Hong Kong Digital Marketing 2008

Customer Futures HK

How Digital Is Changing The Marketing Landscape

22/7/08

Ogilvy - Customer Futures Hong Kong 22/7/8 - 2

[email protected]


Interactive @ Ogilvy - The largest digital network in the world


Digital Is Not A Discipline…It is A Specialism Within All Disciplines

PR ADVERTISING DIRECT RETAIL ACTIVATION

DIGITAL


Thought Leadership Through Dialogue

Labs

Global Digital Trends

Verge

Blogs

Desktop


4 Golden Rules

• 4 marketplace observations

• 4 audience trends

• 4 marketing shifts

• 4 strategies to deliver

4 Marketplace Observations

a. Changing landscapeb. What are marketers sayingc. What are marketers doingd. The reasons why


“The ad industry is passing through one of the most disorienting periods in its history.

This is due to a combination of long-term changes, such as the growing diversityof media, and new technologies, most notably the internet.

Consumers have become better informed than ever before, with the result that some of the traditional methods of advertising and marketing simply no longer work.”

1a. Traditional Marketing Methods Will No Longer Work, McKinsey


1a. New Marketing Channels Explosion


1b. Real Indicators: What are Marketers Saying?

• “Consumers are less willing to believe traditional advertising…marketers need to use the channels consumers use”– Nestlé

• “Using new media has reminded us that we can play a bigger role in consumers lives”– Unilever

• “ What we have to ask is what's right for the customer and put them at the centre”– Technology Sector

• “There is no mass media anymore”– P&G

How Companies Are Marketing OnlineMcKinsey 2007


1c. Real Indicators: What are Advertisers Doing?

Worldwide Online Spend growth of c. 200% since 2001

€29,0 bill.

€25,3 bill.

€18,4 bill.

€13,1 bill.€10,3 bill.€9,4 bill.€10,6 bill.

2001 2002 2003 2004 2005 2006 2007

Online Spend

GroupM: This Year Next Year, Jan 2008



Source: ZenithOptimedia, March, 2008; *eMarketer, 2008 (Internet and total media)

TotalMedia*

6.1%

Outdoor

9.5%

Television

7.2%

Radio

3.5%

Mags

3.2%1.0%

Newspapers

Internet*24.1%

$46.0 Billion

Global market: % growth in each medium for 2008 (vs. 2007) Online advertising represented 3.6% of overall spend = HK£22

billionBrandRepublic/ADMANGO



53.3%GroupM, 58.1%; Carat Insight, 56.0%; PwC, 55.5%; JP Morgan, 50.0%; BIPE, 45.0%

China

32.0%BIPE, 29.3%; PwC, 36.0%Japan

29.0%eMarketerCanada

27.1%GroupM, 30.4%; PWC, 26.3%; BIPE, 25.5%; WARC, 21.3%

UK

22.7%eMarketerUS

24.1%Zenith, 25.7%; Oppenheimer, 24.7%; Piper Jaffray, 24.5%; Carat, 23.3%

Global

% GrowthSource

% growth in Online ad spending for 2008, by region/country


1d. Why: Online Advertising Drives Measurable Action

Impressions

37 million

Arrived

29,949

Action

914

£ Year 1

£17,953 Cash£42’630 DD

CPA – £74.20 (vs. £90 Target)

CPC – £2.26

CTR - 0.08%

CPM – £1.8

CTC - 3. 51%

ARPU - £60.32 Cash/£58.3DD

ROI – 0.71 – Year 1

ROI – 2.90 – Year 5£ Over 5 Years

£231, 103

ViewedAd

Donated

Cancer ResearchUK Banner Campaign


1d. Why: Online Advertising Shifts Brand Perception

N= 52 test, 56 control. In market = plan to open a new brokerage account/add an account in the next 12 months.

