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IAB Breakfast MC DC Presented at IAB Breakfast 2009
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IAB Breakfast MC DC 09Gianni CooremanInSites Consulting
2InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Internet stats***
Mobile Internet***
Online identity***
Future proof brands***
Emancipated consumers***
Media & advertising***
Search***
Mixed-mode buying
Today’s breakfast menu
3InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Background and methodology
NorthernEurope
EasternEurope
SouthernEurope
WesternEurope
BelgiumN = 2.119
The NetherlandsN = 2.038
FranceN = 2.000
United KingdomN = 2.017
GermanyN = 2.028
SwitzerlandN = 1.996
PolandN = 2.022
RomaniaN = 2.035
HungaryN = 2.010
SpainN = 2.196
ItalyN = 2.086
GreeceN = 1.971
DenmarkN = 1.986
NorwayN = 2.016
SwedenN = 2.081
FinlandN = 2.005
4InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The medium “Internet”
“Size does matter ... and it continues to grow”
5InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Internet penetration > 75%
Internet penetration < 50%
Norway83%
3,1 million
The Netherlands85% - 11,4 million
France61%
31,6 million
UK73%
36,6 millionGermany
69% 48,6 million
Switzerland73%
4,6 million
Italy52%
26,5 million
Spain50%
19 million Greece42%
4 million
Denmark80% - 3,5 million
Sweden82%
6,2 million Finland75%
3,3 million
Poland44%
14 million
Hungary45% - 3,8 million
Romania32% - 5,7 million
Internet penetration 50 - 75%
Belgium66%
5,8 million
228 million European surfers (*)
60% Internet penetration
(*) Countries measured in MC DC 2009Source: MC DC 2009 CATI research and Forrester data
6InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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47%
52% 53%55% 55%
60%63% 64% 65%
67% 68%70% 70%
73%
78%82%
24%
33% 33%
38% 39%
44%48% 48% 49%
53%56% 57% 57%
60%63%
66%
4%7%
11%
17%
23%
28%
35%37%
40%
45%
51%53%
55%58%
60%62%
Oct 00 Apr 01 Oct 01 Apr 02 Oct 02 Apr 03 Oct 03 Apr 04 Oct 04 Apr 05 Oct 05 Apr 06 Oct 06 Apr 07 Jun 08 Jun 09
PC penetration Internet penetration Broadband penetration
5,8 million Belgian surfers66% Internet penetration
Source: MC DC 2009 CATI research (n = 1.134)
7InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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27%33%
39% 42%49%
54% 57% 58%64%
5%
5%
5%5%
4%3%
3%4%
2%
9%
11%
9%9%
8%8%
7%11%
8%
2001 2002 2003 2004 2005 2006 2007 2008 2009
Used in past 2 weeks Used in past month Ever used the Internet
Increasing Internet intensity57% is online 7/7
Source: MC DC 2009 CATI research (n = 1.134)
8InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Internet goes mobile
“And Belgium is already lagging behind”
9InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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9% ever surfed mobile in BelgiumOnly ½ of the European adoption rate
7%
93%
Yes No
8%
92%
Yes No
9%
91%
Yes No
Q: Which of the following mobile phone types do you own and use? (n BE = 2.119, n EU = 32.606)Q: Have you ever surfed on the Internet from another place than your home, work or school using mobile Internet connection on your mobile phone or smartphone?Q: Do you currently have a subscription to use a mobile Internet connection on your mobile phone or smartphone?Source: MC DC 2009 online research
14%
86%
Yes No
18%
82%
Yes No
14%
86%
Yes No
Smartphone adoption Ever surfed mobile Possession data plan
10InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Limited amount of 3G networks ( offered no 3G)
Prohibition of combined sales (until recently)
High subscription fees
Lack of flat rate subscriptions
How did we end up in this situation?
11InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Technological barriers (# platforms | # handsets)
Consumer privacy
High subscription fees
Mind the gap
Challenges for marketers
12InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Mobile web 2009 ... In terms of the user experience quality we observed, it was like stepping into a time machine for a quick trip back to 1998.(Jakob Nielsen, Feb 17th 2009)
13InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Q: How often do you engage in the following Internet activities for personal purposes via your mobile phone or smartphone? (n EU = 7.710)Source: MC DC 2009 online research
Functional & social as killer mobile applications
34%
32%
29%
21%
18%
17%
17%
13%
19%
13%
7%
13%
12%
4%
5%
7%
E-mailing
Searching information
Reading the news
Finding information on products, services, brands, companies or
shops
Using route planners
Chatting or instant messaging (in online chat rooms, on SNS)
Checking other prof iles or status on a social network site
Updating a prof ile or status on a social network site
Europe Belgium
14InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Mobile
PC/laptop
Both
Niche
General news/current affairs
Breaking news
Cultural news
Economic and financial news
Local news
Sports news
Weather
EroticismClothing, fashion, accessories,...
Cooking and recipes
TV programs
Job vacancies
Real estate
Food and drinks, restaurants, bars,...
Shopping, shops,...
Health information
Nearest business or service
Travel information
Tourist / location information you are at or want to travel to
Get directions/navigation
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
30% 35% 40% 45% 50% 55% 60% 65%
Mean all items
Mean all items
Pre
fere
nce
acc
ess
on
mo
bile
ph
on
e
Preference access on PC / laptop
Q: Suppose you have unlimited use of a mobile phone, which device do you prefer to access the following online content? (n EU = 7.710)Source: MC DC 2009 online research
Location based / on-the-go askiller mobile content
15InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The mobile future: augmented reality
16InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Building an online social identity
“To be online or not to be”
17InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Online identity
ONLINE IDENTITY KIND OF ONLINE IDENTITY
54%46%
Yes No
59%
41%
Yes No
Q: Which of the following activities did you perform on the Internet? (n EU = 8.037, n BE= 530) Source: MC DC 2009 online research
45%
21%
10%
5%
53%
15%
10%
3%
I am a member of an online social network
I am an active member of at least
one online discussion board or community
I have my personal website/blog on the
Internet
I have an active prof ile/character in a
virtual world
Europe Belgium
18InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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5 online identity drivers
Social interactions (communicating with others)
Entertainment
Unleashing creativity
Information search (solving problems)
Escapism & de-stressing
19InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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is king
72%
23%
20%
10%
7%
6%
6%
5%
90%
16%
20%
33%
3%
12%
0%
5%
MySpace
Windows Live Spaces
Netlog
Last.fm
Europe Belgium
5%
5%
4%
2%
2%
1%
1%
29%
2%
5%
3%
8%
3%
0%
0%
7%
Bebo
Hyves
Flickr
Skyrock
Plaxo
Friendster
Friendfeed
Other social network
Europe Belgium
Q: On which of the following social networks do you have a personal profile? (n EU = 3.593, n BE= 530) Source: MC DC 2009 online research
72%
23%
20%
10%
7%
6%
6%
5%
90%
16%
20%
33%
3%
12%
0%
5%
MySpace
Windows Live Spaces
Netlog
Last.fm
Europe Belgium
20InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Future of social networks
Strong competition for IM and email
Social search (see further)
Data portability
Post-modern nomads
21InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Building future proof brands
“Social influence marketing”
22InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Can brands exist in social networks?
36%
35%
34%
32%
29%
25%
33%
29%
38%
28%
24%
22%
As a user of a f ree social network I expect to receive
advertising
I don't mind to get news updates on social networks
f rom brands I like
I don't mind that companies create brand/product pages on
social networks
I don't mind that companies advertise on social networks
I don't mind to receive personal messages on social networks
f rom brands I like
I am comfortable with receiving ads on social networks
targeted to me based on the information in my public prof ile
Europe Belgium
Q: To what extent do you agree with the following statements? (n EU = 3.593, n BE= 530) Source: MC DC 2009 online research
23InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Yes, they can...
