foundations of web 2.0 marketing. let’s revisit: what is traditional marketing all about? what is...
Post on 18-Dec-2015
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Foundations of Web 2.0 Marketing
Let’s Revisit:
What is traditional Marketing all about? What is different about Web 2.0
Marketing?
21ST Century Marketing Challenges
FRAGMENTATION!!AttentionDemand
Attention Economy
Fragmented media and channelsConsumers tuning out or completely
skipping messages 61% of consumers say that marketers and advertisers do
not treat them with respect 69% are interested in products or services that would help
them skip or block advertising
Poor Information/Metrics on effectiveness
Fragmentation makes…
reaching keeping the attention of your customer
ever harder.
As a clever marketer, ask yourself:
What am I asking consumers really when I build a community?
…when I ask for consumer production? …when I ask for participation of any
kind?
Long Tail (Chris Anderson)
Niches are Riches
What is “Natural Demand”?
The “Head” of the Demand Curve:Pre-Internet, old economy firms turned out a
small number of “hits” or blockbuster products
The “Tail” of the Demand Curve: Internet-era, new economy firms offer a
broader range of niche products.
The Head
Prior to the Internet, production, distribution, and consumption focused on a few hits because of scarcity of resources: there simply was not enough time, space, or money
for businesses to offer everything for everybody. The 80/20 rule was the dominant model—20
percent of a business’s products accounted for 80 percent of its sales (and usually 100 percent of its profits).
The Long Tail
In markets where technology dramatically reduces the costs of reaching niches through one or more of these powerful forces: democratizing the tools of production greatly
expands the universe of content democratizing distribution greatly reduces the costs
of consumption connecting supply and demand by lowering search
costs of finding niche content drives demand down the tail.
Is there a Long Tail? www.rogerebert.com hosts more than ten
thousand reviews and its Web traffic statistics show that even the most popular film represents less than 1 percent of their business. In June 15, 2006, "The Da Vinci Code" and
"Brokeback Mountain" were tied at 0.8 % of page views
the next most requested reviews in 2006 have been for "V for Vendetta" (0.7)
"X-Men: The Last Stand" (0.6) "An Inconvenient Truth" (0.5).
The lesson: People are curious about a lot of different movies."
Is there a Long Tail?
The Long Tail of Holiday Music. eMusic has 1,226 holiday albums in the
catalog1,128 have been downloaded over the past
month. That's 92% of the catalog!
Source: Digital Audio Insider
To Summarize:
In virtually all markets, there are far more niche goods than hits
The cost of reaching those niches is now falling dramatically.
The demand curve flattens. There are still hits and niches, but the hits are
relatively less popular and the niches relatively more so.
All the niches add up. Although none sell in huge numbers, there are so many niche products that collectively they can comprise a market rivaling the hits.
The natural shape of demand is revealed. That shape is far less hit-driven than we have been led to believe.
21ST Century Marketing Challenges
Twitter, ‘nough said…
Moment of Honesty
Do we really have a definition of Web 2.0?
If I were to do one this is probably it: “Maybe it is a ‘new’ Internet and if it is, it is more
about concepts than definition. In my view, it centers around:
freedom of expression horizontal innovation enabling openness, connectivity, and exchange of
information (most importantly?) respect of individuals as contributors
Group Exercise
What do you consider Japanese Airline’s most pressing online marketing challenge today?
What do you consider Matrix and Crew BOS Ltd’s most significant online marketing challenge in the (near to medium) future?
Take a page from the Youtube-revolution and develop one specific campaign for one specific objective.
Of Influentials and Search Engines
BloggersPodcastersVideobloggersSneezers
DiggTechnoratidel.icio.us FlickrGoogle
Interruption
Does Customer Interruption still work?
Web 2.0 Communication shows two things:
Consumers love to interrupt!Consumers love to talk!
Changes your Relationship
From ‘selling to customers’ to ‘hosting guests’
From ‘controller’ of communication (teller of stories) to ‘enabler’ of communication (resource for stories told by others).
Digital Communication Map
Consumer
Marketer
Marketer Consumer
Digital Communication Map
Consumer
Marketer Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing
Marketer Consumer
Digital Communication Map
Consumer Social searchThird party and retailer evaluation sites (e.g. epinions.com)BlogsWikisSocial networking sites
Marketer Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing
Marketer Consumer
Digital Communication Map
Consumer Social searchThird party and retailer evaluation sites (e.g. epinions.com)BlogsWikisSocial networking sites
Marketer Link buildingNews releasesBlogs/Online forums
Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing
Marketer Consumer
Digital Communication Map
Consumer Search EmailCompany-owned product evaluation sites (beta)Blogs/ Online forumsFeedback sites
Social searchThird party and retailer evaluation sites (e.g. epinions.com)BlogsWikisSocial networking sites
Marketer Link buildingNews releasesBlogs/Online forums
Retail sitesBanner Ads/LinksEmail/SpamNews ReleasesBlogs/Online forumsSearch Engine OptimizationViral/social marketing
Marketer Consumer
In your Groups:
Work together to fill the quadrants for the company assigned. Describe digital
communication strategy?
Analyze S&Ws What should it do?
Consumer
Marketer
Marketer Consumer
Nike, SunLife Insurance, Starbucks
Let’s share…
Lunch someone?