Digital Marketing in a Downturn

eBizITPA – March 26, 2009

The old playbook…

―…build a recession

marketing plan based

on the firm‘s strategic

capabilities‖

―…response to the

recession varies by

geography, sector and

firm size‖

Crisis In Mass Marketing 18%: Proportion of TV advertising campaigns generating positive ROI

54 cents: Average return in sales for every $1 spent on advertising

256%: The increase in TV advertising costs (CPM) in the past decade

84%: Proportion of B2B marketing campaigns resulting in falling sales

100%: The increase needed in advertising spend to add 1-2% in sales

14%: Proportion of people who trust advertising information

90%: Proportion of people who can skip TV ads who do skip TV ads

80%: Market share of video recorders with ad skipping technology in 2008

95%: The failure rate for new product introductions

117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965

3000: Number of advertising messages people are exposed to per day

56%: Proportion of people who avoid buying products from companies who they think advertise too much

65%: Proportion of people who believe that they are constantly bombarded with too much advertising

69%: Proportion of people interested in technology or devices that enable them to skip or block advertising

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Source: Marketing Leadership Council - www.mlc.executiveboard.com

Reprioritize marketing vehicles

Reevaluate the

effectiveness of current

vehicles

Shift 10-15% into new

media

Conduct a marketing

audit, don‘t just do

guesswork

Where Everything Is Headed

2009 2050?

Digital

Non-Digital

Today

Source: Google1996

Over Half of Online Adults…

75% of online adults

18-24 have a profile

on a social network site

57% of online adults

25-34 have a profile

on a social network

All the Digital People

The Writing is on the Web

Forrester: By 2008, online marketing activity will be more ubiquitous that anything except in-person events (including sales calls!)

DMA: In 2008, online marketing efforts will be the dominant media for B2B initiatives

CMO Council: B2B decision makers spend 5+ hours every week researching product information online

KnowledgeStorm: 89% of business & IT professionals state that online content has a major impact on their vendor preference and selection

In 1965, it took three TV ads to reach 80% of adults by 2002, it required 117

Popular Digital Marketing Tactics

Source: Forrester,

August 2008

360 Digital Marketing World

Online Media

NewsCommunity

sites

Special Interest

EmaileNewsletterseCardseMail

Wikis

FolksonomySocial

Bookmarking

Digital Devices Phones DVR

(Tivo)PDAs Game

ConsolesMicrocasting

VBlogs

Digital Radio

WebcastingPodcasting

Syndication

Real Simple Syndication (RSS)

Content Partnerships

ConversationsBlogs

Listservs

Message Boards

Chat Rooms/Events

IM

Text-messaging

Photo Blogs

Viral Content

Web SitesPress Rooms

w/RSSOnline

AdvertisingGames & Contests

Search

Keyword Marketing

Blog Aggregators

Blog Search Engines

Search Engine Optimization

Manifestos

eAlerts

Citizen Action

Meetups

Source: Ogilvy

The Digital Sales Funnel

Source: InTouch

The Conversational Sales Funnel

be aware

consumer generatedmarketer generated

consider

buy use

form opinion

talk

games

crmsearch

directories

educational marketing

event and sponsorship marketing

wom/ social networks

?

?

???

advertising, PR, publishing

mobile marketing

Source: Digital Voodoo

Six Digital Strategies for

Surviving the Downturn

1) Make it ALL Accountable

2) Build Your Addressable Customer Base

3) Digital Intimacy (stay close to your customer)

4) Start and Keep doing Search (SEM+SEO+SMO)

5) Engender Trust

6) Don‘t ignore the power of Social Media

1. Digital Accountability

“Marketing executives are seeking accountability

and measurable results. Data-driven marketing is

an increasingly important component of corporate

marketing campaigns.”

—Mike Iaccarino, chief executive, Epsilon, in a press release

Even online marketers show room for improvement in

accountability. In a Marchex-commissioned survey

conducted by Sterling Market Intelligence in October

2008, only 25% of national advertisers said they were

measuring ROI for their online marketing campaigns.