16%
9%
30%
25%
17%
33%
18%
4%
33%
24%
16%
32%
...created a fan page for a group or organization on a
social network
...created a fan page for a product, brand or company on
a social network
...become a f riend of a company, brand or product on
a social network
...invited f riends to become a f riend of a company, brand or product on a social network
...used an application on your social network that adapts the layout of your page to show your appreciation for a brand
...entered a competition for a brand or product on a social
network
Europe Belgium
Q: Have you ever …? (n EU = 3.593, n BE= 530) Source: MC DC 2009 online research
24InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Brands have emotional value
INTERBRAND 08
(3.5 million fans)
(2.6 million)
(3.2 million)
(3 million)
(2.6 million)
BEST BRANDS FACEBOOK
25InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Social media tips for brands
Attitude change among marketers
Facilitate conversations, ask questions later
Give back to consumers
Social advertising
26InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Examples of social ads
27InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Emancipated consumers
“From shouting to building”
28InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The shouting consumer
POSITIVE EXPERIENCES NEGATIVE EXPERIENCES
51%
27%
15%4%3%
Never 1-2 3-56-10 10+
60%24%
9%3%3%
Never 1-2 3-56-10 10+
61%26%
8%3%2%
Never 1-2 3-56-10 10+
73%
19%
6%1%1%
Never 1-2 3-56-10 10+
Q: In the past 12 months, approximately how many times did you share a positive/negative experience with a product, brand or company on the Internet? (n EU = 8.287, n BE= 556) Source: MC DC 2009 online research
29InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Popular shouting channels
40%
39%
34%
32%
20%
11%
7%
4%
24%
44%
30%
33%
22%
22%
7%
8%
5%
29%
The website of the specif ic product, brand or company
A forum where people talk about a specif ic topic concerning the
product, brand or company
Consumer organization website
A product (price) comparison website
A social network like Facebook, Myspace,...
A news site
My personal blog or website
Other type of websites
I would not voice my experiences on the Internet
Europe Belgium
Q: Which type of websites would you consider using to voice your experiences with a product, brand or company? (n EU = 8.287, n BE= 556) Source: MC DC 2009 online research
30InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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How to deal with negative buzz?
55%
54%
18%
13%
11%
70%
64%
8%
6%
8%
Contact the 'complainer' individually without
communicating on the website
Defend itself by 'officially' reacting on the website
Advertise on that specif ic website
Defend itself by anonymously reacting on that website
Give no reaction at all
Europe Belgium
Q: If consumers post negative experiences with a company on a website, how do you think the company should react? (n EU = 8.287, n BE= 556) Source: MC DC 2009 online research
% top 2 reported
31InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Start building...
58%
58%
54%
51%
58%
60%
44%
45%
Buy more f rom a company that tries to set up a dialogue via the
Internet with its customers
Buying intention for product decreases when reading
negative experiences online f rom other customers
Before making important purchase decisions I always try
to f ind experiences with that specif ic product of other users
on the Internet.
Brands should be more present on websites where consumers
share their product/brand experiences
Europe Belgium
Q: In the past 12 months, approximately how many times did you share a positive/negative experience with a product, brand or company on the Internet (n EU = 8.287, n BE= 556) Source: MC DC 2009 online research
% top 2 reported
32InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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45% of Belgian internauts think a forum with questions and answers of other clients should definitely be present on a corporate website. (MC DC, 2009)
33InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Brand identification
Offer a place where consumers can share experiences
Join the conversation (know where to look)
Start building...
34InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Advertising, targeting and media planning in the 21st century
“How to avoid avoidance ... via personalisation”
35InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The increasing media pressure
7 out of 10 Belgian Internauts are convinced that they are currently confronted with a lot more advertising compared to some years ago.(MC DC 2009)
36InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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69%
49%
43%
17%
34%
31%
14%
18%
26%
Irritated by advertising on
TV
Irritated by advertising on
the Internet
Irritated by advertising on
the radio
Top 2 Neutral Bottom 2
Q: To what extent do you agree with the following statements? (n = 549) Source: MC DC 2009 online research
TV has highest ad irritationReducing the gap online / TV
37InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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73%
63%
32%
17%
22%
38%
10%
16%
30%
Do something else when
commercial break on TV
Switch channels when
commercial break on TV
Leave a website with a lot of advertising
Top 2 Neutral Bottom 2
Media consumption is one thingAdvertising exposure another
Q: To what extent do you agree with the following statements? (n = 549) Source: MC DC 2009 online research
38InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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In 2006, a television spot needed to be broadcasted 150 times on American television in order to reach 80% of Americans. The same result could be achieved in 1987 with 3 broadcasts.(Himpe, 2006)
39InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Advertising as a means for activationSimple
Surprise
Concrete
Credible
Emotional
Story telling
40InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Personalisation next to activation
Q: To what extent do you agree with the following statements? (n = 549)Q: According to you, what are the 3 main characteristics of good online advertising? (n = 549) Source: MC DC 2009 online research
40%
34%
26%
Top 2 Neutral Bottom 2
49%
43%
42%
41%
41%
19%
18%
9%
It provides interesting information
It's cleverly creative
It's entertaining/fun
It's relevant to me
It of fers a discount
It's interactive
It contains multi-media (video or
audio)
It's shareable with others
I have no problem watching or receiving advertising if it is tailored to my needs
CHARACTERISTICS GOOD ONLINE ADS
41InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Openness to provide informationConvince the neutral audience
Q: Companies can use different services to provide you with more personalized information, customized services or product recommendations. To what extent do you find the following services useful?? (n = 549) Source: MC DC 2009 online research
47%
46%
34%
29%
27%
31%
37%
40%
38%
49%
23%
17%
26%
33%
25%
Personalised website based on
previous visits
Personalised online advertising by f illing out interests via an anonymous form
Personalised website based on purchase history
Personalised website based on browsing history
(across sites)
Contextual online advertising
Top 2 Neutral Bottom 2
44InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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61%
50%
35%
31%
28%
22%
10%
6%
TV commercial
Print ad
Online ad
Radio commercial
Outdoor
A mini site
Online viral video
A brand page on a social network
Media planning: 1 +1 = 3
Q: Suppose one of your favorite brands is launching a new product or service. What are the 3 main information channels you would like this brand to use when introducing this new product to you? (n = 549) Source: MC DC 2009 online research
45InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The role of search in brand building & lead generation
“Search is still in its infancy”
46InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Internet = search
74%
72%
59%
58%
56%
41%
39%
34%
80%
74%
56%
68%
57%
40%
34%
36%
Hobbies/personal interest
News in general/current af fairs
A product/service I want to buy
School- or work-related information
A shop/dealer where I can buy a product/service
A product/service I already own
People (prof ile, personal details...)
Download music, movies, images...
Europe Belgium
Q: Have you ever used an online search engine (e.g. Google, Yahoo!, Windows Live...) before? (n EU = 8.039; n BE = 530)Q: How often do you use online search engines to find information on the following topics? (n EU = 7.742; n BE = 528)Source: MC DC 2009 online research
96%
4%
Yes No
99%
1%
Yes No
EVER USED TOPICS SEARCHED (% WEEKLY)
47InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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77% of Belgian surfers always find what they're looking for when using online search engines
62% trust the results they obtain from online search engines
48InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Search is still in its infancy
Finding the most recent information?
Which search result is the most relevant?
Knowing exactly what you are looking for?
Using the “right” keywords to define your search
Deep Web vs. Shallow Web
49InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The surfer’s search cyclone
User enters keyword
User processes search results
User visits brand/retailer site
Keyword hunting
Category, brand, feature awareness
Product (experience) comparison
Customer experience
How we wish they searched ... the actual search cyclone ...
50InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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11%
28%
28%
15%
17%
After the f irst 5 results Af ter 10 resultsAf ter 20 results Af ter 30 results
Af ter more than 40 results
Why SEO matters
Q: Suppose you enter a search in an Internet search engine but you don't find what you are looking for, at what point do you give up? (n EU = 7.742; n BE = 528)Source: MC DC 2009 online research
39% of all surfers believe that companies included in the top search results are market leaders in their domain (Jupiter Research, 2008)
51InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Sponsored links matter as well
69%
31%
Yes No
58%
32%
23%
22%
20%
69%
28%
13%
17%
11%
Sponsored links are necessary for search engines to survive
Sponsored links contain relevant information
I of ten click on sponsored links
I trust the sponsored links I receive f rom online search
engines
I have a more positive opinion of brands/companies if they are
present in sponsored linksEurope Belgium
Q: Are you aware that search result pages usually show two different types of links: sponsored links (paid for by the listed company) and natural links (where no payment is made by the listed company)? (n EU = 8.039; n BE = 530)Q: To what extent do you agree with the following statements regarding sponsored links? (n EU = 5.788; n BE = 381)Source: MC DC 2009 online research
52InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Search tips for marketers
Check your online brand identity
Words are key
Exploit universal search
Embrace social media
Invest in paid search
53InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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The future of search
Semantic search (e.g. Wolfram Alpha, Kosmix...)
