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Digital Marketing Now: 7 Strategies for Surviving the Downturn
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Transcript of Digital Marketing Now: 7 Strategies for Surviving the Downturn
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eMarketer PresentsDigital Marketing Now:
Seven Strategies for Surviving the DownturnSeven Strategies for Surviving the Downturn
David IankelevichVice President, Sales
January 15, 2009
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Today’s Agenda
• Who is eMarketer
• Economic impact on media spending
• Internet spending
• Seven strategies
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eMarketer Sees and Analyzes Information from Multiple Sources
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eMarketer Sees and Analyzes Information from Multiple Sources
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Media Spending Growth in the USDate 2008 2009
Barclays Capital Dec 2008 -5 0% -10 0%Barclays Capital Dec. 2008 5.0% 10.0%GroupM Dec. 2008 0.3% -3.2%BMO Capital Oct. 2008 -1.1% -1.9%pCiti Investment Nov. 2008 -1.8% -3.6%eMarketer Nov. 2008 -1.0% -3.7%Collins Stewart Nov. 2008 0.5% -2.0%UBS Oct. 2008 2.5% -6.0%Morgan Stanley Oct. 2008 -2.1% -5.0%Myers Publishing Oct. 2008 -1.3% -4.0%Wachovia Oct. 2008 -0.8% -0.8%ZenithOptimedia Dec. 2008 -3.8% -6.2%
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What are marketersWhat are marketersseeing for theirseeing for their
traditional media budgets?g
48% will cut59% will cut85% will cut48% will cutM k ti Sh S t 2008
59% will cutE il S t 2008
85% will cutM k ti P f O t 2008—MarketingSherpa, Sept. 2008
(n = 400 large companies)—Epsilon, Sept. 2008
(n = 175 CMOs and senior marketers)—MarketingProfs, Oct. 2008
(n = 600 marketers)
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US online ad spending growth for 2008
16.9%16.0%
Barclays (Oct '08)
Collins Stewart (Nov '08)
16.0%13.8%
13.0%
GroupM (Dec '08)
Myers (Oct '08)
BMO Capital (Oct '08)
12.0%11.6%
11 5%
p ( )
MAGNA (Oct '08)
ThinkPanmure (Oct '08)
11.5%11.4%11.3%
Morgan Stanley (Oct '08)
Citi (Nov '08)
eMarketer (Nov '08)
10.4%Borrell Assoc. (Nov '08)
Source: eMarketer, Dec, 2008
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US online ad spending growth for2009
14.8%14.1%
13 5%
Jupiter (Dec '08)
Barclays (Oct '08)
M (O t '08)
???13.5%
13.0%10 0%
13.5%Myers (Oct '08)
MAGNA (Oct '08)
BMO (Oct '08)
Collins Stewart (Nov '08) 10.0%10.0%
9.7%8 9%
Collins Stewart (Nov 08)
Wachovia (Oct '08)
Morgan Stanley (Oct '08)
eMarketer (Nov '08) 8.9%7.2%
5.8%5.0%
eMarketer (Nov 08)
Borrell (Nov '08)
Citi (Nov '08)
GroupM (Dec '08) ???5.0%3.0%
p ( )
ThinkPanmure (Oct '08)
Source: eMarketer, Dec, 2008
???