Success Metrics

Reach

How many hear your message?

Acquisition

Who’s attention did you get?

Conversion

What information did you gather?

Who can you contact as a “lead”?

Retention

Who follows you after the acquisition?

Build Your Value Funnel

Define your critical actions

Map against your sales

process/sales funnel

Track to conversion

Wash, rinse, repeat

2. Build Your Addressable Customer Base

Everything = Data, ―CRM mentality‖

Capture mechanisms at every turn (capture

attention & capture data)

Get comfortable with the data – it‘s all about the

data!

Setup data-driven trigger points to nurture your

prospects along

For Example: In 2001, ADC communications, a competitor to Lucent, Cisco and Nortel

saw it’s sales degrading to the point of a 27% dip. The immediately retrenched, changed

course, implemented a recession marketing & sales strategy and gained market share on

each of their major competitors that they retain to this day.

Jeep‘s ―Jeep 2.0‖ Strategy

1. Portals (using contextual/Google and behavioral/AOL targeting)

2. An IM avatar development program

3. Online video - A new campaign site which was redesigned to host rich-media offerings like video vignettes

4. Virtual "test drives―

5. Ads on free music download sites with viral marketing (pass this song on to your friends capability)

6. Microsites

7. Traditional TV with product placement

8. Events and bowl games - An online fantasy football sponsorship w/print component

9. Print ads

Jeep –

The way beyond trail

A choose your own adventure

interactive film

User integrates him/herself directly

into the video and story reflects

their personal registration selections

Program provides clues in exchange

for ―tell a friend‖

Product directly integrated and

demonstrated through plot line of

film

3. Digital Intimacy

Build your tribe

E-Mail: Still a Great Medium for Staying in Touch

Meet them in their medium

Build brands & communities

of fans, don’t just advertise

This is the paradox of ambient awareness. Each little update — each

individual bit of social information — is insignificant on its own, even

supremely mundane. But taken together, over time, the little snippets

coalesce into a surprisingly sophisticated portrait of your friends’ and

family members’ lives, like thousands of dots making a pointillist painting.

- Clive Thompson, NYT Magazine

Build Community in Niche Networks

Over 350,000 pets

Approx. 700 new each day

Beyond Students

Real Estate

InvestmentsMoms

My Space Politics

4. Start and Keep doing Search (SEM+SEO+SMO)

Search provides a strong, highly

measurable ROI for marketing dollars

spent.

Search garners click-through rates that

exceed all other forms of online

advertising.

Search offers marketers the potential for

immediate sales online, as well as for

online and offline sales at a later time.

Search can even enhance brands.

Over 80% of consumers and

businesspeople engage in on a regular

basis

Search is Integrated…so Integrate It!

(almost) Everything

digital/web based can

contribute to search

Integrate search

components into ALL of

your marketing (PURLS,

―Google This‖

Engender Trust

Trust is the currency of brands, and it has never been harder to

create or hold on to.

Reviews, recommendations, friends, experts, thought

leadership…all trusted!

Do everything you can to make your product and customer

service as good as they can possibly be.

Emphasize listening over loud-speaking.

Adapt your marketing messages to be more real.

Consider building a community where consumers can weigh in.

Take the bold move of embracing customer ratings and

reviews.

Trusted Sources

Become a Thought Leader

Be Generous With Your Knowledge Share beyond the marketing speak

Be Consistent Calendar your activities – daily, weekly, monthly

routine

Always Deliver Value Listen, think, revise, teach, repeat

Take A Stand Take your strong positions to market

Focus On The Long-term Benefits Track your results in months & years

Engage in Social Media

―Social Media is

people having

conversations

online.‖

The conversations are powered by…

Blogs

Widgets

Micro Blogs

Online Chat

RSS

Social Networks

Social Bookmarks

Message Boards

Podcasts

Video Sharing Sites

Photo Sharing Sites

Virtual Worlds

Wikis

(…just to name a few)

A Few Examples

Social Media for Small Business

Caminito Argentinean

Steakhouse is a single-

location restaurant in

Northampton, Mass

Using a website, local ads,

blogging, video, Twitter,

MySpace and other digital

tools to drive business

Just Your Average Social

Media Steakhouse…

In addition to the blog, Caminito leverages social media by the following means:

Prime cuts blog and YouTube TV channel, including videos on Viddler

Consistent PR

A monthly e-newsletter is sent to an opt-in email list to announce special events, special menus

and more.

