DIGITAL ADVERTISING GUEST LECTURE – ESTONIAN BUSINESS

school @ helsinki

Guest lecture – Lassi Nummi

23.04.2015

• INTRODUCTIONS

• DIGITAL DISRUPTION

• DIGITALIZATON AND CONSUMERS

• DIGITAL MARKETING AND ADVERTISING

• CUSTOMER CENTRIC & DATA DRIVEN MARKETING

• MEASURING AND KPI:S

• STORYTELLING

AGENDA

INTRODUCTION – LASSI NUMMI• Senior Manager, Digital Marketing @ F-Secure

• BBA (Business Information Technology), MBA (Tallinn University of Technology)

• Various tasks in digital marketing – as customer and agency representative • B2B, B2C, experience across industries

• Currently working on B2B digital marketing in Information Security industry

2001 20152004 2006 2010

Assistant / specialist Specialist PM / KAM / CEO CEO / Digital Director Head of B2B Digital Marketing

DIGITAL DISRUPTION

WHAT IS DIGITAL DISRUPTION?

Digital disruption is

the change that occurs when new digital

technologies and business models affect the value proposition of existing

goods and services.

• https://www.youtube.com/watch?v=neShgTczCM0

CHANGE OF MEDIA

CHANGE OF COMMERCE

NEW BUSINESS MODELS

CHANGE OF PUBLIC SECTOR

http://digital-agenda-data.eu/datasets/digital_agenda_scoreboard_key_indicators/visualizations

EU TAKING ACTIONS

• Digital agenda by European Union:

• https://youtu.be/fyjEtzW5VZs

KEY TAKEAWAYS – DIGITAL DISRUPTION

• Digitalization is reality and it’s happening right now• Trough digitalization new business on and innovation trough digitalization

models and processes –creates competitive advantage.• Digital disruption impacts traditional business models

• Commerce• Public Sector• Traditional manufacturing• Service industry• Etc..

• Huge opportunity, and new economy• Big data and Internet Of Things are technical innovations enabling the change

• Also subsidized by European Union and local governments (See EU)

DIGITALIZATION &CONSUMERS

SELECTED FINDINGS FROM GOOGLE’S CONSUMER BAROMETER

https://www.consumerbarometer.com/en/

• Developed markets – People have up to 3 devices connected devices they actively use.

• Touch points towards consumer multiply.• Touch point = place / media / device

where marketer’s message meets the customer.

• Customer behavior becomes more complex. • More information available.• Consumers are conducting research.

• Over 50% of consumers are doing research before purchasing (global level)

• Selected markets – purchase related information searches can be up to 80%

• Purchase channel (online or offline) does not impact research behavior.

• ROPO = Research Online Purchase Offline

• Example on research behavior when purchasing new TV

• How many purchases did online research before purchasing offline.

• E-commerce is impacting heavily to selected industries (See case Zalando)

• In selected markets and categories significant amount of purchases are being done online.

• For example (Clothing and Footwear):• South Korea– 75%• China– 52%• UK - 49%• “Showroom effect”

KEY FINDINGS

• Digitalization has big impact on consumer behavior

• Big differences between markets. More mature markets have more sophisticated purchasing and research models.• Developing markets & leapfrogs not to be forgotten (leapfrog = skipping

middle phases in development)

• Consumers use the information available online when making purchasing decisions.

• More significant the purchase – more research is being done.• Cars, Technology, Travel, Apartments

• Consumers use devices at hand – most often mobile / smartphone.

DIGITAL MARKETING AND ADVERTISING

WHAT IS DIGITAL MARKETING?

• https://www.youtube.com/watch?v=_PWqIMQux-g

DIGITAL MARKETING

• "Marketing Online (or Online Marketing)"• Digital marketing is the use of internet-connected devices such as computers,

tablets, smartphones and game consoles to engage consumers with online advertising.

• Digital marketing is the most measurable and cost effective way of marketing communications.

• Can happen real-time

• The only marketing communication way which enables real dialogue with customer

• Can be seen complex

• Constantly developing

• 2015 estimated global media spend is approx. 600 Billion USD

• Traditionally spent between media types:• TV• Print• Outdoor• Radio• Cinema• Digital

• Over last 10 or so years, the share of Digital has become significant.

