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Learning Outcomes
the impact of digital resources on marketing,
the key structural characteristics & differences
between digital resources,
the evolution in focus of electronic & digital marketing
from ‘channel push’ to ‘market pull’
the key trends in digital marketing: Internet advertising,
viral marketing, email marketing, search marketing,
social web marketing, gaming and mobile marketing.
the wider influences governing the effectiveness of a
digital marketing strategy.
How could an online community
use social networks to oppose an
international music franchise and
make British music history?
https://www.facebook.com/ratm4xmas
Many of the social interactions & information exchanges are
facilitated by digital technologies.
In North America, Western Europe and Oceania/Australia,
Internet penetration and adoption stands at approximately
63% (Internet World Stats, 2009).
With this has come development and adoption of digital
resources, from mobile technologies to internet and social
web resources such as blogs, social networking sites, wiki’s
and similar multi-media sharing services
Altering consumer expectations of their interaction with the
web or an organization and also changing how we market in
the digital space.
How big is Digital
Marketing and what does
it do for the user
Electronic
Marketing
It is not limited to one specific type or category of electronic
technology (e.g., Internet, TV), but includes both older analogue and
developing digital electronic technologies.
Digital
Marketing
Using specifically digital electronic technologies and channels
(e.g., web, e-mail, digital TV, wireless media and digital data.
Direct
Marketing
Is a type of marketing that attempts to send its messages directly to
customers. Not all direct marketing is electronic or using digital
technologies (e.g., direct mail).
Interactive
Marketing
Refers to marketing that moves away from a transaction-based effort
to a conversation (i.e., Two-way dialogue) and interaction. Not all
interactive marketing is electronic (e.g., face-to-face sales).
What would you say are
the main Digital
Marketing Methods
Social
Web
Marketing
Internet
Marketing
Internet
Advertising
Advergaming
Types
Online
Retailing
Search
Engine
Marketing
Email
Marketing
Mobile
Marketing
Viral
Marketing
It is important to understand how the many and varied digital
resources differ across key structural properties.
This helps to make a more informed decision about which
resources are most suitable for the achievement of your
marketing objectives.
Web 1.0
Web 2.0
Marketing Focus
Website or Content
User/Participant
Approach
Push
Push & Pull
Market Role
Audience
Participants
Market Behviour
Passive
Passive & Active
Interactivity
Machine Interactivity
Person and Machine Interactivity
Product Offering
Production
Co-production
Communication Model
Monologue (1-to-many)
Dialogue (1-to-1, Many-to-Many)
Control
External Pacing
External & Internal Pacing
Marketing’s Digital Evolution
What people say...
"The traditional marketing model we all grew up with is
obsolete.” James R. Stengel, CMO, P&G
"Mass marketing no longer works. It's the end of brand
positioning as we know it.” Larry Light, CMO, McDonalds
“To me, the challenge is not awareness, the challenge is
engagement." John Hayes, CMO, American Express
"JWT client Ford now spends only 30%-40% of its ad. budget
on traditional advertising, compared with as much as 80%
five years ago." Bob Jeffrey, CEO, JWT
How would you advertise
a product or service on
the Internet
Used to:
Increase website traffic (i.e., click-through)
Encourage product trial, purchase, & conversion
Encourage repeat purchase activity & referral
Eg: display advertising, classified listings, rich media
ads, search marketing.
Trends to 2009
Online advertising spend was £3.5 billion in the UK,
a 4.2% rise from 2008, exceeding TV advertising
spend for the first time.
⇑
⇑
⇩
⇩
Growth in SE marketing (up 9.5% to £2.15 billion)
Growth in video advertising (up increasing 140%,
generating £28.3 million).
Decline in display advertising (by 4.4% in 2009),
Decline in classified advertising (by 5.3% to £677.4
million down from £715.2m in 2008).
What are the key
considerations when
considering for
advertising on the net
Cost
Format
Intrusion
Key
Considerations
Location
Personalization
What are the key
considerations when
advertising on the net
Search Engine Marketing
SEM is a set of marketing methods to increase the visibility
of a website in search engine results pages (SERPs includes
search engine optimization (SEO),
paid placement (PPC),
contextual advertising,
digital asset optimization
paid inclusion
Paid listings Pay Per Click (PPC)
Natural or organic listings Search engine optimization (SEO)
<title> </title> tags
<meta name=“description = > tags
Or Snippets from page
Tip: Craft engagement messages for search results page
Test with site: www.domain.com <keyphrase>
Helps to sell product &:
Build a brand's
relationship with a
consumer
Create a sense of trust
Retain loyal customers
Generate revenue as
well as referrals.