Caminito is very active on Yelp! and includes a link on its website to encourage users to leave

reviews there.

Web analytics are monitored at least weekly and sometimes daily to see where traffic is

coming from, judging return on investment for certain campaigns and promotions and make

site enhancement decisions.

The restaurant has a MySpace page to reach the college age crowd with several area

universities and colleges nearby. They post bulletins, blog posts and events there.

Caminito also uses Upcoming, Facebook, Twitter, Plurk and FriendFeed, networks through the

Answers section of LinkedIn and has a Flickr account for restaurant-related images.

Caminito‘s World…

The Social Homebuilder

Martell‘s Holistic Strategy

Holistic strategy, not just

social media

Advertising, customer

relations, vendor relations,

public relations, website

execution, social media

Strategic process of defining

their audience, establishing

their objectives, developing

strategies to accomplish

those objectives with the

audience and then decided

the tools

Indium Social Media Strategy

25% reduction in marketing spend

Major account wins

Entire organization involved

in the ‗community‘

B2B Discovers Online Videos

It is my goal to meaningfully engage my audience and draw them in.Video offers anenhanced ability to do so (especially when compared to static posters/graphics). Rick Short, Indium

Multiple Uses

Multiple Customer Touch Points

Integrated Social Media Strategy

Goodwill Repositioning

Blog

YouTube

MySpace

ebay Store

A Few Good Stats

Over 11,500 unique visitors to the virtual fashion show 9/12 launch

Over 42,000 page views

16% of fashion show visitors have been converted into online Goodwill shoppers

Fashion Show Visitors from 31 countries and 48 states plus DC

48% of fashion show visitors are from the DC, MD, VA region (the area we serve)

Blog is averaging between 600 & 700 visitors a week

5.6% of blog visitors are being converted into online Goodwill shoppers

Blog visitors from 77 countries and all 50 states

Brick & mortar stores during the two weeks following the launch of the fashion show:

Customer count + 6.6%

Rack sales (clothing) + 16.5%

Total sales + 8.275%

http://dcgoodwillfashions.blogspot.com/

So, Now What?

Digital & Social Media Strategy in 8 Parts

Part 1: Learn to Listen

Part 2: Join the Conversation

Part 3: Start a Blog (or… Be the Media)

Part 4: Tap into Your Community

Part 5: Crowdsource Your Next Big Idea

Part 6: Harness the Power of Social Networks

Part 7: Share Photos and Videos Online

Part 8: Measure Your Success Online

Learn to Listen

Where are your customers online/offline?

Blogs, Social media tools (e.g. LinkedIn Answers), Discussion Forums, Twitter, etc…/Events

Monitor these conversations:

Find your brand using Google Alerts, Keotag.com, Boardreader.com and Technorati.com

Use a central tool to track the different conversations happening around your company. Most online conversations are RSS enabled, barring a few Yahoo! groups that don’t support RSS. Use a RSS reader (e.g. Bloglines.com) to gather all these conversations into a central repository and create a folder that you check on a daily basis.

For Example: Best-in-class organizations pursue social media listening as a daily

discipline and have a response strategy to engage in the conversation if necessary.

Join the Conversation

Be transparent. Be open and

honest in all communication.

Be ethical. Live by the WOMMA

Practical Ethics Toolkit

Be relevant. Share information

and perspectives that are valuable

to the online community

Personalize and be personable.