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US online ad spending growth for2009
13.5%13 5%
Myers (Oct '08)
MAGNA (Oct '08) 13.5%
10 0%13.0%
MAGNA (Oct '08)
BMO (Oct '08)
C lli St t (N '08) 10.0%10.0%
9 7%
Collins Stewart (Nov '08)
Wachovia (Oct '08)
9.7%8.9%
Morgan Stanley (Oct '08)
eMarketer (Nov '08)
7.2%Borrell (Nov '08)
Source: eMarketer, Dec, 2008
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% of marketers planning to increase their online ad budget – despite the recession 55% of global marketing execs
26%Forrester (Spring '08)
g pN = 333plan to cut spending on traditional
media in order to fund increased72%Advertiser Perceptions (May '08) N = 1,811
media in order to fund increasedonline efforts
63%
31%MarketingSherpa (Sep '08) N = 400
63%
62%
Epsilon* (Sept '08)
MarketingProfs (Oct '08)
N = 175
N = 600 62%MarketingProfs (Oct 08)
*63% of (175) CMOs said they had increased their online budgets in the past year
N 600
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i h2. Keep doing search3. Don’t ignore the power of branding online4. Stay close to the customer5. Engender Trust
“This is the age of accountabilityfor the marketing profession5. Engender Trust
6. Engage with online video7 Test test test
for the marketing profession.--Robert Liodice, Association of National Advertisers, 7. Test, test, test, ,CEO
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Need to break down the dataNeed to break down the data silos
• Search – Display adsO li Offli di• Online – Offline media
• Online – Offline channels“When the going gets tough, information gives comfort you are on the right track”gives comfort you are on the right track
- - David Lowden, chief executive, Taylor Nelson Sofres,
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online4. Stay close to the Customer5. Engender Trust5. Engender Trust6. Engage with online Video7 Test Test Test7. Test, Test, Test
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online“As the ad industry braces for a d i d 4. Stay close to the Customer5. Engender Trust
deep recession, someone needs to notify the search advertising 5. Engender Trust6. Engage with online Video7 Test Test Test
y gbusiness.”7. Test, Test, Test--Mike Shields, MediaWeek, 10/15/08
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online“As the ad industry braces for a d i d “You can track every cent and 4. Stay close to the Customer5. Engender Trust
deep recession, someone needs to notify the search advertising
yevery click. Search is comfort food for marketers ”5. Engender Trust
6. Engage with online Video7 Test Test Test
y gbusiness.”food for marketers.
--Even Andrews, Forrester Research7. Test, Test, Test--Mike Shields, MediaWeek, 10/15/08,
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Search Ad Spending Growth for
200924.0%
23 0%
Magna
Oppenheimer & Co Inc
2009
23.0%
17.3%
21.0%
Oppenheimer & Co. Inc.
BMO Capital Markets
JP Morgan 17.3%
14.9%
14.0%
JP Morgan
eMarketer
Citi Investment Research
13.7%
13.0%
Borrell
Collins Stewart
13.0%ThisPanmure
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Search is ROI on steroids:
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Search is ROI on steroids:
Search engine optimization (SEO) was rated as the best-performing onlinerated as the best performing online advertising tactic by 57% of online marketers per MarketingSherpa (2007)marketers, per MarketingSherpa (2007)
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online4. Stay close to the Customer5. Engender Trust5. Engender Trust6. Engage with online Video7 Test Test Test7. Test, Test, Test
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#3. Anti-Search: Don’t Ignore the Power of Branding Online
Awareness/BrandingCustomer RelationshipManagement Attitudes,
Interest
CONSUMERPost-sales support Pre-purchase
InformationGathering Fulfillment
support
Gat e gSale/Purchase
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#3. Anti-Search: Don’t Ignore the Power of Branding Online
Awareness/BrandingCustomer RelationshipManagement Attitudes,
Interest
CONSUMERPost-sales support
Marketing opportunityhere to influence online
Pre-purchaseInformationGathering Fulfillment
supporte e o ue ce o eshoppers – whether or
not they choose to use a Gat e gSale/Purchase
ysearch engine
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$25 B OnlineAd Market in 2008% Lift In Conversion Rate When DisplayAd Market in 2008
Awareness% Lift In Conversion Rate When Display
Ads Are Combined With Search:
InterestSearch =
45% ofdollarsDesire
Source: Atlas Digital Marketing Insight, 2008Consumers exposed to both search
and display ads were 56% moreAction
and display ads were 56% morelikely to purchase an Alltel phone, vs.th h j t li k d h d
Source: eMarketer, Nov, 2008those who just clicked on a search ad
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online4. Stay close to the Customer5. Engender Trust5. Engender Trust6. Engage with online Video7 Test Test Test7. Test, Test, Test
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Stay close to the Customer
“M b i ill“Many businesses will turn to the Web to stay in t h ithtouch with consumers during a difficult financial li t Thi i i tclimate. This is going to
be a lifeline.”
