the future of digital marketing for higher education

The Digital & Social Marke2ng Environment or

How we lost the funnel!

June 20, 2014

Global Marketing Workshop for Academic Leaders

June 18–20, 2014 • SUNY Global Center • New York City

Introduc)on

•  Kurt Holstein President Azoic Ventures –  Cornell ’82 Opera2ons Research & Industrial Engineering –  Spent 16 years at P&G in Brand Management before leaving to start RoseOa in 1998 –  Grew RoseOa from two employees to one of the top 5 digital agencies in the US with

1,200+ Employees –  Sold RoseOa to Publicis in July 2011 for $575mm –  Re2red for 3 months…was bored out of my mind –  Started Azoic Ventures in Nov 2011 as an early stage venture fund. 11 investments to

date –  Also the Marke2ng Services Advisor to AEA Investors, one of the oldest PE firms in NYC

with $7.2B under management

What We’ll Cover Today

1)  Discuss how digital ini2ally changed marke2ng

2)  Consumer expecta2ons in a digital and social marke2ng environment

3)  How mobile and tablet devices are changing the user experience

4)  Where we are headed next

UNDERSTAND HOW DIGITAL HAS CHANGED MARKETING & ADVERTISING

Wow..That’s Really Old

1979 -‐ Apple II Introduced by Steve Job’s & Wosniack 1981 -‐ IBM introduces it’s first PC 1983 -‐ First Compaq “PORTABLE”

1982 Kurt Starts as an Assistant Brand manager at P&G

Marke)ng 33.3%

GP 33.3%

COGS 33.3%

% of Net Income

Tradi)onal CPG Brand Economics

0%

20%

40%

60%

80%

100%

50%

10%

40% Promo2on

Print/Radio

TV

Marke2ng investments and programs were simple and narrowly defined

% of Marke2ng Spend

• Search (SEO/SEM) • Banner Ads • Email lists

• e-‐Commerce Sites • Microsites • Blogs • IM Bots

• Personalized DM • Desktop Widgets • Toolbars • Template-‐driven emails • Online Points Prgms

Web 1.0 Advances in digital technology changed the way people interact with and experience a brand (late 1990’s – early 2000’s)

Awareness & Acquisi)on

Engagement & Conversion

Consumer Rela)onship & Loyalty Marke)ng

Digitally Enabled

“Top Down” Approach

Tradi2onal Print, TV, PR and Radio Ads

FSCIs, Circulars, POS, Catalogs and Call Centers

Direct Mail, email, Frequent Shopper Cards

Digital Marke)ng Tac)cs Evolved Quickly through 2010 Very rapid evolution from static “One Size Fits All” to dynamic digital marketing tool

Search • SEM keywords • Keyword Op2miza2on • AOribu2on Models • Image search • Video in search

Web sites • Sta2c web pages • Forums • News groups • html

• Dynamic Web pages • Web services • Rich Internet Applica2ons • Apps/Online Tools

Email • Image-‐based sta2c emails

• Template, decision rule driven dynamic emails

• Image rich/video embedded

Ad Banners • Flat sta2c banner ads • Rich media ads • Real Time Bidding

Web 1.0 Web 2.0 Tactics:

Community

Web 3.0: Web 3.0

Social Communi2es are the New Major Marke2ng Channel

(percentages may not total 100% because of rounding)

Decrease Increase Stay the same Social media

Mobile

Online video Game marke2ng

Email Sta2c display ads

Direct mail

Radio Outdoor

Magazines Telemarke2ng Yellow pages Newspapers

86% 11% 4%

84% 13% 3%

83% 15% 2%

83% 13% 4%

78% 19% 3%

73% 17% 11%

62% 23% 15%

21% 37% 42%

18% 41% 41%

16% 49% 35%

15% 59% 26%

11% 49% 40%

11% 37% 53%

8% 29% 64%

6% 33% 61%

Search engine marke2ng

Interac2ve display ads

Increasing effec2veness

Declining effec2veness

Trad

i)on

al

Interac)ve

Source: Forrester Research US Interac2ve Marketer Online Survey n=235 Marketers

Social Media and other interactive marketing channels are expected to show the greatest increase in marketing effectiveness over the next 3 years.

Market Dynamic

CONSUMERS EXPECTATIONS in a DIGITAL & SOCIAL ENVIRONMENT

•  Is your program personalized for your audience based on their preferences?

Personalized

•  Does your program engage and add value to your audience?

Engaging

•  Are you leveraging digital technologies for real-‐2me communica2ons and connec2ons with your brand?

Real Time

•  Do you allow your audience to par2cipate in and contribute to marke2ng ac2vi2es?

Par2cipatory

•  Are you providing value and u2lity to your audience beyond your product aOributes?

Useful

5 Ways To Be Compe22ve within Digital Marke2ng

PERSONALIZED, REAL TIME, TECHNOLOGY ENABLED, HELPFUL

Domino’s shows you the real-‐2me status of your custom built pizza, from order to delivery

PARTICIPATORY

REAL TIME, ENGAGING

Personalized

Engaging

Real Time

Par)cipatory

Useful

ü

ü

ü

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REAL TIME, PRODUCT PERSONALIZATION TOOL www.mykleenextissue.com

www.shaveeverywhere.com became the #1 seller in Personal Grooming category on Amazon.com for the first two months aver campaign launch.

ENTERTAINING?

•  Does your program align itself with a philanthropic purpose and invite your audience to give back to a larger cause?

Socially Conscious

•  How are you using digital technologies to help service your audience needs?

Helpful

•  Does your program allow for interac2ons between your audience and their community?

Social Interac2ons

•  How does your marke2ng program influence the product development process?

Product Development

•  Your audience will pay for good content, are you providing it to them? Content

5 Ways To Be Compe22ve in Social Marke2ng

Within 48 hours of the Haiti earthquake the app was built and available

REAL TIME

The Obama campaign in 2008 generated a massive stream of mo2va2ng, engaging content that they successfully distributed across email and social media plaxorms; YouTube, TwiOer and Facebook and their own websites

SOCIAL – CONTENT is KEY!

By the 2012 campaign in 2012 Obama used Facebook as it’s primary plaxorm to engage volunteers


The engagement results were DRAMATICALLY different!


Obama averaged almost 20mm YouTube views over 4 weeks leading up to the elec2on and WON with only 61mm total votes


Goal: Help BOTH the Consumer (save money) and the Brand (make money)

PERSONALIZED, HELPFUL AND PROFITABLE!

Engaging

Real Time

Par)cipatory

Useful

ü

ü

ü

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Personalized

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PERSONALIZED, REAL TIME, HELPFUL

HOW MOBILE & TABLETS DEVICES ARE CHANGING THE USER EXPERIENCE

The Mobile Explosion

Consumer mobile device penetration increased 10x in the last two years

-- Manhattan Research

2013

The year when the number of Mobile internet users SURPASSED the number of Desktop internet users.

--"Internet Trends," Morgan Stanley.

US Smartphone Adop2on is Entering the Late Majority Phase

source: Horace Dediu. Asymco

Size Really Does MaXer!

Where are we Headed? Wearable technology that extend the reach of brand marke2ng and interac2ons to your body

Flexible Displays

Wearable Technology

PERSONALIZED, HELPFUL

Final Thoughts

Technology will con2nue to change our lives

The Future will be very cool!

the future of digital marketing for higher education

Education