Mobile search
Personalized search
Social search
Local search
54InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Mixed-mode buying
“It’s all about DCC”
55InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Discussion, Comparison, Conversation
Problem recognition
Information search
Evaluation of alternativesPurchase decision
Post-purchase behaviour Discovery
Conversation
56InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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WOM as key information sourceNiche channel
Mass channel
Trusted channel
Zap channelMean all items
Mean all items
Advertisements/commercials (offline)
Comparison websites
Other websites
Discussion with a dealer/sales assistant
E-mail or discussions with relatives, friends and acquaintances
A paper brochure
E-mail sent by companies
Advertisements/commercials(online)
Promotions and special offers (offline)
Promotions and special offers (online)
Search engine results
Corporate website
Websites with user reviews
Websites with expert reviews
0%
10%
20%
30%
40%
50%
60%
70%
0% 10% 20% 30% 40% 50% 60%
Information on TV, in newspapers, magazines or periodicals
Rel
iab
ility
info
rmat
ion
ch
ann
els
(% t
op
2 r
epo
rted
)
Usage information channels (% used)Q: In general, which of the following information sources would you consult to select a brand, manufacturer, provider or dealer for a new product or service? (n EU = 8.287)Q: To what extent do you find the following channels reliable when searching for information on brands, products and services? Source: MC DC 2009 online research
58InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Challenges for marketers
wecommerce
wesearch
webuying
72InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Digital consumption profiling dataBasic insights for marketers into the Internet population of 16 European countries
The P2P online economyHow many people are trading domain names, earning money via advertising on their personal website? Who is into peer-to-peer trading on auction and classified websites?
Interactive content on the move: the mobile futureThe mobile phone has become smart and offers opportunities for mobile marketing and location based services. What do consumers allow and expect from these services?
The medium is the messageHow to get your message across as a company? Which channels (e-mail, social networks, SMS,…) to use for which kind of messages?
The digital world as seen by digital natives, silver surfers and worldwide womenInsights into the role of the Internet from different target groups and viewing angles.
Emancipated consumers: from shouting to buildingHow many Internet users are voicing their opinion on the Internet and how to deal wit them as a company?
Building future proof brands: social influence marketingWhat do surfers expect from brands on social networks? How should you as a brand position yourself in their environment?
Building an online social identityIs online life a replacement or complement to the offline life? And why do they feel the need to exist online? How can brand and companies compose their own online social identity?
Digital utility seeking: the Internet and mobile as branding instruments / branded utilityCan you strengthen you brand by offering branded utilities? And which utilities do internauts expect and use?
Answers to 17 challenges today’s marketers are confronted with
Avoid avoidance: advertising, targeting and media planning in the 21st centuryWhat are the key elements of good advertising according to Internet users? Is there an overload of advertising? Is targeted advertising the solutions?
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Market Insights Branding & communication
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The role of the Internet in the purchase decision process: mixed-mode buying How important is the role of the Internet in the purchase process within my sector?
The role of search in brand building / lead generation How do people use search engines? Do peope use it to search for brands/products? Is it worth investing in SEM?
E-commerce drivers: influence of the economical climate Do people still buy online? What is the impact of the crisis on their online shopping behaviour?
Consumer trust and online confidence To what extent do people have faith in e-commerce, online applications and services and do they trust online advertising and promotions?
Return on information: providing personal data in return for personalized services and information What kind of information are people willing to share with a company? What is their opinion on behavioural tracking and recommendations based on past purchases / visits?
Enforcing customer loyalty through digital media What do your consumers think of your corporate website as support for after-sales? What could be improved to make your consumers more loyal?
Co-created product innovations leading to better brand experiences To what extent are people open to co-create with a company and how to approach them? What is the impact on branding and sales? Who are the people that diffuse new products and services and how do they share their opinions/influence?
Answers to 17 challenges today’s marketers are confronted with
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Customer experience Innovation
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Hungry for more?
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75InSites Consulting – IAB Breakfast MC DC – 07/10/09© In
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Gianni Cooreman
Digital Research Manager
InSites Consulting
T +32 9 269 16 01
M +32 494 521 776
http://www.linkedin.com/in/giannicooreman
http://twitter.com/giannicooreman
Digital Mediaand Marketing