• In selected markets (UK) up to 50% of all media spend is digital / online advertising.

• See- Change of Media – Disruption.

GLOBAL MEDIA SPEND

SELECTED DIGITAL ADVERTISING CHANNELS

SEARCH & SEM

DISPLAY SOCIAL VIDEO

E-MAIL AFFILIATE EARNED / PRCONTENT

MARKETING & SEO

NATIVE

SEARCH

• Seach Engine Advertising or Search Engine Marketing

• CPC based (Cost Per Click)

• Based on search keywords on which advertisers bid on and try to get their ads to show as first search results.

• The most popular form of online advertising

• “Must have” of digital marketing

• Dominated by google with over 80% of market share

• “The tool to harvest the demand”

DISPLAY

• The traditional “banner advertising” • Visual display ads are being shown in

different medias• Delivered trough Ad Networks (for example

Google Display Network)• Can be CPC (cost per click) based, also CPM

(Cost per mille) or cost per impression based.• Average CTR (Click trough rate) around 0,2%• Also custom solutions (video, expanding

versions, interactive banners)

SOCIAL

• Social media marketing = paid advertising in social media channels like:• Facebook• Twitter• Linkedin• Instagram• Pinterest

• Very easy to target

• Targeting by information available tough social media profiles.

• Different formats across channels and medias

• Usually CPC based.

VIDEO

• Video advertising is becoming more and more popular

• Can be targeted very carefully (Youtube is using google and Google plus data on the targeting)

• By 2017, video will account for 69% of all consumer internet traffic, according to Cisco.

• Youtube has more than 1 Billion unique visitors every month. Also Facebook is promoting video heavily.

• Pay per view, pay per click etc. The formats vary.

• http://www.theguardian.com/small-business-network/2014/jan/14/video-content-marketing-media-online

AFFILIATE

• Promoting your products or services trough partners online

• Partners gets commission if the consumers originating from their sites fulfills the agreed

• goals (leave their contact information, purchase online etcetc..)

• Comparision sites are mostly affiliate run

• Examples:• Travel booking sites• Flight comparison sites• Car and real estate sites• Banking, finance, insurance• Online stores

E-MAIL

• The Classic

• Sometimes referred as “Spamming”

• Marketing communications trough e-mail

• Preferably to opt-in audience (have marketing permission)

• Format of Direct marketing

• When combined with CRM / customer Relationship Management solution data, will perform the best.

• Works when it’s “adding value, relevant and topical”

RE-MARKETING

• Cookie (a small piece of code remembering where you have been) based advertising.

• In practice means that the message will follow the user across different websites and social medias.

• Effective when you want to get the visitor to return to your website or other digital channel.

• Can be highly personalized (time, interest etc based)

CONTENT MARKETING

• Hot at the moment

• Brands and advertisers are moving from pushing their message to attract consumers to their premises by providing entertaining and valuable content.

• Very important together with Search Engine Optimization

• Brand awareness and re-marketing

• Textbook example : • Red Bull Stratos – Felix Baumgartner jump• http://mashable.com/2012/12/19/red-bull-content-

marketing/• https://www.youtube.com/watch?v=FHtvDA0W34I

EARNED / PR

• Very close to content marketing

• Goal : To get your message to be published by 3rd

parties (and link to your content)• Blogs• News sites• Online medias• Social media shares

• Requires very good content

• Competition is tough

• Earned is usually boosted with paid media

• Sometimes Free is not free – see Affiliate

• Very few stunts and activities go viral with only earned media and social shares

• Native advertising = Promoting the content next to relevant content.

• Based on category tagging and “metadata”• No Creative (banner etc. ) needed, the actual

content will act as creative solution.• For example article about “Cyber Security” in

Trend Micro blog is shown next to article about “Cyber Threat” in news site.

• Different networks such as:• Outbrain• Amplify• Etc..

NATIVE ADVERTISING

CUSTOMERFIRST

CUSTOMER CENTRIC APPROACH

• Customer centric organizations tend to perform the best

• Customer centric = putting the customers needs first, and thinking the solutions from customer point of view.

