c r m day 2 online
TRANSCRIPT
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The Digital Reality
May 2008CRMHanoi
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Software & Ad Market
2007 Online Ad Market = $34B6% of total Ad Market
2009 Online Ad Market = $52B8% of total Ad Market
Online Ads
2009: $52BOnline Ads
$34B
Sources: -Market Sizes: Microsoft & Universal McCann- Online Market Sizes: Oppenheimer & Co. Inc., June 2007 (sources include Universal McCann, Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers )
Slide 2 | © Microsoft Corporation 2007
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Source: Source: PricewaterhouseCoopers (PwC) and Wilkofsky Gruen Associates, "Global Entertainment and Media Outlook: 2007-2011," June 20, 2007
2007 Internet Spend
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Everything will be Digital
“Over time, all ad money will go through a digital ad platform.
All media goes digital; all advertising goes digital." Steve Ballmer, CEO Microsoft
“In 3-5 years all advertising will be interactive!”Kevin Roberts, Global CEO Saatchi & Saatchi
Slide 4 | © Microsoft Corporation 2007
“Every physical process will be transformed to digital, mobile, virtual, personal!”Carly Fiorina, former Chairman & CEO of Hewlett-Packard
Source: Various, incl. AdAge Aug 2007
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•A few examples of changing media
Slide 5 | © Microsoft Corporation 2007
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Future Shape of Advertising
Slide 6 | © Microsoft Corporation 2007
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The Consumer is in Control
Slide 7 | © Microsoft Corporation 2007
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The Consumer is in (Remote) Control
Slide 8 | © Microsoft Corporation 2007
WE are
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Slide 9 | © Microsoft Corporation 2007
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Slide 10 | © Microsoft Corporation 2007
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Slide 11 | © Microsoft Corporation 2007
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Youth Media Consumption
Source: JP Young Adults 2002-05
Slide 12 | © Microsoft Corporation 2007
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Courtesy MTV
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Courtesy MTV
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Courtesy MTV
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Circuits of Cool Microsoft/MTV Global Youth Study
2007
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Internet – Most Loved Technology
What do you think of these?
Slide 17 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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Which Technologies Serve Which Roles?
Slide 18 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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Young People Identify Synergies as Well as Unique Features When Explaining the Role of Devices
1 Relaxes Relaxes Learn Things Fills Time Fills Time Feel
Connected Fills Time
2 Fills Time Fills Time Fills Time Feel Connected
Feel Connected
Helps Me Feel Safe Relaxes
3 Gives Me Energy
Learn Things Relaxes Relaxes Relaxes Sense of
FreedomProblem Solving
Most Common Role of Device
Slide 19 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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Internet is Everyday Life 61 Percent Agree That Going Online is One of the First Things They Do When
They Come Home From School Or Work
62%68% 62% 61%
68%69%69%70%
58% 58% 57%57%
53%56%56% 52%
Slide 20 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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Searches
Recommended by Sites I Trust
Friends via IM
Friends via E-mail
TV
Magazines
Newspapers
Radio
What is the Source of Their Links?Primarily Searches, Trusted Sites and Friends via IM and E-mail
79%
0% 10% 20% 30% 40% 50% 60% 70% 80%
49%
45%
43%
31%
27%
20%
13%
Source of Links
Slide 21 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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Number of Friends/Contacts in Digital Communication
94 Mobile Numbers
78 IM Buddy List
84 Contacts on Social Network
Slide 22 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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IM Buddies Global Average = 78
136 109115135
97 96 9396
86 8188
Slide 23 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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The Blurring of Communication and Entertainment – Communication Tools Are Used to Share Content
Gossip 62%
Films/Music/TV 52%
Links to Websites 50%
Music Files 49%
What’s on TV Right Now 47%
Clips/Photos I’ve Found 46%
Clips/Photos 44%
IM E-mail
Work/School 46%
Links to Web Sites 36%
Clips/Photos I’ve Found 30%
Clips/Photos 30%
Music Files 27%
Films/Music/TV 26%
What’s on TV Right Now 16%
Slide 24 | © Microsoft Corporation 2007
Source: Microsoft-MTV Circuits of Cool Research 2007 conducted by OTX
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A typical 21 year old...
Thanks to www.martinlindstrom.com
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...has played 5.000 hours of video games
Thanks to www.martinlindstrom.com
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...exchanged 250.000 emails, instant and SMS messages...
