Transcript NAMA - Slide Deck 1 of 2

Dana VanDen Heuvel | The MarketingSavant Group
[email protected] | www.marketingsavant.com
Dana VanDen Heuvel
The MarketingSavant Group
Dana is the founder of The
MarketingSavant Group and a
widely recognized specialist in
emerging marketing technologies
such as blogging, social media, RSS,
Internet communities and
interactive marketing trends and
best practices and speaks regularly
on these topics at industry events.
Dana is the creator of the American
Marketing Association
“TechnoMarketing” training series
and the author of the AMA
Marketech ’08 guide to marketing
technology.
Marketech ‘08
Marketing has not fundamentally
changed since the creation on the
marketing concept and our branching
out as a child of modern economic
theory. What has changed is how we,
as marketers, talk with our customers
and the tools, techniques and
especially the technologies that we
employ in those conversations.
This guide is meant to serve as an
overview of the marketing
technologies available to you, the
seasoned marketer. We’ve provided
you with the most accessible and
actionable tools in this guide.
Overview & Agenda
 9:00 // Begin
 Overview of TechnoMarketing
 Word-of-Mouth Marketing and the Power of CGM
 10:45 // Break
 Mining the Social Media Space for Customer Intelligence
 Customer Community
 Online Video & Videoblogging
 Blogs, Podcasts and RSS
 Emerging TechnoMarketing tools (widgets, Twitter, etc)
 Putting it to work at in your organization
 12:30 // Lunch
EXPECTATIONS!
 What brought you here?
 What do you need to bring
back?
 How will you know when
you have it?
 What do you expect to DO?
 How should success LOOK,
FEEL and SOUND?
TO APPRECIATE NEW MARKETING:
FIRST YOU HAVE TO UNDERSTAND
WHAT’S BROKEN WITH
TRADITIONAL MARKETING.
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TRADITIONAL MARKETING & ADVERTISING
ADVERTISING CLUTTER
MEDIA FRAGMENTATION
CONSUMERS TUNED OUT
DOESN’T SCALE
LESS EFFECTIVE
MORE EXPENSIVE
LESS TRUSTED
LOWER ROI
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18%: Proportion of TV advertising campaigns generating positive ROI
54 cents: Average return in sales for every $1 spent on advertising
256%: The increase in TV advertising costs (CPM) in the past decade
84%: Proportion of B2B marketing campaigns resulting in falling sales
100%: The increase needed in advertising spend to add 1-2% in sales
14%: Proportion of people who trust advertising information
90%: Proportion of people who can skip TV ads who do skip TV ads
80%: Market share of video recorders with ad skipping technology in
2008
95%: The failure rate for new product introductions
117: The number of prime time TV spots in 2002 needed to reach 80% of
adult population – up from just 3 in 1965
3000: Number of advertising messages people are exposed to per day
56%: Proportion of people who avoid buying products from companies
who they think advertise too much
65%: Proportion of people who believe that they are constantly
bombarded with too much advertising
69%: Proportion of people interested in technology or devices that
enable them to skip
or block advertising
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Source: Justin Kirby & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. xix
Crisis In Mass Marketing
WHAT’S CHANGED?
"We can't compete on
price. We also can't
compete on quality,
features or service.
Dilbert’s Boss
cc 3.0, Megaqwerty
That leaves fraud, which
I'd like you to call
marketing."
CONTENT
CONTEXT
CONNECTIONS
COMMUNITY
Marketing Into the Future
Marketing in the education,
corporate, non-profit and small
business environments is changing
in ways that we’re just beginning to
grasp.
Technological
Social/Behavioral
The changes we see are taking
shape on three fronts.
Economic/Market Forces
Technology Changes Marketing
 Social media
 Video
 Widgets & gadgets
 Mobile Everything
 Virtual everything
 Universal search
 Web 2.0/3.0/4.0
Where Everything Is Headed
Today
Digital
Non-Digital
1996
2006
Source: Google
2050?
The
Revolution
will not be
televised
~ Gil Scott Heron
Information Proliferation
 Media Fragmentation - Then, and Now
1960
6
8,400
4,400
None
None
None
Now
TV channels/home
Magazines
Radio stations
Internet stations
Pages on Google
Blogs
130
17,300
13,500
35,000 +
10 B +
150 M +
360 Digital Marketing World
Online
Media
Community
sites
eNewsletters Email
eMail eCards
News
Syndication
Special
Interest
Blogs
Manifestos
Blog Search Engines
Conversations
Search Engine
Optimization
Photo Blogs
Keyword
Marketing
Listservs
Message Boards
Social
Computing
Influencer
outreach
Blog Aggregators
Chat
Rooms/Events
Portals
Real Simple
Syndication (RSS)
Content Partnerships
Search
Citizen
Action
eAlerts
Meetups
Text-messaging
IM
Wikis
Press Rooms
Online
Web Sites Viral Games &
w/RSS
Content Contests Advertising
Folksonomy
Social
Bookmarking
Digital
Devices
Phones
DVR
(Tivo)
PDAs
Game
Consoles
eAdvocacy
Digital Radio
VBlogs
Podcasting
Webcasting
Microcasting
Source: Ogilvy
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Social Behavior Changes Marketing
 Search
 Networked
 Low-fidelity
 Hierarchy of social needs
Social Hierarchy of Needs
Physiological
Food clothing Shelter,
health,
System access, retain
management of system
identity
Security and Safety
Protection from crimes
and war, living in a just
society
Protection from hacking
and trolling, privacy, level
playing field
Social
Ability to give and
receive love, belonging
to a group
Belonging to a
community as a whole,
and swarms (subgroups)
Self-esteem
Ability to earn self
respect, respect of
others and ability to
contribute
Ability to contribute and
be recognized for those
contributions
Self Actualization
Develop skills
Take on new roles and
new opportunities
Adapted by Amy Jo Kim - http://socialarchitect.typepad.com/
Focus on the “Long Tail”
 Reach out to the entire web
 To the edges and not just to the centre, to the
long tail and not the just the head
 Leverage customer-self service
e.g. Google, StumbleUpon, orkut
Harnessing Collective Intelligence
Network effects from user
contribution are the key
to market dominance in
Web 2.0 era
The Wisdom of
crowds
Users add value
 Amazon, ebay - User
reviews, similar items,
most popular,
 Wikipedia – content
can be added/edited by
any web user,
 Flickr – tagging images
 Cloudmark – Spam
emails
PEOPLE WANT IN…
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The New Economy of Marketing
 ROI is within easy grasp (for you, and them!)