31%29%

25%23%

35%

46%

23%

27%

16%

25% 25%27%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Has fair, simplepricing

Is a leader in onlinetrading

Charges low ertrading fees thanother companies

Is a company I cantrust w ith my long-term investments

Makes it easy to domore investing on

your ow n

Gives me tools andresearch to make me

a better investor

Test

Control

S

+ 8% - 2% + 10%+ 2% + 9% + 19%

Ameritrade


1d. Why: Digital Fits In All Areas of The Purchase Cycle

How Companies Are Marketing OnlineMcKinsey 2007


1d. Why: “The Internet is the Viagra of big business.” Jack Welch

American Express Q2 Financial Presentation


1d. Why: Audience Are Online

2. 4 Audience Trends

a. Createb. Communityc. Challenged. Control

Web 2.0

7/3/8


WEB 1.0WEB 1.0 WEB 2.0WEB 2.0

READREAD WRITEWRITE


Consumer 1.0Consumer 1.0 Consumer 2.0Consumer 2.0

SURFBROWE

CONSUMERECEIVE

SURFBROWE

CONSUMERECEIVE

CREATECOMMUNITYCHALLENGECONTROL


WE ACTIVELY PARTICIPATEI PASSIVELY CONSUME


2a. Create: The Rise of the ProAm

Gambling

Journalism

54.5% of HK internet users have started their own blog, 63.1% have uploaded photos & 52.2% have uploaded videos.

Universal McCann, March 2008

Marketing

Photography

Food


2a. Create: The Rise of the ProAm - Utility

Advertising

Entertainment

Music

Green Travel


2b. Connecting: The Power of the Community

There are 1M+ Facebook users in Hong Kong. 16.24% of all internet users visit social networking sites & forums

ComScore & Hitwise 2008

In the top 5 developed counties, 55% of members of social networking sites say their online communities are as

important as their office ones


2c. Connecting: A Global Brain

93% of Hong Kong online users rely most on “recommendations from consumers”, more than

any other channelNielsen

64% percent of consumers reported wanting to see user ratings & reviews

Forrester 07EIAA 07


2d. Challenge – Enough Is Enough


2e. Control: “My Content & Me-Messaging”

39% of consumers claim they avoid advertising as much as possible Adweek survey, 2007

18% of consumers say they dislike all forms of advertising.DoubleClick 2007


Consumer 2.0Consumer 2.0



WE ACTIVELY PARTICIPATE


SURFBROWSE

CONSUMERECEIVE

SURFBROWSE

CONSUMERECEIVE

I PASSIVELY CONSUME

3. 4 Marketing Shifts

a. Be Socialb. Be Usefulc. Be Relevantd. Be Integrated


Advertising 2.0

BE SOCIALBE USEFUL

BE RELEVANTBE INTEGRATED

LETTING GO

Advertising 1.0

PASSIVEINTERRUPTION

SIGNPOSTSINDIVIDUAL CHANNELS

BEING IN CONTROL


AUDIENCE

BRAND MESSAGE

Old School Advertising…


CONSUMER

BRAND CONVERSATION

Along Came The Internet…


MEMBER

COMPANY

MEMBER MEMBER

MEMBERMEMBER

Then Came Web 2.0

BRAND


3a. Be Social - Listen – People Are Talking About You Online



Answer Mentions – DHL Replace

Blogpulse Trends

Yahoo Answers

Facebook Group



Facebook Lexicon - eBay Blogpulse - eBay

Brand Tags - eBayTwitter Conversations - Vodaphone


4a. Be Social - Converse - Choose When To Talk Back

Starwood – LurkerCustomer Service Outreach

Landrover – Have Your Say Blog

One of the 50 Most Influential brand blogs


4a. Be Social – Connect – Allow Customers To Talk With Each Other

Cisco C-LevelCommunity

BHF Facebook

Best BuyStaff community

MastecardPriceless

Travel Group


4a. Be Social – Collaboration – Harness Your Advocates

Comfort Do Da Moves P&G Tremor


4a. Be Social – Collaborate – Co Create Content

Suave In The Motherhood51% lift in unaided brand awarenessand 27% lift in purchase intent.

