of Digital Marketing

From “Perpetual (Digital) Revolution”

Together, hardware and software will be the

catalyst for advances during the next 10 years

that will far exceed changes of the last 30 years.

Mr. Bill Gates, AWSJ, January 25, 2008

Tectonic Shifts

Traditional Media Digital Media

Traditional Media Digital Media

TV IPTV

Radio Digital Radio

Billboards Digital POS

Traditional Media Digital Media

US $455b US $55b

6% 23%

Source: IBM, “Navigating the Media Divide” Study

Traditional Media Digital Media

?

The Cross-Over Point

Traditional Media Digital Media

Why GM Gambled $1.5B On Digital

Over the next three years, General Motors will shift halfof its advertising budget to digital. Will that be enough toget the automobile manufacturer in gear?

Michael Estrin is associate editor at iMediaConnection.

Ongoing Confidence Gap

Source:Neo@Ogilvy

0%

5%

10%

15%

20%

25%

30%

2003 2004 2005 2006 2007 2008 (E)

% Consumer Time Spent Online

% Advertising Dollars Spent Online

The Marketing Confidence Gap

digital will

predominate

Traditional Marketing

DigiMarketing

From “New Media” to the New Mass Media (of One)01

0.9 b PC users

1.3 b internet users

1.3 b landline phones

1.4 b credit cards

1.5 b email boxes (0.8b)

1.5 b TVs

1.8 b active sms users

3. 0b mobile phone subscribers

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

Worldwide Today

New Media Barons

(cc) Lynette Webb, 2006

??

“Radio in My Head”

Yuan Shiao Nan

- Unique address

- Individual user behavior

- Personal settings & preferences

- Two-way – individual direct response

Communities Dominate Brands Business and marketing challenges for the 21st century By Tomi T Ahonen and Alan Moore

Mass Media of One (Addressability)

- Contextual content

From Targets to Participants02

Marketing Algorithm of Reach/Frequency

Engagement Metrics & Planning

From Mass to Personalization(and the Privacy Paradox)03

StressEase and Frequency

Ease and Stress

New RestrictionsUnprecedented Access

Access and Restriction

Tim Berners-Lee, BBC Interview, March 18, 2008:

On personal data:

“It’s mine – you can’t have it. If you want to use it for something, then you have to negotiate with me. I have to agree. I have to understand what I’m getting in return.”

August 4, 2006:

AOL released search records of 650,000 users over a 3-month period, 20 m searches

August 7, 2006:

they removed the file from their site

August 9, 2006:

New York Times identified & interviewed #4417749

August 22, 2006:

AOL Chief Tech Officer & 2 others “left”

September 12 2007: September 12 2007:

Why personalize?

80%want it

Up to

58%will pay

more attention

if they get it!

From Selling to Serving04

From Impressions to New Connections05

QR Codes

Each one of these MOBICODES link to a specific mobile site.

Quick Response (QR) Code for North West Airlines

QR-Codes - MAGGI On-pack Communication

Outside PackageOutside Package

Inside PackageInside Package

11stst weekweek 22ndnd weekweek 33rdrd weekweek

Outside Code to introduce MAGGI Recipe

New Connections

HKIA Program

From Old to New “Physics” of Marketing06

A MAJOR MEDIA REVOLUTION HAS JUST OCCURRED…

Consumers Spent More to Reach Media Than Marketers Spent to Reach Them. For years, the consumer went along with a model of intrusion perpetuated by the networks, advertisers and ad agencies…

The consumer has decided to take over…

Consumers are willing to pay for personalized information and entertainment that fits their interests.

August 23, 2004

Content User Generated

You Tube: 58 Million monthly viewers*

Distribution Power Growing

Leverage Impacted of Viral

Viral video

• Seen by and estimated 500MM people globally

• Equivalent value of $150MM+ in media

X

12 DigiMarketing Shifts

From Traditional To DigiMarketing

1. Viewers………………………………………… Participants

2. Impressions……………………………………. Involvement

3. Broadcast Mindset……………………………. Addressable Mindset

4. Schedule-Driven……………………………….Time-shifted, Borderless

5. Marketer-Driven………………………………..Consumer-Initiated

6. Push Marketing…………………………………Opt-in and Share

7. Traditional Media Planning……………………New Media Planning

8. Managed PR……………………………………Digital Influence

9. Integrated Marketing…………………………..Unified Marketing

10. Data-Blind……………………………………….Data-Driven

11. Post-Campaign………………………………….Real-time

12. Partial ROI...…………………………………….Optimization

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