Learning Outcomes the impact of digital resources on marketing, the key structural characteristics & differences between digital resources, the evolution in focus of electronic & digital marketing from ‘channel push’ to ‘market pull’ the key trends in digital marketing: Internet advertising, viral marketing, email marketing, search marketing, social web marketing, gaming and mobile marketing. the wider influences governing the effectiveness of a digital marketing strategy. How could an online community use social networks to oppose an international music franchise and make British music history? https://www.facebook.com/ratm4xmas Many of the social interactions & information exchanges are facilitated by digital technologies. In North America, Western Europe and Oceania/Australia, Internet penetration and adoption stands at approximately 63% (Internet World Stats, 2009). With this has come development and adoption of digital resources, from mobile technologies to internet and social web resources such as blogs, social networking sites, wiki’s and similar multi-media sharing services Altering consumer expectations of their interaction with the web or an organization and also changing how we market in the digital space. How big is Digital Marketing and what does it do for the user Electronic Marketing It is not limited to one specific type or category of electronic technology (e.g., Internet, TV), but includes both older analogue and developing digital electronic technologies. Digital Marketing Using specifically digital electronic technologies and channels (e.g., web, e-mail, digital TV, wireless media and digital data. Direct Marketing Is a type of marketing that attempts to send its messages directly to customers. Not all direct marketing is electronic or using digital technologies (e.g., direct mail). Interactive Marketing Refers to marketing that moves away from a transaction-based effort to a conversation (i.e., Two-way dialogue) and interaction. Not all interactive marketing is electronic (e.g., face-to-face sales). What would you say are the main Digital Marketing Methods Social Web Marketing Internet Marketing Internet Advertising Advergaming Types Online Retailing Search Engine Marketing Email Marketing Mobile Marketing Viral Marketing It is important to understand how the many and varied digital resources differ across key structural properties. This helps to make a more informed decision about which resources are most suitable for the achievement of your marketing objectives. Web 1.0 Web 2.0 Marketing Focus Website or Content User/Participant Approach Push Push & Pull Market Role Audience Participants Market Behviour Passive Passive & Active Interactivity Machine Interactivity Person and Machine Interactivity Product Offering Production Co-production Communication Model Monologue (1-to-many) Dialogue (1-to-1, Many-to-Many) Control External Pacing External & Internal Pacing Marketing’s Digital Evolution What people say... "The traditional marketing model we all grew up with is obsolete.” James R. Stengel, CMO, P&G "Mass marketing no longer works. It's the end of brand positioning as we know it.” Larry Light, CMO, McDonalds “To me, the challenge is not awareness, the challenge is engagement." John Hayes, CMO, American Express "JWT client Ford now spends only 30%-40% of its ad. budget on traditional advertising, compared with as much as 80% five years ago." Bob Jeffrey, CEO, JWT How would you advertise a product or service on the Internet Used to: Increase website traffic (i.e., click-through) Encourage product trial, purchase, & conversion Encourage repeat purchase activity & referral Eg: display advertising, classified listings, rich media ads, search marketing. Trends to 2009 Online advertising spend was £3.5 billion in the UK, a 4.2% rise from 2008, exceeding TV advertising spend for the first time. ⇑ ⇑ ⇩ ⇩ Growth in SE marketing (up 9.5% to £2.15 billion) Growth in video advertising (up increasing 140%, generating £28.3 million). Decline in display advertising (by 4.4% in 2009), Decline in classified advertising (by 5.3% to £677.4 million down from £715.2m in 2008). What are the key considerations when considering for advertising on the net Cost Format Intrusion Key Considerations Location Personalization What are the key considerations when advertising on the net Search Engine Marketing SEM is a set of marketing methods to increase the visibility of a website in search engine results pages (SERPs includes search engine optimization (SEO), paid placement (PPC), contextual advertising, digital asset optimization paid inclusion Paid listings Pay Per Click (PPC) Natural or organic listings Search engine optimization (SEO) <title> </title> tags <meta name=“description = > tags Or Snippets from page Tip: Craft engagement messages for search results page Test with site: www.domain.com <keyphrase> Helps to sell product &: Build a brand's relationship with a consumer Create a sense of trust Retain loyal customers Generate revenue as well as referrals. Make the campaign targeted – 80/20 rule Gain and Confirm Permissions