--Adam Sarner, analyst, Gartner
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77%77%Teens on social networks in 2008 (eMarketer) 77%Teens on social networks in 2008 (eMarketer) 77%
T i l t k i 2009 81%T i l t k i 2009 81%Teens on social networks in 2009 (eMarketer) 81%Teens on social networks in 2009 (eMarketer) 81%
Affluent (L I tit t M h 2008) 60%Affluent (L I tit t M h 2008) 60%Affluent (Luxury Institute, March, 2008) 60%Affluent (Luxury Institute, March, 2008) 60%
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Look, Listen,, ,Lounge & Learn
A Learn how consumers talk about yourA. Learn how consumers talk about your product or service category• Notice what words and language they useg g y
B. Learn about real or perceived problems with d t t iyour product or customer service
• e.g., Dell’s lesson learned
C. Unleash the wisdom of the customer!
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Look, Listen,Lounge & Learn
A Learn how consumers talk about your“[With our customer service wiki] endA. Learn how consumers talk about your product or service category• Notice what words and language they use
[With our customer service wiki] end users create the value themselves
d k th l f th dg g y
B. Learn about real or perceived problems with d t t i
and seek the value of other end users like themselves.”
your product or customer service• e.g., Dell’s lesson learned--Brad Smith, CEO, Intuit
C. Unleash the wisdom of the customer!
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Look, Listen,Lounge & Learn
A Learn how consumers talk about your“[With our customer service wiki] endA. Learn how consumers talk about your product or service category• Notice what words and language they use
[With our customer service wiki] end users create the value themselves
d k th l f th d
“40% of TurboTax users’ questions are answered by other customers, g g y
B. Learn about real or perceived problems with d t t i
and seek the value of other end users like themselves.”
yand at a higher rate of accuracy.”
your product or customer service• e.g., Dell’s lesson learned--Brad Smith, CEO, Intuit--Brad Smith, CEO, Intuit
C. Unleash the wisdom of the customer!
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Runners send videos images andRunners send videos, images andsongs to their friends, engage
in irt al contests and arrangedin virtual contests and arrangedfor real meetups
40% of visitors become t t Nik ’ hconverts to Nike’s shoes.
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online4. Stay close to the Customer5. Engender Trust5. Engender Trust6. Engage with online Video7 Test Test Test7. Test, Test, Test
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How do you create trust for your brand?
• Make your product and customer service as good as they can beg y
• Emphasize listening over loud-speaking
• Adapt your digital marketing messages to be more real more conversational lessmore real – more conversational, less “marketing-speak”
• Allow for customer ratings and reviews
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• Read Reviews
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• Top products converted at a 49%Top products converted at a 49%higher clip
• Average order size increased 40%
• Read Reviews
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online4. Stay close to the Customer5. Engender Trust5. Engender Trust6. Engage with online Video7 Test Test Test7. Test, Test, Test
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154 million Americans = 80% of Internet users
167.5 million = 87% of Internet users
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Versus watching TV, onlineVersus watching TV, online video viewers are 25% more
d i TV dengaged in TV content and 47% more engaged in the ads47% more engaged in the ads.
--Simmons 2008Simmons, 2008
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US online video ad spending,in millionsin millions
US online video ad spending,in millions
$4,600.0
in millions$3,000.0+44.9%
Growth
$850$1,250
$1,8502.5%
Growth
$324$587
$850
2007 2008 2009 2010 2011 2012 2013Source: eMarketer, November, 2008
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US online video ad spending,in millionsin millions
Gilbane Group: 50% of U.S. firms say US online video ad spending,in millions
$4,600.0they’re using online video, and 46%rate it “very effective” (June ‘08)in millions
$3,000.0+44.9% Growth
y ( )
Broadband video ads allow for
$850$1,250
$1,8502.5%
Growthgreater measurability,
t t bilit d$324$587
$850target-ability andshare-ability!
