promotions 2.0 team digital
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PROMOTIONS2.0 The future of
interactive marketing
The Big ShiftAdvertising isn’t what it used to be
New technologies,fragmented media, and a new
generation of empowered consumers
are rapidly changing the world of advertising...
We’re Spending Less Time Here...
Radio-19%
TV-33%
Print-30%
Arbitron Research: Internet and Multimedia Study
Time spent with traditional media is declining
...And More Time Here.New technologies are captivating consumers
David Schenk, Marketing Smog
In 1971, the average person encountered
approximately
500 ad messages a day
Media fragmentation is increasing.
7
Today, that number
is almost
5,000
David Schenk, Marketing Smog
making it harder toengage consumers.
Online Advertising
“CPM Rates have been flat with
declining results for the past 2 years.”
Average click through rates now .01%
Paid Search “Losing its luster and expected to peak this year, followed by a decline.”
Borell Associates: The Big Shift Research Report (April 2008)
PASSIVE
Digital Consumersare shifting from passive shoppers to active brand participants
36 million Download music or video*
user
40 million Browse the web fromtheir mobile phone**mobile
50 million Have created online content*
producer95 million
Participate in online Contests
& Sweepstakes****participant
110 million Participate in
Social Networks*
community
200 million US consumers have shopped online
Over 875 million worldwide***
customer
*Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
0
7.5
15.0
22.5
30.0
Promotions Email Search Video Display
2008 2012
Source: Borell Associates inc. 2008
($ in
Billi
ons)
Online PromotionsSpending expected to surpass other online advertising
categories over the next 5 years.
Because promotions deliver results...
60%of US consumers have purchased a brand due to a promotion.*
82%of consumers will provide personal information in exchange for a chance to win.***
*IMI International **eMarketer ***Jupiter Research: Online Privacy Report
80%of online consumers have entered a sweepstakes.**
The New Marketing MixDigital Promotions + Advertising
Promotions + AdvertisingIncreased relevance & entertainment4
Brand Advertising Low Relevance - High Creative
Local or NicheHigh Relevance - Low Creative
Mass MarketingLow Relevance - Low Creative 1
2
3
Relevance & Entertainment* 2 axis that create consumer value in marketing:While all marketing is capable of playing in quadrant four, no single medium has broken through.
Rel
evan
t
Entertaining High
1
2
3
>Low >
>
>
Low
High
44
Increased Value Increased Value
Quadrant 4 = most value
Source: Joseph Jaffe
By combining digital promotions & advertising both relevance & entertainment value is increased moving closer to Quadrant 4.
Old Marketing New Marketing
Spray & Pray
Large Audience
Low Relevance
Low Return
Attract & Engage
Smaller Audiences
High Relevance
High Return
Promotions 2.0Marketers are using digital promotions today
to create buzz & cut through the clutter
Digital PromotionsFrom Brand Awareness to Engagement
Bra
nd A
war
enes
sHigh Consumer Involvement
Bra
nd E
ngag
emen
t
Low Consumer Involvement
>>>
>
Sweepstakes
Mobile
Instant win
Advergames
UGC
Social
Core Audience
Extended Audience
70% of CPG Super Bowl Advertisersused interactive promotions at the core of their 2008 campaigns.
Source: Promo Magazine
User Generated Contestsdeep brand engagement & active participation
Doritos changes the gameContest winner beats out madison avenue
winning USA TODAY'S 2009 Super Bowl Ad Meter
Advergamesbrand messages become viral brand experiences
30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial*
*2009, Harris Interactive Poll
Advergamesbrand messages become viral brand experiences
0
10
20
30
40
Advergames Video Tell-a-FriendAdvergames/
MicrositesOnline
ContestsSocial
BookmarkingTell-a-friend
Viral Video
Viral Marketing Tactics with “Greatest Results”*
* 2008 eMarketer, Viral Marketing Survey
Mobile Integrationparticipation anytime or anywhere
97% of consumers carry their phone at retail** Promotion Marketing Association Digital Summit
Largest US SMS Promotion New technologies driving innovation
Inclusive Experiences Everyone wins something. Someone wins everything.
One person win a trip to the World SeriesEveryone wins a taco if base
is stolen during the game
One college wins a private concertwith the Dave Matthews Band
Everyone watches online
Social Promotionspromotions worth talking about
Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers**
People Magazine: 3.6 million readers monthly**
*Comscore **infoplease.com
Promotion HellPoor planning can lead to big problems
Warning!Promotions are regulated & must comply with federal and
state laws to avoid civil & criminal penalties.
Axl Rose vs. Dr. PepperEveryone in America gets a Dr. Pepper (sort of)
No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
Rock the VoteStarbucks and Krispy Kreme face penalties for election day giveaways
Federal Statute prohibits any organization from “providing rewards for voting.”
Pepsi StuffedHarrier Jet a steal at 700,000,000 points
Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet.
Result: Out of court settlement and a whole lot of bad PR.
Promotions 3.0What’s next for advertising & promotions?
More Channels. More Noise
New channels & products will continueto distract consumers & clutter the landscape
Clutter ContinuesBrands will look for new ways to engage consumers
as media & product proliferation expands
Mobile DominatesMobile & Wireless devices will become the next
dominant consumer platform
65 Million U.S. Mobile Internet users in 2008 and growing*
* Promotion Marketing Association Digital Summit
Social Media ExpandsSocial Media is bigger than you think... and it’s just getting started
U.S. Social Network Usage
All Adults 35%Adults 18-24 75%
* Pew Internet & American Life Project, December 2008
Legal Issues Continue Privacy & Legal issues will continue to
create new challenges for marketers
+David Griffith is managing director of teamDigital, a brand based digital agency specializing in technology driven promotions that engage consumers, create loyalty, and increase brand value.
Blogwww.Promotions2.com
Websitewww.teamDigital.com
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