e-Marketing Communications & the Growth of Social Media

Dilip Mutumdilip.mutum@coventry.ac.ukwww.twitter.com/admutum

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Growing importance of e-media•April 2006: 68.4 million domain names•Feb 2011: 205.3 million domain name

registrations (https://verisigninc.com/assets/domain-name-report-feb-2011.pdf)

•Worldwide: 1 billion people connected to the Internet (291 million in Europe)

•Online ad expenditure has overtaken TV for the first time in the UK (UK Online Adspend -

http://www.iabuk.net/en/1/adspendgrows300909.mxs)•Online advertising expenditure grew 4.6%

to £1.75 billion in H1 2009

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•Generating traffic to the site•Generating brand awareness•Shaping brand image and brand attitudes

•Generating trial•Creating loyalty

E-communications objectives

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• Brand websites▫Micro-sites

• On-line advertising▫Banners, buttons, pop-ups, interstitials,

superstitials▫Keyword buying ▫Affiliate marketing (networking)▫Advertorials▫Content sponsorship▫Homepage restyling▫Anchor deals

E-marketing tools

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On-line advertising formats –Performance and viewers’ annoyance

Table Performance of, and viewers’ annoyance at, on-line advertising formatsBased on: Elkin, T. (2003), ‘Size matters; so does prize’, Advertising Age, January, 13; Dynamic Logic (2001), ‘Branding 101: an overview of branding and brand measurement for online marketers’, (March), www.dynamiclogic.com

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•On-line events and seminars•Advergames and on-line games•Viral marketing•On-line contests and sweepstakes•E-sampling and e-couponing•E-mail marketing

E-marketing tools (Continued)

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•Microsites to reinforce new product or brand introductions

•Generate traffic to websites via advertising, direct marketing communications, sponsorship, public relations…

•Use websites to build and enrich databases

•Use interactive mobile advertising and iDTV-advertising to enrich databases and gain consumer insight.

Integrating e-communications in IMC

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•Evolving trend in marketing whereby marketing has moved from a transaction-based effort to a conversation

•Defined as the ability to address the customer, remember what the customer says and address the customer again in a way that illustrates that we remember what the customer has told us (Deighton, J. (1996). The future of interactive marketing. Harvard Business Review, 74(6), 151-161)

• Interactive marketing is not synonymous with online marketing / e-marketing

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Interactive Marketing

User generated video

Micro-blogging

Blogs

Wikis

ForumsPodcasts

Photography

Photography

Feeds

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•Homebrew ads, folk ads, open source branding and vigilante marketing

•Self appointed promoters of the brand•Unpaid advertising and marketing efforts,

including one-to-one, one-to-many, and many-to-many commercially oriented communications, undertaken by brand loyalists on behalf of the brand (Muñiz, J. A. M., & Schau, H. J. (2007). Vigilante marketing and consumer-created communications. Journal of Advertising, 36(3), 35-50)

•Firefox, Coca-cola, Nike, Apple iPod, etc.

Vigilante marketing

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Social Networking11

•“Blogs” are the newest and potentially the most attractive online media

•Part of “digital interactive transformation in marketing” ▫ Deighton, J. A., & Kornfeld, L. (2007). Digital Interactivity:

Unanticipated Consequences for Markets, Marketing and Consumers [Electronic Version]. HBS Working Papers, from http://www.hbs.edu/research/pdf/08-017.pdf

Blogs

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Blogs • 70 million blogs are in existence & approx 120,000

new ones are being created worldwide every day▫ Sifry, D. (2007). The state of the live web. Retrieved September 11,

from http://technorati.com/weblog/2007/04/328.html

• US: 8% of internet users keep a blog & 39% percent of internet users read them ▫ Lenhart, A., & Fox, S. (2006). Bloggers: A Portrait of the Internet’s

New Storytellers. Pew Internet & American Life Project, July, 19.

• Europe: 3% (4 mil.) European Internet users actively write blogs ▫ Forrester. (2006). Profiling Europe’s Bloggers: What Marketers Need

To Know Before Entering The Blogosphere. Retrieved 15 July 2008, from http://www.forrester.com/ER/Press/Release/0,1769,1112,00.html

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•Disintermediation resulting in the breakdown of the traditional advertising model

Advent of CGA: Implications

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Mutum, Dilip and Wang, Qing (2010). “Consumer Generated Advertising in Blogs”. In Matthew S. Eastin; Terry Daugherty; Neal M. Burns (Eds) Handbook of Research on Digital Media and Advertising: User Generated Content Consumption (Vol 1), IGI Global, 248-261.

•3 Skypephone launch

▫Prominent UK bloggers contacted.

▫Free samples and review ▫News and reviews

carried on 3mobilebuzz blog (www.3mobilebuzz.com).

Example 1: Hutchison 3G UK Limited

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•Exclusive offers on Twitter.com/DellOutlet•$2 million in sales revenue at since they

started in 2007. • If the indirect sales were factored in,

revenue was estimated to exceed $3 million.

▫Source: http://en.community.dell.com/blogs/direct2dell/archive/2009/06/11/delloutlet-surpasses-2-million-on-twitter.aspx

Example 2: Dell.com

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•Marks and Spencers on Twitter▫ http://twitter.com/MARKSANDSPENCER

•BMW/ Mini – using bloggers and YouTube▫ http://www.youtube.com/user/MINI

• Malene Stanley, KSB kids on Facebook and Twitter▫ http://www.ksbkids.com/▫ http://www.facebook.com/KSBKids

•Barak Obama’s presidential campaign led by Chris Hughes (Co-founder of Facebook)▫ YouTube, MySpace, Flickr, Twitter and Facebook.

Other Examples

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