 Can your R&D keep up with your market?
 Transparency reduces cost
In the future, organizations will compete on:
 Who can create a rich user community where
users interact with each other to improve
products
Internet Business Models – 5Years Out
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Advertiser-Supported Advertising: Brands are increasingly launching their own content
platforms. Some, like Budweiser's BudTV, go it alone. Others partner with online media
properties. P&G, for example, embedded Capessa inside Yahoo Health.
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Advertiser-Subsidized Devices: Content is a commodity. The barriers to entry are
obliterated. Still, this means we all need to make choices - human attention doesn't scale.
So how do you get consumers to choose your stuff? Simple. Use incentives.
Marketers will partner with consumer electronic companies to co-brand white-label
gadgets. For example, a Gap-branded set-top box could come with exclusive video
podcast subscriptions
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Just-in-Time Advertising: Digital advertising creative and planning, like any marketing
discipline, follows an arc. It's planned, placed, measured and eventually evaluated,
tweaked or tossed. However, in the digital world, brands need to be more nimble.
With the help of new technology, marketers will rely on "just-in-time" campaigns that
adapt to conditions. Ad creative will morph based on certain triggers. This will include
sales/ERP data, blog chatter/consumer feedback, weather/external conditions and more.
Out With the Old Business Models
The next generation of
marketing will be a hightouch, low scale, targeted
investment of time & human
capital rather than a flood of
dollars to win hearts and
minds
 Give something of
value away for free
 “Value forward”
 Brand second (last?)
 Rapidly emerging
opportunities
(skunkworks budget)
 Participation trumps
focus group
Emerging Economies Lead Future Online
Growth
Netherlands
Online Penetration in 2011
100%
World averages in 2011
US
Singapore
Norway
UK
Sweden
75%
Japan
France
Israel
Canada
Germany
50%
Italy
Czech Republic
Australia
UAE
Bulgaria
Russia
Saudi
Arabia
Chile
25%
China
Philippines
Argentina
Mexico
South
Africa
Brazil
0%
0%
Romania
5%
Egypt
Indonesia
10%
CAGR of Online Population (2006 to 2011)
Note: Not all countries are included. Size of bubble indicates relative size of the online population in 2011.
Source: JupiterResearch Worldwide Internet Population Model, 5/07
India
15%
Web 3.0 for Marketers
 Open authorship, wiki-base community
 Nuanced permission
 All media is rich media
 Local/GEO IP is
perfected
 Personas are the new target markets
 Device agnostic marketing experience
 ‘Search’ behavior is second nature
 Marketing has always been unplugged
 Virtual reality has always been available when the real thing failed
 Brand’s autobiography written in real time
Where Do We Go From Here?
 Web as a platform
 Software above a single device
 Data as the new “Intel inside”
 Harnessing collective intelligence
 Lightweight business models (Saas)
 Rich Internet applications
 Leverage the long tail
So Much to Learn - Reading!
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Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers (Robert Scoble)
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The Medium is the Message (Marshall McLuhan)
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Complex Responsive Processes in Organizations: Learning and Knowledge Creation (Ralph Stacey)
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The World Is Flat: A Brief History of the Twenty-first Century (Thomas Friedman)
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Informal Learning: Rediscovering the Natural Pathways That Inspire Innovation and Performance (Jay
Cross)
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Deschooling Society (Ivan Illich)
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The Innovator's Solution: Creating and Sustaining Successful Growth (Clayton Christensen)
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The Cluetrain Manifesto: The End of Business as Usual (Christopher Locke)
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Convergence Culture: Where Old and New Media Collide (Henry Jenkins)
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The Wealth of Networks: How Social Production Transforms Markets and Freedom (Yochai Benkler)
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Open Business Models: How to Thrive in the New Innovation Landscape (Henry Chesbrough)
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The Long Tail: Why the Future of Business is Selling Less of More (Chris Anderson)
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Wikinomics: How Mass Collaboration Changes Everything (Don Tapscott)
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Seeing What's Next: Using Theories of Innovation to Predict Industry Change (Clayton Christensen)
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Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages (Carlota
Perez)
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The Social Life of Information (John Seely Brown)
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The Wisdom of Crowds (James Surowiecki)
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Complexity and Innovation in Organizations (Jose Fonseca)
Dana VanDen Heuvel | The MarketingSavant Group
[email protected] | www.marketingsavant.com