• Enablers of customer centric approach:• Direct connection to customer of the product and service• Dialogue and channel back from the customer• Quantitative and Qualitative data (numbers and insights)

• Tools to develop customer centric approach:• Service design technologies such as • Customer Journey (Touchpoint) Mapping• Customer personas• NPS (Net Promoter Score)

Touch point map used in service design

CUSTOMER PERSONA

Customer personas are used when:• Planning the customer

experience and touch points

• Planning the messages and tone of voice + content

• Planning the media placements where we can meet the customer

• In marketing automation

CUSTOMER DATA & DATA DRIVEN MARKETING

• Understanding and knowing your customer is the key

• Impossible to do without up to date information about your customer

• CRM (Customer Relation Management) solution is essential part of any marketers toolkit.

• CRM solution is the central repository of the customer data and the core of all communications.

• In order to be effective the message needs to be relevant, therefore CRM and up to date data is foundation of all marketing.

• Every digital activity leaves a trace, the challenge is not to collect the data but to figure out how to use the data so that it adds value.

MARKETING AUTOMATION

• Marketing automation means partially automated communication to customer based on customer data and behavior history.

• Most of the online stores use marketing automation solution

• Uses pre-defined rules, customer personas, customer data and digital footprint (history of user) to send automated communications to the user.

• Most typical channels of communication is E-mail or SMS

• Typical use cases for Marketing automation:• Unfinished shopping baskets in online stores• Monthly offers• Targeted offers• Check-in e-mails when travelling• Etc…

COOKIES AND AD NETWORKS IN ACTION

1. Find out what Google thinks about you

In order to serve relevant ads, Google collects data about you and creates a profile. You can control and review the information Google has on you here:

http://www.google.com/settings/ads/

2. Find out your location history

If you use Android, your mobile device may be sending your location to Google. You can see your entire location history here:

https://maps.google.com/locationhistory

3. Find out your entire Google Search history

Google saves every single search you have ever done. On top of that, they record every Google ad you have clicked on. This log is available in Google web history controls:

https://www.google.com/history/

GOOGLE YOUTUBEHow does Google see me?

http://t.co/hSxzJaPfMy search history in

YouTube?.

https://www.youtube.com/my_search_history

Where have I been in last 30 days?

https://maps.google.com/locationhistory

My watched videos in YouTube?

https://www.youtube.com/feed/history

When have I accessed my Google account?

https://security.google.com/settings/security/activity

More Google and advertising settings

https://www.google.com/settings/accounthistory

MEASURINGDIGITAL MARKETING

MEASURING AND KPI:S

• Digital marketing’s competitive advantage to other marketing is that it can be measured and adjusted real-time.

• Out of all data what can be collected it’s important to select couple of Main KPI:s (Key Performance Indicators) what to follow real time.

• These can be then supplemented by secondary KPI:s

• KPI:s in digital marketing can for example be (Case e-commerce):• Sales in €• Average order value• Shopping basket abandon rate• Average shopping basket value• Cost per order• Cost per visitor• Amount of unique vistor

• Cookies have been de-fact standard of visitor tracking, but they are browser based, and does not serve the modern multi-device use cases.

• Facebook and google are coming up with their own solutions to replace cookies..

STORYTELLING

STORYTELLING

• Even tough the advertising and media landscape is changing the storytelling is still very much there.

• People trust Native, True advertising which gives them something:• Entertainment

• Emotions

• Practical advice

• Other added value

https://youtu.be/owGykVbfgUE?list=PL9Xlh2Jq9l7XJngz1UM8ngcqFLX9h9VBR

https://youtu.be/owGykVbfgUE https://youtu.be/4ba1BqJ4S2M

https://youtu.be/R55e-uHQna0 https://youtu.be/nFeb6YBftHE

https://youtu.be/FHtvDA0W34I

https://youtu.be/ZUG9qYTJMsI https://youtu.be/8DnKOc6FISU

https://youtu.be/Q5mHPo2yDG8

https://youtu.be/XpaOjMXyJGk https://youtu.be/M7FIvfx5J10

https://youtu.be/IpbDHxCV29A https://youtu.be/DWc8dUl7Xfo

https://youtu.be/XjJQBjWYDTs https://youtu.be/GC2qk2X3fKA

https://youtu.be/PnDgZuGIhHshttps://youtu.be/pvcj9xptNOQ

THANK YOU