Address negative discussion

head-on.

Court evangelists & advocates.

Even if you‘re not ready to join the conversation, it pays

to have a sound strategy for dealing with any social

media conversation taking place about your brand.

Be the Media (or, Start a Blog)

Feature a link to the

blog on your company

home page.

Employ a team of

bloggers.

Provide guidelines to

bloggers.

Share company news and thought leadership.

Post a combination of written word, photos and video.

Link generously to other digital influencers.

Allow moderated comments to foster a two-way conversation.

Tap Into Your Community

Community members can

be worth 30% more

Tap the power of your

customer base

Increase long-term

lifetime value

Involve them in

something meaningful

Know what customers

really want to buy

Crowdsource Your Next Big Idea

Define an idea

management process.

Design and develop the

online community.

Promote the community

with your customers.

Invite them to contribute.

Post questions to spur

their thinking.

Celebrate great ideas.

A Crowdsourced Business

Seventh Generation, a leading green consumer

products company, used a crowdsourcing approach to

design an eco-friendly diaper bag as part of its Wee

Generation campaign. Mommies, children and leading

environmental experts collaborated to design a state-

of-the-art, limited edition bag, which Seventh

Generation now sells.

Harness the Power of Social Networks

Connect with your customers

in their network.

Facebook, LinkedIn, MySpace,

etc…

Build applications for them in

their networks.

Assign someone in your

organization as the

‗community manager‘.

If you build it, they won‘t

come – put together a sound

seeding strategy

Share Photos and Videos Online

Create a brand channel on

YouTube.

Upload your company‘s videos to

your YouTube channel

Adds to your search results

• Promote your company‘s YouTube

channel or specific videos on your

Web site, emails, newsletters.

Engage your audience by

encouraging them to add

comments, rate videos, share

video.

Update your content frequently to

keep it fresh. This is critical to keep

people coming back.

Measure Your Success Online

The value of social media presence can be calculated by simple methods:

ReachHow many people are influenced by our social & digital media efforts?

AcquisitionHow much of their attention have we acquired through connections, website visits, and time spent engaging with us?

ConversionHow many have we ‘converted’ toward the ultimate goal (subscription, sales, leads, registrations, evangelists, etc.)?

RetentionAre we reducing customer churn, lowering our overall cost to serve, increasing the purchase value/volume/frequency, and growing the lifetime value of our customer base?

MEASURE

Another take on the process of measuring social media value

Source: Forrester Research

“Every brand needs to be relevant and part

of a community. They need to open a

dialogue with their consumers, but they also

need to be prepared for what could be

negative feedback and I don’t think all

marketers are ready for that.”

- Bob Ivins, EVP, comScore

How to control millions of inaccurate

and divergent conversations ?

YOU DON’T

Consumers are beginning in a very real sense to own our brands and participate in their creation … We need to begin to learn to let go.

A.G. Lafley, CEO and Chairman of P&G, October 2006

(cc) Lynette Webb, 2006

Five Keys to Social Media Success

Be Generous With Your Knowledge Share beyond the marketing speak

Be Consistent Calendar your activities – daily, weekly, monthly

routine

Always Deliver Value Listen, think, revise, teach, repeat

Take A Stand Take your strong positions to market

Focus On The Long-term Benefits Track your results in months & years

Social Media Homework!

Find blogs in your area of interest

Seek out podcasts for marketers (or whatever you fancy) in iTunes or Podcast Alley

Sign up for a free RSS reader (Bloglines, Google Reader) and consume feeds

Join LinkedIn

Anyone not visited YouTube yet? Look for your favorite things there too

Social Media Extra Credit

Become a regular commenter on blogs that interest

you

Join Facebook & ask a question on LinkedIn

Start a blog of your own on a topic of your choice

Create a podcast

Switch over some of your newsletter subscriptions to

RSS feeds

Get a Flickr account to share photos

Digital Marketing in a Downturn

Q & A

Need help after the presentation? Email dana@marketingsavant.com