Digital Marketing: Digital Marketing:

The Shift Age - Where the Industry The Shift Age - Where the Industry Needs to Go Needs to Go to Reach Today’s Consumer to Reach Today’s Consumer

Presented by John Pittman Vice President of Marketing

Digital MarketingDigital Marketing

Digital Marketing is the promoting of brands using the Internet, mobile and other interactive channels.

Digital Marketing Digital Marketing is the practice of promoting products and services using database-driven online distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner.

Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor

Digital MarketingDigital Marketing

At its heart, digital marketing centers around the Internet, which has become both a communication vehicle and a very powerful marketing medium as the recent Doubleclick acquisition by Google demonstrated.

The Internet can be used both to push a message to someone like email, IM, RSS, or voice broadcast, as well to “pull” content serving a banner ad and Pay Per Click search terms. Digital marketing, therefore, can be thought of as the combination of push and pull Internet technologies to execute marketing campaigns.

Digital Marketing Fun FactsDigital Marketing Fun Facts

The number of organizations spending between 25 and 50 percent of their marketing budget on digital media will increase by more than 40 percent over the next five years.

While just 10 percent of organizations currently allocate comparable funds to digital marketing, the figure will rise to 51 percent in 2013. 

The survey also found the percentage of organizations that will spend more than 50 percent of their marketing budget on digital media rising from 4 percent in 2007, to 19 percent in 2013.

"While some are already experimenting with it, I think we will see over time that organizations will start to replace traditional media for digital alternatives."

The survey also found that social marketing and networking opportunities, such as Facebook, were vastly under-utilized.

"There really needs to be a widespread shift of marketing understanding as we enter the digital media age," says Arthur Spanos, Next Digital managing director.

"In many circumstances, it's a case of organizations not understanding digital media applications and how they can benefit their brand and engage their consumers.

"Search Engine Optimization (SEO) and Search Engine Marketing (SEM) are other areas where organizations could significantly improve reach and exposure to their target audiences and drive substantially more traffic to their website,"

Digital Media OpportunitiesDigital Media Opportunities

In summary the four main themes regarding opportunities Digital media have to offer would be:

 · Personalized/Targeted/Cost effective  · Reach (in many places and states)  · Rich engaging brand and relationship enhancing

interactions  · Measurability of digital media initiatives

Digital Marketing ToolsDigital Marketing Tools

Valuable websites:www.clickz.comemarketing.com

Check out these interactive tools designed for digital marketers.

CPM CalculatorThe CPM Calculator helps determine your online advertising costs, cost per 1,000 impressions, and the number of exposures. Check out this ClickZ classic.

CPA CalculatorUse this ClickZ/Dapper calculator to figure out your cost per acquisition (CPA) for a marketing campaign based on several variables. CPA is defined here as how much money it takes to get a product or service sold, a lead generated or some other action.

Flashback WidgetThe ClickZ Flashback widget offers ClickZ News, Stats, and Features archives, drawing connections to the news of the day. Grab it for your site today!

Website Optimization ROI CalculatorThe ClickZ/ZAAZ Website Optimization Calculator allows you to forecast a potential return on investment by submitting just a few details

Recent National Recent National SurveySurvey

What 3 digital marketing channels & tactics will you emphasize in 2009?”  

Blogging (34%)Microblogging (Twitter) (29%)Search engine optimization (28%)Social network participation (Facebook, LinkedIn) (26%)Email marketing (17%)Social media monitoring & outreach (17%)Pay per click (14%)Blogger relations (12%)Video marketing (10%)Social media advertising (7%)

It is interesting to note that out of the top 10 tactics, 6 fall into the category of Social Media Marketing.

Are we fishing

for today’s players with the

right tools?

Shift Change - A Lot Has Happened in 20 Years

Television: TV networks lost their dominant position.

Music: Albums to cassettes/8-tracks to CDs to digital.

Newspapers: At your doorstep to in your in-box.

Books: The library to bookstore to Amazon to Kindle.

Computers: Clunky desktops to laptops to hand-held.

Internet: Dial-up, DSL to in the clouds.

Lotteries Need to Move with the Times

For instance, when it comes to how we use our phones -  One in five (19%) mobile phone users now have a Smart

Phone…and about half (49%) of all cell phone users now say they plan to purchase a Smart Phone in the next two years.

Among Smart Phone Users…

18% have downloaded or looked at maps or directions online; up from 11% in 2007.

16% have searched the Internet for products or services in their local area; up from 10% in 2007.

14% have obtained information about movies or other entertainment; up from 8% in 2007.

10% have connected with a social network, such as MySpace or Facebook; up from 3% percent in 2007.

Mobile Marketing View Survey

Why Mobile Matters

Technology Has Increased Our Connections

• Sizeable numbers of lottery players can access the Internet via their cell phone or other wireless-enabled mobile device.

– A majority of that key 18-34 year-old demographic can.

• Almost one in five (19%) lottery survey respondents said that they would consider buying a lottery ticket via their mobile device.

– Nearly three in ten 18-34 year-olds said they would consider buying the lottery this way.

– These numbers rise as the Powerball jackpot climbs.