Thanks to www.martinlindstrom.com
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...10.000 hours of mobile phone usage...
Thanks to www.martinlindstrom.com
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...and has spent 3.500 hours of time online...
Thanks to www.martinlindstrom.com
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Channels
1,7 5,4
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Today, the gaming industry is double the
size of the movie industry.
Thanks to www.martinlindstrom.com
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Gamers mainly play during prime time TV. Next to gaming, the
internet is the preferred medium,
followed by television.
Thanks to www.martinlindstrom.com
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“Halo 3 generated $170 million in sales
“The incredibles” reeled in $70 million
(Both in one weekend) .
Thanks to www.martinlindstrom.com
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Everquest has 2.2 million members
(spending 28 hours per week).
Thanks to www.martinlindstrom.com
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Animal crossing gets 5.000 new
users a day.
Thanks to www.martinlindstrom.com
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86 million adults are currently playing computer games.
Source: Businessweek, October 2006 & Thanks to www.martinlindstrom.com
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Life of a 12-24 Will never read a newspaper but attracted to some magazines
Will never own a land-line phone (and maybe not a watch)
Will not watch television on someone else’s schedule much longer
Trust unknown peers more than experts
For first time willing (2005) to pay for digital content. Never before.
Little interest in the source of information and most information aggregated.
Community at the center of Internet experience
Think not interested in advertising or affected by brand, but wrong.
Everything will move to mobile
Less interested in television than any generation before
Want to move content freely from platform to platform with no restrictions
Want to be heard (user generated)
Use IM. Think e-mail is for their parents
The Impact of the Internet--Year Six Report, 2007
Surveying the Digital Future—The World Internet Project USC Annenberg School--Center for the Digital Future
“Surveying the Digital Future” A Project of Center for the Digital Future-USC Annenberg School, 2007
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lean back
lean forward
out & about
scheduled demand participate
tv
print search
pvr iptv
out of home mobile internet
events
social media
…and new hybrids emerging every month
gaming
podcasts
youtube
Video ipodMobile gamesradio
virtual world
cinema
QR codesPOS
newsletter
LBM
sms voting
blogs
rss
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No more Mass Media?
Slide 39 | © Microsoft Corporation 2007
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Source: Europe: Screen Digest 2005, Japan: Wikipedia May 2006, US: US Federal Comms Commission, 2004
JapanJapan USUS FranceFrance GermanyGermanyUKUK
Number of TV ChannelsNumber of TV Channels
16861686
416416246246
9393
71097109
TV Channel ProliferationThe End of Mass Media
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The End of Mass Media
Source: NAB (1965 – 1986); Nielsen (2000)
34%34%
24%24%
13%13%9%9%
Slide 41 | © Microsoft Corporation 2007
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Multi-tasking
Source: MindShare, November 2005
Slide 42 | © Microsoft Corporation 2007
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Print Global Trends
1994199419941994 1995199519951995 1996199619961996 1997199719971997 1998199819981998 1999199919991999 2000200020002000 2001200120012001 2002200220022002
100100100100105105105105110110110110115115115115120120120120125125125125130130130130135135135135140140140140
1993199319931993
Slide 43 | © Microsoft Corporation 2007
1995
USD
bill
ions
con
stan
t pric
es19
95 U
SD b
illio
ns c
onst
ant p
rices
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Slide 44 | © Microsoft Corporation 2007
Source: eMarketer, JULY 12, 2007
-- Newspapers Losing Ad Dollars to Internet –
“Among 55 of the leading national US advertisers,
newspaper ad spending fell 14.3%
in 2006, while Internet ad spending grew 17.8%.”
Wachovia Equity Research Analysis,
“I don't know anybody under 30 who has ever looked at a
classified advertisement in a newspaper. With broadband
they do more and more transactions online.
