1

M a r k e t i n g 2 . 0

Marketing 2.0: Transformation In a

Web 2.0 WorldDenis Gaynor, Josh Kwan,

Aloke Fernandes & Adi Kuruganti

2

M a r k e t i n g 2 . 0

Agenda• Marketing 2.0: Definition and Objectives• Industry Landscape• Important Players & Strategies• Learnings and proposed frameworks• Next Steps

3

M a r k e t i n g 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

4

M a r k e t i n g 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

5

M a r k e t i n g 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.

6

M a r k e t i n g 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

7

M a r k e t i n g 2 . 0Key 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

8

M a r k e t i n g 2 . 0

StrategiesPlayers Strategies

Companies

• 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

• 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

Metrics• Increasingly build domain knowledge in online space through acquisitions (Nielsen buying Buzzmetrics)

9

M a r k e t i n g 2 . 0

Marketing 2.0 Framework

DESCRIBE DEVELOP DEFINE

•Where are consumers seeking information?•What are consumers saying?•What media are consumers using?

•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?

Amazon Reviews, Engadget

Microsoft’s Origami, Quickbooks Groups

Technorati, Nielsen BuzzMetrics

10

M a r k e t i n g 2 . 0

The New Marketing

Blogs Podcasts

Search

Reviews

Brand Manager

Mobile

Trends

Brand Monitoring

Engage/Answer

Target Influentials

Corporate Blog

Advertising/ Sponsorships

Networks

Th

e C

on

vers

atio

n

11

M a r k e t i n g 2 . 0

Marketing 2.0 Effectiveness

Awareness Consideration Purchase Loyalty

•TV•Radio•Outdoor•Online Creative•WOM

•Print•Direct Mail•TV•Online Search

•Online Search•Websites•Promotion•Sales Force

•Websites•Customer Service

•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

MediaPlanning

Offline Metrics

Online Metrics

Measure Media Effectiveness ROI

12

M a r k e t i n g 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

13

M a r k e t i n g 2 . 0

Appendix

14

M a r k e t i n g 2 . 0

AppendixFuture 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