Personalize Message and Copy Subject line Source Address: ‘From’ Test, test, and retest Track, report, and mine results Collect and follow up responses Spam blocking Sources: IMT (1999); Glass (2006), Westlund (2009) How can the ‘net facilitate viral marketing... Word of mouth (WOM): internet & mobile technologies have increased it’s spread & speed of transfer with ease & low cost. Viral marketing: any strategy that encourages individuals to digitally pass on a marketing message to others, creating the potential for exponential growth in the message's exposure & influence. Source MRB Effective viral marketing campaigning: 1) Give away useful products or services 2) Provide effortless transfer to others 3) Scales easily from small to very large 4) Exploits common motivations and behaviours 5) Utilizes existing communication networks 6) Takes advantage of others' resources Example of Viral Campaign - Obama’s presidential campaign, 2008 The Results 1 million+ Facebook fans, 50,000 + YouTube search results & endless Twitter chatter In one week Dec ’09, sold over 502,672 copies of it’s single making it Christmas No.1 in ‘09. Raising over £101,517.48 for Shelter. 2 new landmarks becoming: the UK’s first download-only Christmas number 1 notching up the biggest one-week download sales total in British chart history. “This is a truly remarkable outcome and possibly the greatest chart upset ever”. Gennaro Castaldo HMV Social Web Marketing (SWM) is a form of digital marketing using the social web & social media for marketing activities - sales, PR, research, distribution, customer service. Aim is to build a brand’s Social Brand Equity. Social capital, is the relations among individuals (Coleman, 1988). Twitter Facebook The most favoured tools are: Foursquare Social networks (Facebook, LinkedIn), Followed by video sharing sites Google+ (YouTube), Instagram Image sharing sites (Flickr), Blogging platforms (WordPress) and Blogs Microblogs (Twitter and Seesmic). LinkedIn CMO Survey (2009) Yelp YouTube Delicious & Digg Sharing Control Conversations & Dialogue User-generated Content Principles Community & Social Networks Co-created Content Why is the mobile a leading digital marketing tool The use of computer and video games as a medium in which to deliver advertising. Advergames consist of both membership models of multiplayers (e.g., MMORPG such as World of Warcraft), Apps downloaded to a mobile device or added to an online social network Viral games wherein the game is passed on from user to user on the web. Most advergames require users to register, allowing for the collection of data for marketing research and other marketing initiatives It is about “perceived playfulness” from digital resources. Perceived playfulness is the degree to which current /potential users believes that the technology will bring a sense of pleasure. It is an intrinsic motivator, influenced by the users experience with the digital environment. 2 rising trends in digital gaming platforms are social networks and mobile phones. Social Networks ◦ Applications such as ‘FarmVille’ or ‘Bejeweled’ which induce users to play games with their friends. ◦ Facebook now has had more than 52,000 applications, allowing Facebook users to send each other virtual hugs, share movie picks & play games ◦ Every month more than 70% of Facebook users engage with platform applications, with more than 9,000 applications having over 10,000+ monthly active users (Facebook, 2010). Mobile Phones ◦ As at January 2010, Apple’s App Store was serving over 100,000 downloadable iPhone apps, with overall, iPhone owners worldwide having downloaded over 2 billion apps. Games appear to be the hottest items in the Apple App Store. Jurisdiction: ◦ Where does digital marketing activity actually take place? Ownership: ◦ Who owns the content we create and share? Permissions: ◦ Do you have the right permissions to upload and share content? Security: ◦ How secure is the data and information you share? Accessibility: ◦ Does everyone who wants access have access? Consider the impact of digital resources on marketing. Appreciated the key structural characteristics across which electronic and digital technologies differ. Understood the evolution in the focus of electronic and digital marketing from ‘channel push’ to ‘market pull’. Discuss key trends in digital marketing: Internet advertising, viral, email marketing, search marketing, social web, gaming & mobile marketing. Outline the wider considerations that influence the effectiveness of a digital marketing strategy. General Electric GE and LinkedIn What do you think LinkedIn offers the business What does LinkedIn’s social media platform offer the business-to-business and business-to-consumer user What benefits has GE derived from using LinkedIn? How well did GE exploit the technologies made available to them by LinkedIn? If you were starting your own service business providing services to your niche what forms of social media would you employ? Explain the reasons for your choices. What lessons can we learn from social media marketing to take away & apply elsewhere?