Transcript Marketing 2.0 Presentation - Kellogg School of Management

Marketing 2.0
Marketing 2.0:
Transformation In a
Web 2.0 World
Denis Gaynor, Josh Kwan,
Aloke Fernandes & Adi Kuruganti
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Marketing 2.0
Agenda
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Marketing 2.0: Definition and Objectives
Industry Landscape
Important Players & Strategies
Learnings and proposed frameworks
Next Steps
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Marketing 2.0
Marketing 2.0 – Definition
• What is Marketing 2.0?
– Marketing 2.0 is the strategy for targeting and
influencing consumers in a world in which technology
has enabled media proliferation, customer
empowerment, and information transparency
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Marketing 2.0
Objectives – The 3 D’s of Marketing 2.0
Provide the brand manager with a framework and
toolset to exploit emerging Web 2.0 technologies:
– Describe what has changed in the media
landscape including wide ranging implications
– Develop strategies on how to participate and
ultimately influence consumers with this new
conversation philosophy
– Define metrics to measure effectiveness of
Marketing 2.0 efforts
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Marketing 2.0
State of the Industry: What is the media
landscape?
• Consumer online usage is high
– 72% of U.S. adults use the Internet, and 59% of home Internet users have
broadband access. (Source: Pew Internet Project)
– 67% of U.S. adult Internet users have purchased a product online. (Pew Internet
Project)
• Media consumption is shifting toward new formats
– Influence of traditional media is declining: Ratings for the 3 major network
newscasts fell 28% from 1993 to 2003, from 40.7 million to 29.3 million viewers.
(Nielsen Media Research)
– Consumer-generated media is on the rise: 70,000 new blogs are created every
day and bloggers write 700,000 new posts daily and 50 million people read
blogs. (Technorati, Pew Internet Project)
– Ad spending is slowly migrating away from traditional media: Internet advertising
grew 13% to $8.3 billion for 2005 while TV and radio categories declined in the
overall $143.3 billion advertising industry. (TNS Media Intelligence)
• Proliferation of devices
– Consumers are using a wider variety of devices, from video iPods to Sony PSPs
to Treos, so companies must adopt a larger array of technologies to reach
consumers.
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Marketing 2.0
State of the Industry: Key trends
• Ascent of “The Millennials”
– They multi-task across a variety of media, so marketing promotions
must be cross-platform & integrated
– Anywhere, anytime demand for content means companies must follow
consumers to where and when they consume media
• Speed and magnitude of hype is accelerating
– Group-think on blogosphere means that more people will jump on a new
hot trend more quickly than ever before. On the other hand, the fads will
fade faster, leading to shorter cycles of attention
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Marketing 2.0
Key Players
Traditional Players (Pre Web 2.0)
Corporations
Biggest Advertisers: Automotives, Consumer Packaged Goods, Retailers
Media Providers
Newspapers: NYTimes, Broadcast: ABC, NBC, CBS, Cable: CNN, Fox
Media/Advertising
Agencies
Starcom, WPP, Leo Burnett, Arc Worldwide
Metrics Providers & online
websites
Nielsen, Yahoo!, MSN & Google
Emerging Players (post Web 2.0)
Social Media
Yahoo!, Blogger (Google), Gizmodo, Flickr, MySpace, Wikipedia
Online Metrics
Technorati, Nielsen Buzzmetrics, Comscore
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Marketing 2.0
Strategies
Players
Companies
Strategies
• Companies proactive about targeting harder-to-reach customers (teenagers). New found strength of
viral marketing both through online and offline media (e.g. Tremor)
• Using Web 2.0 mediums (blogs, podcasts etc) to build new brands and protect existing brands/products
• Demanding far greater ROI metrics from Media Agencies. Most of the large brand firms have either
changed existing media agencies or distributed work across a group of agencies
Media
• Traditional media companies are struggling to keep customers. Increased focus on original content and
have both offline and online properties (NYT buying About, News Corp buying MySpace)
Media/
Advertising
Agencies
• Media agencies facing pressure from firms to demonstrate effectiveness of campaigns to reach hard to
reach customer
• Some Advertising agencies building PR capabilities to track influence of mediums like blogs
• Key strategy is to demonstrate know-how in helping client build brand and sell products by reaching
target customer segments across a plethora of mediums (internet, TV/Cable etc)
OSN/Websites
Metrics
• Goal is to build content knowledge through collaboration with customers (create customer stickiness)
• Heavy use of viral marketing to build customer base. Push to blogs, podcasts and RSS feeds
• Leverage loyal customer base to drive higher revenue through targeted advertising
• Increasingly build domain knowledge in online space through acquisitions (Nielsen buying Buzzmetrics)
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Marketing 2.0
Marketing 2.0 Framework
DESCRIBE
•Where are consumers
seeking information?
•What are consumers
saying?
•What media are
consumers using?
Amazon Reviews,
Engadget
DEVELOP
DEFINE
•What are the marketing
objectives?
•What are the creative
marketing opportunities?
•What are the messages
and medium for
stimulating buzz?
•What are the best ways
for participating?
•Who are the influentials?
•How do I use customer
feedback in product
development?
•How do I measure
against objectives?
•How do I measure buzz?
•How do I measure ROI
from online campaigns
and Marketing 2.0?
•How do I compare
effectiveness of offline
campaigns with online
campaigns?
Microsoft’s Origami,
Quickbooks Groups
Technorati, Nielsen
BuzzMetrics
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Marketing 2.0
The New Marketing
Brand Manager
Trends
The Conversation
Brand Monitoring
Engage/Answer
Target Influentials
Advertising/
Sponsorships
Corporate Blog
Reviews
Blogs
Networks
Mobile
Podcasts
Search
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Marketing 2.0
Marketing 2.0 Effectiveness
Awareness
Media
Planning
•TV
•Radio
•Outdoor
•Online Creative
•WOM
Consideration
•Print
•Direct Mail
•TV
•Online Search
Purchase
•Online Search
•Websites
•Promotion
•Sales Force
Loyalty
•Websites
•Customer Service
ROI
Measure Media Effectiveness
Offline
Metrics
Online
Metrics
•Awareness
•Attitudes
•Reach
•Purchase
Intention
•Sales
•Distribution
Coverage
•Customer
Satisfaction
•Repeat
Purchase
•Page
Impressions
(Reach)
•Conversations
(Buzz)
•Click Through
Rate
•Sales
•Inquiries
•Site Visits
•Blog activity
•Relays
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Marketing 2.0
Next Steps – Who we’ll contact
• Brands (hopefully)
– P&G, Johnson & Johnson
• Online companies
– Yahoo, Google
– Blogs: Technorati, Blogger
• Metrics
– Nielsen Netratings
– Word of Mouth Marketing Association
– Intelliseek
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Marketing 2.0
Appendix
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Marketing 2.0
Appendix
Future of Online Advertising
• Customers collaborate with peers in the digital marketplace to co-create targeted
content
• Proliferation of social networks that form basis of customer identity
• Customers demand opt-in feature. Generic ads Tivo’s out
• Proliferation of platforms that customers use to communicate and get information
• Podcasts, blogs, RSS feeds
• Advertisers need to use multiple channels to reach target customer
• Digital share of advertising dollars said to grow to 10% of overall ad spending to
reach $23B by 2010
• Internet rich media ads expected to achieve CAGR of 31% ~$5.7B
• Search (focus on contextual) to achieve CAGR of 14% ~ $9.7B
• In-game advertising to achieve CAGR of 50% ~ $432M
• Mobile platforms ~$2B
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