Rupert Murdoch
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World Internet Usage
418 million users in Asia
321 million users in Europe
19 million users in Middle East
18 million users in
Oceania/Australia
33 million users in Africa
109 million users in Latin
America/Caribbean
Over 1 billion users in Asia : 36%
232 million users in North
America
Source: www.internetworldstats.com, Jun 2007
Slide 45 | © Microsoft Corporation 2007
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Source: www.internetworldstats.com, July 2007
Slide 46 | © Microsoft Corporation 2007
Exploding Online Users in APAC
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Source: www.internetworldstats.com, Jun 2007
Slide 47 | © Microsoft Corporation 2007
Exploding Online Users in APAC
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Exploding Online Population in Asia
Source: www.internetworldstats.com, July 2007
Slide 48 | © Microsoft Corporation 2007
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Exploding Online Penetration in Asia
Source: www.internetworldstats.com, July 2007
Slide 49 | © Microsoft Corporation 2007
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Regional Reach (vs. TV)
Source: Synovate Young Asians 2005, Hong Kong, Singapore, Korea & Taiwan
Slide 50 | © Microsoft Corporation 2007
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Regional Reach (vs. Print)
Source: Synovate PAX 2005/06 (Q2 ’05-Q1 ’06)% Av. Issue Readership,
Slide 51 | © Microsoft Corporation 2007
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Singapore Reach (vs. Print)
Source: MCS Audited Publications as at October 2006 ; * Bulk Distribution MSN Internal Data Dec 06, audited by PriceWaterhouseCoopers
Slide 52 | © Microsoft Corporation 2007
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Source: Universal McCann, power to the People, global Sruvey, Sep 07
Slide 54 | © Microsoft Corporation 2007
Asia’s active Blogsphere
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Blogging in Asia
• Almost half of the online Asian community have a blog (45%)*
• Why do Asians blog?*– Keep in touch - 53 % blog to stay close with
friends and family– Self Expression - 50% started their blogs to voice
strongly held opinions
• 48% of young Asians say reading blogs is their favorite online activity **
*Blogging Asia: A Windows Live Report, 2006.**Synovate Young Asian Survey, 2006.
Slide 55 | © Microsoft Corporation 2007
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Blogging in Southeast Asia
•25% view other people's blog
• 17% comment on other's blog
• 11% have a own blog
• 8% uploaded video
• 1% or less of visitors to UGC sites upload content (2% Wikipedia; <1% You-Tube)
• 10% or less leave comments
• 90% are happy to sit back & be entertained by the storytellers
Slide 56 | © Microsoft Corporation 2007
Source: MTV Music Matters Reseach, April 2007 (Synovate)
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Who’s Online?
Source: PAX Q3,05-Q2,06 (10 markets ex Tokyo; among top Management Sample)
Slide 57 | © Microsoft Corporation 2007
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Average Hours of Media Exposure per Day - Asia
Source: Synovate Asia Bus Jun/Jul 2007, 15-64 years
Slide 58 | © Microsoft Corporation 2007
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Average Hours of Media Exposure per Day – Asia
- Aged 25-34 -
Source: Synovate Asia Bus Jun/Jul 2007, 25-34 years
Slide 59 | © Microsoft Corporation 2007
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Average Hours of Media Exposure per Day – Asia
- Top/Middle Management -
Source: Synovate Asia Bus Jun/Jul 2007, Top/Middle Management
Slide 60 | © Microsoft Corporation 2007
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Average Hours of Media Exposure per Day – Asia
- University Degree and above -
Source: Synovate Asia Bus Jun/Jul 2007, University Degree and above
Slide 61 | © Microsoft Corporation 2007
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Internet is Top Information Source – Asia
- Medium best described by Statement (%) -
Source: Synovate Asia Bus Jun/Jul 2007, 15-64 years
Slide 62 | © Microsoft Corporation 2007
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Internet is Helps People learn things – Asia
- Medium best described by Statement (%) -
Source: Synovate Asia Bus Jun/Jul 2007, 15-64 years
Slide 63 | © Microsoft Corporation 2007
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Internet is Helps People learn things – Asia
- Medium best described by Statement (%) -
Source: Synovate Asia Bus Jun/Jul 2007, 15-64 years
Slide 64 | © Microsoft Corporation 2007
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Internet is the Medium of Choice – Singapore- Medium best described by Statement (%) -
Source: Synovate Asia Bus Jun/Jul 2007, 15-64 years
Slide 65 | © Microsoft Corporation 2007
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Internet is the most helpful Medium for Product/Service Information
Source: Synovate Young Asians Nov 2006
Slide 66 | © Microsoft Corporation 2007
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Media usage by time of day - Aged 15-64 source – Singapore
<----------- Work hours ---------->
%
6am - 9am 9am - Noon Noon - 2pm 2pm - 6pm 6pm - 9pm 9 pm -
MidnightMidnight -
6am
67
Time of the day using different media
• During work hours, the Internet is the most used media most of the time
• In the evenings, the Internet is the second most consumed media after TV
• Usage of the Internet is rather even throughout the day
Market: SingaporeUniverse (Sample): Total population aged 15-64 – 2,557,606 (1,028) Source: Synovate AsiaBUS Survey June 2007
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Share of Advertising Expenditure - Singapore
Slide 68 | © Microsoft Corporation 2007
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Source: GroupM Forecasts, December 2006
2007 Internet Ad Spend (% of total)
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2007 Internet Spend
Slide 70 | © Microsoft Corporation 2007
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2007 Internet Spend
Slide 71 | © Microsoft Corporation 2007
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But Consumers are still way ahead….