Make the campaign targeted –
80/20 rule
Gain and Confirm Permissions
Personalize
Message and Copy
Subject line
Source Address: ‘From’
Test, test, and retest
Track, report, and mine results
Collect and follow up responses
Spam blocking
Sources: IMT (1999); Glass (2006), Westlund (2009)
How can the ‘net
facilitate viral
marketing...
Word of mouth (WOM): internet &
mobile technologies have increased
it’s spread & speed of transfer with
ease & low cost.
Viral marketing:
any strategy
that encourages individuals to
digitally pass on a marketing
message to others, creating the
potential for exponential growth in
the message's exposure & influence.
Source MRB
Effective viral marketing
campaigning:
1) Give away useful products or
services
2) Provide effortless transfer to others
3) Scales easily from small to very
large
4) Exploits common motivations and
behaviours
5) Utilizes existing communication
networks
6) Takes advantage of others'
resources
Example of Viral Campaign - Obama’s presidential campaign, 2008
The Results
1 million+ Facebook fans, 50,000 +
YouTube search results & endless Twitter chatter
In one week Dec ’09, sold over 502,672
copies of it’s single making it
Christmas No.1 in ‘09.
Raising over £101,517.48 for Shelter.
2 new landmarks becoming:
the UK’s first download-only Christmas number
1
notching up the biggest one-week download
sales total in British chart history.
“This is a truly remarkable outcome and possibly the greatest chart upset ever”.
Gennaro Castaldo HMV
Social Web Marketing (SWM) is a
form of digital marketing using the
social web & social media for
marketing activities - sales, PR,
research, distribution, customer
service.
Aim is to build a brand’s
Social Brand Equity. Social
capital, is the relations among
individuals
(Coleman, 1988).
Twitter
Facebook
The most favoured tools are:
Foursquare
Social networks (Facebook, LinkedIn),
Followed by video sharing sites
Google+
(YouTube),
Instagram
Image sharing sites (Flickr),
Blogging platforms (WordPress) and
Blogs
Microblogs (Twitter and Seesmic).
LinkedIn
CMO Survey (2009)
Yelp
YouTube
Delicious & Digg
Sharing Control
Conversations &
Dialogue
User-generated
Content
Principles
Community &
Social Networks
Co-created
Content
Why is the mobile a
leading digital marketing
tool
The use of computer and video games as a medium in which to
deliver advertising. Advergames consist of
both membership models of multiplayers (e.g., MMORPG such as
World of Warcraft),
Apps downloaded to a mobile device or added to an online social
network
Viral games wherein the game is passed on from user to user on
the web.
Most advergames require users to register, allowing for the
collection of data for marketing research and other marketing
initiatives
It is about “perceived playfulness” from digital resources.
Perceived playfulness is the degree to which current /potential
users believes that the technology will bring a sense of pleasure.
It is an intrinsic motivator, influenced by the users experience
with the digital environment.
2 rising trends in digital gaming platforms are social networks
and mobile phones.
Social Networks
◦ Applications such as ‘FarmVille’ or ‘Bejeweled’ which induce
users to play games with their friends.
◦ Facebook now has had more than 52,000 applications,
allowing Facebook users to send each other virtual hugs,
share movie picks & play games
◦ Every month more than 70% of Facebook users engage with
platform applications, with more than 9,000 applications
having over 10,000+ monthly active users (Facebook, 2010).
Mobile Phones
◦ As at January 2010, Apple’s App Store was serving over
100,000 downloadable iPhone apps, with overall, iPhone
owners worldwide having downloaded over 2 billion apps.
Games appear to be the hottest items in the Apple App Store.
Jurisdiction:
◦ Where does digital marketing activity actually take place?
Ownership:
◦ Who owns the content we create and share?
Permissions:
◦ Do you have the right permissions to upload and share
content?
Security:
◦ How secure is the data and information you share?
Accessibility:
◦ Does everyone who wants access have access?
Consider the impact of digital resources on marketing.
Appreciated the key structural characteristics across which
electronic and digital technologies differ.
Understood the evolution in the focus of electronic and
digital marketing from ‘channel push’ to ‘market pull’.
Discuss key trends in digital marketing: Internet
advertising, viral, email marketing, search marketing, social
web, gaming & mobile marketing.
Outline the wider considerations that influence the
effectiveness of a digital marketing strategy.
General Electric
GE and LinkedIn
What do you think LinkedIn offers the
business
What does LinkedIn’s social media platform
offer the business-to-business and business-to-consumer
user
What benefits has GE derived from using LinkedIn? How well
did GE exploit the technologies made available to them by
LinkedIn?
If you were starting your own service business providing
services to your niche what forms of social media would you
employ? Explain the reasons for your choices.
What lessons can we learn from social media marketing to
take away & apply elsewhere?