Strategic themes in the changing digital advertising landscape Digital Marketing Trends Academy

© 2008 Digital Strategy Consulting & Partners. All rights reserved.

As society undergoes this transformation, what matters to marketers, and why? Engagement is replacing interruption, consumers are playing a role in the creation of the marketing message, and the shift in focus from one media channel to another is well underway. Marketing techniques are changing and at a speed much faster than most firms can accommodate. Digital Strategy’s team have been coaching brand managers on digital marketing strategy since 2000, and in this session we explore our take on the key trends impacting in the medium term.

Strategic themes in the changing digital advertising landscapeDigital Marketing Trends Academy

Digital Marketing Futures – the journey


About this seminar• These notes are from a workshop examining the trends

and models for marketing and advertising in the Digital Networked Society.

• In this workshop we explore how marketing is changing, how the era of interruptive advertising is drawing to a close, and how the marketing sector is responding.

• Supporting material can be accessed online, including • Links to examples of online video content that shows how

brands have positioned themselves as media properties• Reports tracking the changes in advertising spend over time

in the US and UK• Key issues for regulatory groups in the digital sector

…The seminar is intended to raise questions and these should be sent to [email protected]

Research is available for


Executive AcademyStrategic insights for leadership teams

Management coaching and strategy development for media groups in 20 countries


Related material: DigitalStrategyConsulting.com/downloads

Digital Training Academy


Digital historyWhere were you in 1994?

Market insight: The first banner

HotWired and AT&T: 468 x 60 banner October 25 1994.



Google not yet a teenager, but 1 trillion web pages



21.7%

18.7%

11.2% 5.1%

3.3%

0.9%6.7%

15.1%

19.3%

TelevisionPress - DisplayInternetPress - ClassifiedDirect MailDirectoriesOutdoorRadioCinema

Business models of conventional media under threat2008 market share 18.7% (15.3% in 2007)

% share of revenues for January to December 2008

IAB estimates for actual ad spend by format are based on samples of categorised revenue from key IAB members provided by PwC. Data excludes unclassified figures.

Total advertisingTotal advertisingmarket approxmarket approx

££18bn18bn

Source: PricewaterhouseCoopers / Advertising Association / Internet Advertising Bureau / WARC / Radio Advertising Bureau. Directories are estimated.



2009Internet ad spend overtakes TV Within 5 years internet ad spend will exceed 30% of all adspend



Example:Paradigm shifts in marketingToday will last forever(Whether a brand likes it or not)



Today will last foreverTrip advisorA blessing or curse for every hotelier



Today will last foreverHSBC protest from graduates It started on Facebook, archived on BBC news



Paradigm shifts (and challenges)

The shift to engagement from interruption

The first truly global medium

But also…

A conversation with brands

Democratised production of media

Consumer co-creation of advertising

Consumer-selected exposure to advertising

Equality between brands and consumers



What is ‘advertising’ in an

era of convergence with

content?

Rethinking the paradigm


Advertising will be only a tiny part of marketing



Paradigm shiftIt’s twilight in the era of buying time to interrupt



Why advertising will be only a tiny part of marketingMedia snacking grows

YouTubeMade for media

snacking



Media multi-tasking

•7%

•28%

•3%

•9%

•12%

•15%

•10%

•4%

•6%

•18%

•4%

•11%

•14%

•25%

•19%

•6%

•6%

•8%

•5%

•10%

•11%

•20%

•15%

•6%

•3%

•3%

•4%

•9%

•9%

•8%

•8%

•6%

•10%

•4%

•6%

•11%

•10%

•8%

•10%

•6%

•68%

•37%

•77%

•48%

•43%

•23%

•35%

•70%

Watch TV and listen to the radio at the same time

Surf the Internet while watching TV

Listen to the radio over the internet while watching TV

Listen to the radio over the internet while surfing theInternet

Listen to the radio while surfing the Internet

Read newspapers / magazines while watching TV

Read newspapers / magazines while listening to theradio

Read newspapers / magazines while listening to theradio over the Internet

•At least once a day •Once a day to several times a week•Once a week •Once a month•Less than once a month •Never

•How often do you…



Media multi-taskingYou are competing for their divided attention28% surf while watching TV, daily



What are the new approaches?