Slide 72 | © Microsoft Corporation 2007
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Slide 73 | © Microsoft Corporation 2007
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Slide 74 | © Microsoft Corporation 2007
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Growth rate: years to reach a quarter of the US population
Digital Dominance
PrintPrint
Digital TV
Analogue radio
Cinema
OutdoorMobile
Digital radio
Games
Internet
Analogue TV
Source: ISOBAR
Slide 75 | © Microsoft Corporation 2007
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Internet for B-2-B?
Slide 76 | © Microsoft Corporation 2007
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Online Marketing Basics
1. How to start the Planning Process?
2. Metrics to measure Success?
3. How to buy?
Slide 77 | © Microsoft Corporation 2007
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Online Marketing Basics
1. How to start the Planning Process?
– It all starts with the right Brief
– Different Types of Campaigns
> Direct Response> Rich Media
Slide 78 | © Microsoft Corporation 2007
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Rich Media Ad Units generate higher CTRs
Source: DoubleClick, based on aggregated data from 136 large US DART for Advertiser clients, more than 30b impressions, Q1, 2006
Slide 79 | © Microsoft Corporation 2007
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Rich Media Ads – raise Purchase Intent
Source: Dynamic Logic MarketNorms, based on benchmark analysis, of 2,000-plus campaigns, Q1 2006
Slide 80 | © Microsoft Corporation 2007
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Rich Media Ads – trigger Action
Slide 81 | © Microsoft Corporation 2007
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Online Marketing Basics
1. How to start the Planning Process?
– It all starts with the right Brief
– Different Types of Campaigns
> Direct Response> Online Ad Effectiveness Studies
> Branding> Online Ad Effectiveness Studies
Slide 82 | © Microsoft Corporation 2007
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MDAS Exposure increases Branding
Slide 83 | © Microsoft Corporation 2007
Source: MSN, Online Ad Effectiveness – Aggregated European Average - 200 Euro Campaigns
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Effective Media Channels for Building Brand Equity
Slide 84 | © Microsoft Corporation 2007
Source: ANA Member Survey, Aug 2007
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Online Branding Explosion
Slide 85 | © Microsoft Corporation 2007
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Rich Media in Southeast Asia
Slide 86 | © Microsoft Corporation 2007
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Rich Media – The Future
Slide 87 | © Microsoft Corporation 2007
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Online Marketing Basics
1. How to start the Planning Process?
2. Metrics to measure Success
3. How to buy
Slide 88 | © Microsoft Corporation 2007
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Online Marketing Basics
Slide 89 | © Microsoft Corporation 2007
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Online Marketing Basics2. Metrics to measure Success– Direct Response> Ad Impressions> CPM (Cost Per Mille)
> Reach > Unique Users (Uus)> Cost per Eyeball
> Share of Voice (SOV)> Frequency> Filters> Ad Interaction (for Rich Media)> Replay Rate (RPR)> View Through Rate (VTR)
> Click-Through Rate (CTR)> Cost Per Click (CPC)
> Post Click/View Analysis> Download Rate / Viral Rate> Clickstream
> Conversion Rate (CVR)> Cost per Conversion> Sales Lift
> Customer Acquisition Cost (CAC)/Cost Per Acquisition (CPA)
> Customer Lifetime Value
In Addition:
– Branding> Brand Awareness> Message Association> Brand Recall> Brand Favourability> Purchase Intent
> Brand Exposure Duration (BXD)
Slide 90 | © Microsoft Corporation 2007
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Brand Exposure Duration
Challenge
• The new Marketing needs to not only to attract, but also engage & excite
• Reach & Frequency are not catering to measure the quality of Engagement & Excitement
Solution
• New metric: BXD
• BXD is the length of time an individual is exposed to a given advertisement
• BXD = Views × Percent of Segment Viewed × Segment Length
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Brand Exposure Duration - Examples
• BMW advertising strategy, termed “BMW Minutes”, focuses on maximizing the exposure of the BMW brand to their target audience
BMW Films (6m downloads x 7min = 42m minutes)
• MTV Singapore: 2 TVCs (60sec) = US$0.40 Cost per Minute of BXD
• MDAS: Singaporeans spend combined an average of 7,784 years of BXD on our network Media-Plans & Post-Campaign Reports give directional Evidence for Planning