2007 2008 2009 2010 2011 2012 2013Source: eMarketer, November, 2008
share ability!
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Seven Strategies for Surviving the Downturn
1. Get with the Accountability program2 K d i S h2. Keep doing Search3. Don’t ignore the power of Branding online4. Stay close to the Customer5. Engender Trust5. Engender Trust6. Engage with online Video7 Test Test Test7. Test, Test, Test
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Are marketersmissing the bus?#7 Test Test Test!!!missing the bus?
59% claimed the biggest
#7. Test, Test, Test!!!
Only 24% of U.S. marketers id th i fi t b
Only 24% of U.S. marketers id th i fi t b
the biggest obstacle to
using consider their firms to be
“digitally savvy”.consider their firms to be
“digitally savvy”.digital media was l k fAmong B2B marketers,
only 31% have begun to Among B2B marketers, only 31% have begun to
“lack of experience”“Iterate. “A lot of this stuff (blogs online videoy % g
use Web 2.0 tactics like blogs, social networks and
y % guse Web 2.0 tactics like
blogs, social networks and Don’t pontificate.”
Rishad Tobaccowala
A lot of this stuff (blogs, online video, etc) you just have to try!”
--Michael Metz Senior DirectorSource: Booz Allen Hamilton and ANA, 2007; survey among 184 ANA-member marketers
g ,podcasts to engage buyers
g ,podcasts to engage buyers
--Rishad TobaccowalaChief Innovation Officer, Publicis Group
Michael Metz, Senior Director, Web Marketing and Strategy Cisco
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Are marketersmissing the bus?#7 Test Test Test!!!missing the bus?
59% claimed the biggest
#7. Test, Test, Test!!!
Only 24% of U.S. marketers id th i fi t b
Only 24% of U.S. marketers id th i fi t b
the biggest obstacle to
using consider their firms to be
“digitally savvy”.consider their firms to be
“digitally savvy”.digital media was l k fAmong B2B marketers,
only 31% have begun to Among B2B marketers, only 31% have begun to
“lack of experience”“Iterate. y % g
use Web 2.0 tactics like blogs, social networks and
y % guse Web 2.0 tactics like
blogs, social networks and Don’t pontificate.”
Rishad TobaccowalaSource: Booz Allen Hamilton and ANA, 2007; survey among 184 ANA-member marketers
g ,podcasts to engage buyers
g ,podcasts to engage buyers
--Rishad TobaccowalaChief Innovation Officer, Publicis Group
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Are marketersmissing the bus?#7 Test Test Test!!!missing the bus?
59% claimed the biggest
#7. Test, Test, Test!!!
Only 24% of U.S. marketers id th i fi t b
Only 24% of U.S. marketers id th i fi t b
the biggest obstacle to
using consider their firms to be
“digitally savvy”.consider their firms to be
“digitally savvy”.digital media was l k fAmong B2B marketers,
only 31% have begun to Among B2B marketers, only 31% have begun to
“lack of experience”“Iterate. “A lot of this stuff (blogs online video“Trying is the first step y % g
use Web 2.0 tactics like blogs, social networks and
y % guse Web 2.0 tactics like
blogs, social networks and Don’t pontificate.”
Rishad Tobaccowala
A lot of this stuff (blogs, online video, etc) you just have to try!”
--Michael Metz Senior Directortowards failure.”
Source: Booz Allen Hamilton and ANA, 2007; survey among 184 ANA-member marketers
g ,podcasts to engage buyers
g ,podcasts to engage buyers
--Rishad TobaccowalaChief Innovation Officer, Publicis Group
Michael Metz, Senior Director, Web Marketing and Strategy Cisco
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For more information about eMarketer or f f th lid l t tfor a copy of these slides, please contact:
David lankelevichVice President