An example of native digital marketingLetting leaders leadHarnessing blogs effectively



Letting leaders lead with blogsWhy blogging is key in reconnecting people within an organisation

• Blogging builds bridges from leaders to everyone in the firm

• Blogging sparks discussion when the leaders have something powerful to say

• Blogging creates content for audiences from suppliers and journalists to customers and staff

• Blogging gives brands significant control of one message channel



Letting leaders lead with blogsConsumer and business facing corporate blogs

“Telling people what I’m eating and where I’m going. A great way to communicate with internal and external groups. A great opportunity because MDs are normally out of reach.”



Letting leaders lead with blogsConsumer and business facing corporate blogs

Jonathan Schwartz, President, Sun MicrosystemsA powerful and engaging blog, avidly read by tens of thousands of opinion formers



Blogs: When people write about youTesco’s: A supermarket sweep-up?



Letting leaders leadRethinking your staff as the critical audience

• Staff members can be ambassadors or the destroyers of a brand’s image

• Tesco’s staff complained in public on Supermarket Sweep Up before it went offline



Tesco

• An independent blog questioning Tesco’s growing dominance (www.supermarket-sweep-up.com)

• An online community

• People posting their comments



TescoEmployees posting their comments



VideoEvolving(Follow links to example material)



HistoryEverybody takes part in writing today’s history



New approachesInvolving consumers in the marketing process

Persuading consumers to

endorse



Why advertising will be only a tiny part of marketingPersuading people to listen

• Brands need to find where their consumers have moved to

• Brands need to gain permission to be in their space

• Brands need radically new strategies to gain attention and respect

• Marmite is one of the brands switching strategies: on FaceBook there are over 100,000 fans



Why advertising will be only a tiny part of marketingEngagement replaces interruption

• Consumers need reasons to engage

• Advertisers can fund content (BMWFilms.com)

• Advertisers can create tools for customers to use (STA travel’s ‘blog for every traveller’)


Geography: blown to bits



Geography: blown to bitsWhy globalised access to information destroys the scope for national barriers in messaging

• The web cares little for geography

• The location of the customer can be ambiguous (Hotmail)

• The location of the website can be ambiguous

• The payment obstacles for trade have been removed

• Cross-border trade has become part of the fabric of markets

• Consumers seek out non-national content

• Search engines know that relevancy is rarely driven by geography

• English and Spanish sites have a history of skewed geography

• Legislators fail to draw boundaries in cyberspace



GeographyBoundaries are hard to enforce


The journey of marketingHow the discipline evolves next



The journey of marketing“One to all” becomes “one to many”

• Henry Ford’s one to all era“Any car you like as long as it’s black”

• Classic media created the “one to many” model of social grade (ABC1) and simple segmentation (consumer magazines

• The segmentation became more precise as media choice proliferated

But the model was unchanged: broadcast, one message, interruption based marketing



IndividualityPeople crave individuality; databased net-centric consumer marketing will permanently change all our expectations


The ‘Martini’ cultureAnytime, anyplace, anywhere



The ‘Martini’ cultureWhy the networked consumer has ‘different’ needs

• Different mindset

• Different physical spaces

• Different duration of access

• Different size of display

• Different techniques for navigating

• Different manifestations of often similar underlying needs





Post-iPhoneThe real mobile internet begins



TrendsLonger to impact than we expectMuch greater the change when they arrive



TransitionWe are in the early days of transition to the digital networked society



Thank you

DigitalStrategyConsulting.com/downloads



As society undergoes this transformation, what matters to marketers, and why? Engagement is replacing interruption, consumers are playing a role in the creation of the marketing message, and the shift in focus from one media channel to another is well underway. Marketing techniques are changing and at a speed much faster than most firms can accommodate. Digital Strategy’s team have been coaching brand managers on digital marketing strategy since 2000, and in this session we explore our take on the key trends impacting in the medium term.

Strategic themes in the changing digital advertising landscapeDigital Marketing Trends Academy

Digital Marketing Futures – the journey to come



Making sense of the digital world

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Strategic themes in the changing digital advertising landscape Digital Marketing Trends Academy

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