Slide 92 | © Microsoft Corporation 2007
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Online Marketing Basics
1. How to start the Planning Process?
2. Metrics to measure Success
3. How to buy
Slide 93 | © Microsoft Corporation 2007
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3. Online Marketing Basics
3. How to buy – Rate Card– Types of Buys> CPM Buys> Position Buys> Daily, Weekly, Monthly
> Environments> Packages> Sponsorships
> Email / Alerts List Rentals
> Applications> Messenger Bot> Messenger Game
> Partner Modules
– Formats> GIF (animated)> JPG> Flash
> Animated> Interaction
> Rich Media> Video Ads> Expanding Banners
> HTML Emails> Themepacks
– Customized Solutions
Slide 94 | © Microsoft Corporation 2007
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Agenda
• What do people do online?
• Beyond the browser
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What do people do online?
• Creating
• Collaborating
• Playing
• Sharing:– Opinions– Life– Photos– Etc.
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People create
• Mentos in Coke
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People create
• Consumer following the trend
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People create
• Mentos jumping on the occasion:– Free media exposure of $10 Million– Sales +15%
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People create
• And Coca Cola was first skeptical...
"We would hope people wantto drink [Diet Coke] morethan try experiments with it.”
"craziness with Mentos doesn't fitwith the brand personality of Diet Coke.”
Coca-Cola spokeswoman
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People create
• But Coca Cola later followed the idea
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People create
• And even other brands try to get some attention
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People create
• A new book cover
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People create
• For some brands to win fame during Superbowl
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People create
• And for some brands – just to make fun of them.
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People create
• And sometimes just to send a message to the family
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People create
• Dove made a great viral film with very positive impact on Internet
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People create
• But than they tried to “engage” consumers with a very bad ad
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People create
• What can we learn from Dove’s mistakes:– You need to be more CREATIVE:
> you can’t force people to watch your commercial, they choose to do it– You need to respect the consumers:
> if you ask them to create something for you, reward them well– Don’t be afraid of conversation:
> people want to give their opinion, if you don’t give a chance, they will just get angrier
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People create
• Sometimes it’s not intended
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People create
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People create
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• People Play
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People play
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People play
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People share opinion
Consumers are to post 2 billion comments on the Internet by the end of 2005.
Consumers are 50% more likely to be influenced by WOM recommendationsfrom their peers than by radio/TV ads.
“2005 Consumer-Generated Media and Engagement Study”, Intelliseek 2005
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People share opinion
• Sometimes opinion about brands...
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People share opinions
• + 5 million reviews
• + 10 million trips/week checked
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People sharing
• Brands asking to cast their vote
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People sharing their lives
• Every day 75.000 blogs created
• Blogs are becoming vlogs, photoblogs, podcasts,...
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People share
• And brands blog
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People share
• Brands blog to create hype...
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People share
• And whether you like it or not people talk about you!
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People share
• ...photos
• Already more than 320 million photos posted on flickr.com
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People share
• Engaging with brands
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People share
• Brands asking people to take photo’s and share
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People collaborate
• German Harry Potter fans didn’t wantto wait 4 months for the translationof latest edition.They translated it collaborativelyonline in 48 hours.
www.harry-auf-deutsch.de
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People collaborate
• Nike: longest ever chain of football players
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People collaborate
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People collaborate
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People collaborate
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People collaborate
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People collaborate
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People collaborate
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In game advertising
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2D dynamic imagery
Client logo
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2D dynamic imagery
Client logo
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2D dynamic imagery
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2D Imagery
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Desperate Housewives Screenshots
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Desperate Housewives Screenshots
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Embed Transported 2 example
Full motion ads
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Counting impressions
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Elements of a remarkable online experiences
• Interactivity (Rich media experience)
• Communities / Word of mouth (Influencers to refer friends, pass along, )
• Engagement (Perform actions as well as browsing )
• Repeat visits ( Collect contact info )
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THANK YOU
Geert Desager
Tel: +65 9654 6305
Slide 150 | © Microsoft Corporation 2007