• Today’s solutions for Lotteries…– Mobile– Internet– Website– Interactive

• Today, connectivity is happening “on the screen” and not at the corner store. People now have two realities – “reality” and “screen reality”

Lotteries remain a trusted brand; the question is how will they be

positioned for the future of gaming.

Intralot Research 2009

81%

55% 56%

24%

70%59% 55%

18%

0%

20%

40%

60%

80%

100%

Friends,family,other

people Ads EditorialOnline

Resources

US

Global

The Who – Going Mobile (1971)

Today’s Phones

Multi-tasks; multi-environments…

• GPS

• Video/Music

• Pervasive computingPervasive computing is the next generation computing environments with information & communication technology everywhere, for everyone, at all times.

• Real-time information

• New look of information

• Users choose time & place

Lottery Can Tap into GPS Enabled Information

• Brands can serve information based on location or context.

• iPhone apps use GPS to give users real-time information right where they are.

• Lottery can use GPS to tag “hot spot” retailers.

• Users can experience the product “on the go”.

Smartphones power the trend Smartphones power the trend

As smartphones such as iPhone and BlackBerry take off, more people are updating their Facebook and Twitter profiles while on the move.

Smartphone shipments are expected to surge to 164 million this year, up 13% from 2008, says market researcher Forward Concepts.

The mobile social-networking industry is expected to become a $3.3 billion market worldwide by 2013, ABI Research predicts.

The Lottery and the Internet

Today, almost all lottery players have access to the Internet – and in our research, 72% tell us that they would consider buying a ticket online.

Just 15% of adults went

online

1995Today, 74% of

adults are actively online creating,

sharing and talking via social media

2008

Source: Pew Internet and American Life Project, Dec. 2008 21% say they’d buy a ticket online at least once

a week!

Everyone is Talking Social Media

Examples of Social Media

Blogs and Video Blogs Micro-Blogs (Twitter)

Twitter users spend 66% more dollars on the Internet than non-Twitter users

Social Networks

Facebook

MySpace YouTube

Everyone is Talking Social Media, continued

Professional NetworksLinkedIn

  LinkedIn has more than 365,000 company profiles.

More than 12 million small-business professionals are members of LinkedIn.

Email / Instant Messaging User-Generated ContentCommunications with consumers

have changed from a monologue to a dialog to a multi-logue. Speed is the new “big” thing.

Why is Social Media Important to Lotteries

1) The ability to reach players is becoming more difficult.• TV/Radio/Cable becoming too fragmented• Newspapers/Magazines becoming extinct• Billboards going digital• Online Banners tough to measure

2) Players trust their peers.

3) Social media influences purchase decisions.

4) Involves the player in the shaping of the product.

5) Communicates with players – cheaply and targeted.

6) Positioned for the “future” of interactive gaming.

More Mainstream Marketers Are Going “Social”

You Have No Choice…This is Where Your Customers are Going

Increasingly, consumers don't search for products and services. Rather, services come to their attention via social media.

More than 10,000 websites use Facebook Connect™, a service that lets Facebook users log into affiliated sites and share information from those sites with their Facebook friends. About 30 million Facebook members access Facebook Connect through their mobile devices.

Twitter users spend 60% more dollars on Internet purchases than non-Twitter users.

Linkedin has more than 365,000 company profiles and more than 12 million members.

More than 1 million businesses promote their business on MySpace.

In April, Ford tapped 100 top bloggers and gave them a Ford Fiesta to drive. The catch? Once a month they had to upload a video on their driving experience YouTube.

According to Forrestor Research, 53% of business will increase their social networking presence this year.

The share of Americans 18 and over online who use a social-networking service more than quadrupled to 35% in 2008 vs. 8% in 2005 (Pew Internet & American Life Project).

Papa John’s Pizza added 148,000 fans through a guerrilla marketing campaign on Facebook offering a free pizza to anyone who signed up to be its “fan” on Facebook. The promotion gained thousands of customers and now Papa John’s has 300,000+ fans.

The Social Media Gaming Connection

SMS, emailMobile , PDA, PC, iTV Browser

PaymentInterface

ContentPartnerInterface

Content Delivery Central

System

Lobby, Live Gaming, P2P Bet, Instants, Tournaments SDK

Mobile, PDA Live Gaming

PC Live Gaming

Multiplayer Gaming

IVR

Service Subscription ManagementLobby Services

Video Lottery Game ServicesCasino Game Services

Entertainment Game ServicesAccess Control

Lottery and Betting Access Services

Management System Reporting Admin, Utilities

EntertainmentGaming Controller

Lottery, SportsBetting Gaming

Controllers

Portal RenderingMessaging

GW

Player Management interfacePayer Verification interfaceExternal Game interface

Casino CardGaming Controller

Video LotteryGaming

Controllers

VLT ThinClient

VLT Thin Client SDK

Persistence Data Storage

Intralot Gate Server

e-Wallet

Layer 1

Layer 2

Layer 4 Layer 3

b-On

PaymentBroker

What Does This Mean for the Lottery

The Age of Mass Messaging has arrived.

Lotteries need to seriously consider changing their media mix.

Embrace today’s digital and mobile landscape.The mobile social-networking industry is expected to become a $3.3 billion market worldwide by 2013, ABI Research predicts.

Like The Who sang in 1971 – Everything’s Going Mobile.