Doritos Crash The Superbowl

6th Most viewed & best likedSuperbowl commercial - Cost $12


4a. Be Social – Collaborate – Co Create Product & Experience

Dell Ideastorm

Starbucks My Idea

3b. Be Useful


3b. Be Useful – Inform & Educate

IBM & The Times MBA Podcasts94,791 downloads of the MBA podcasts6,494 downloads of IBM whitepapers 4,314 respondents for IBM brand studyTop 10 download for promotionTop business download for 4 months


3b. Be Useful – Help Their Daily Lives

British Gas ExpertsYouTube & Banner


3b. Be Useful – Entertain Them

Hellman's & YahooIn Search Of Real Food+7.6% YTD sales growth Lift in perceptions of “healthy”

ROI of 1:2“Real Food” Yahoo group 5,000+ members

IBM & CNBCBusiness of Innovation

IBM Films beat TV ad rollingaverages, by more than 63%

Interest in IBM Products +100% in USMeetings with reps +400% in Europe

In-Flight


3b. Be Useful – Entertain Them

Californian Milk BoardGet The Glass

Holiday Inn – Smart Show

Ritz Carlton Films

3c. Be Relevant


3c. Be Relevant – Be Where Your Audience Are

Johnny WalkerConcierge

Easyjet Desktop WidgetPaid for itself with 1 month

IkeaSimms


3c. Be Relevant – Be Where Your Audience Are

Kraft MobileRecipes

132K unique visitors, average user returning twice

American Airlines Widget

Trip Advisor


3c. Be Relevant – “My Product”

M&Ms My Flavours Nike ID Personal Trainers


3c. Be Relevant – “My Product”

Pengiun DesignYour Own Covers

Kleenex Photo Boxes

My Muesli


3c. Be Relevant - Make Them Part Of The Comms

Addidas – The Rook 5 Million views240,000 playersEach player interacted 20 minutes

3d. Integrate


3d. Be Integrated – Across Digital & Analogue


3d. Integrate – Blur The lines Between Virtual & Real

Adverture Ecology Second Life Flood £500,000 worth of PR

Lego Point Of Sale

The Ocular Effect


3d. Integrate – Product, Communications & Service

Nike Plus40% of visitors becomeconverts to Nike’s shoes

4. 4 Strategies


4. Strategies

a. Redefine audience – Don’t count the people you reach but reach the people that count– What, when & where, not who– Define the customer journey

b. Innovation marketing– 80/20 – Permanent beta – Ready, Fire, Aim

c. Work Differently– Swop media budgets for production budgets– Circular not linear– Think interactive, not digital

d. Stand for something– Open source your brand


4a. Strategies

20% = 80% of Sales


5a. Solutions - Focus On Customer Journey

Issue Recognition Scope Requirements Supplier Selection Business Routine Business Improvement

Awareness Relevant Set Usage Main Provider Sole Provider

I have a business issue in regard to shipping or

outsourcing solutions. Who can help me to solve this

problem?

What are my requirements?What are solutions, services & prices?

What are best practices within my industry?

Which logistics partners meet my requirements?

How do I short-list suppliers?

What criteria is decisive?Do I have all the information

I need?Who should I ask for

advice?

Does order/claim/ report management work well?Can I rely on a constant provider performance?

Are employees and customers satisfied with the running logistics solutions?

How can I perform better?What are logistics trends?

What’s new? Am I still up to date?

Is DHL able to handle this issue?

Does DHL fit my needs?

Why should I decide in favor of DHL?

Can I rely on the DHL logistics services

working?

How can DHL support me to steadily optimize

my logistics processes?

EXample DHL Purchase Funnel

Orientation & guidance;High level information;Objective, up-to-date

information from experts

Proof of capability;Case studies;

Variety of solutions;Request of information and

objective support

Clear USP;Affirmation from 3rd

parties;Customer service & expert

availability

Good first experiences; Quality & service standards

are working;Exchange of information;

Exclusivity

Quality & service standards are working;

Impulses & new ideas;Innovations;Incentives

Expert Trusted Advisor Preferred Partner Trusted Partner Innovative Driver

Journey Stages

Customer Insights

Perception of DHL

What customers want

Moments of Truth

Online Solutions

Examples

Brand Online Experience;SEO

Download Area; Videos & Pod-Casts; Brochures &

Handbooks, Best practices; FAQ

Hotline/Call back; Price Calculator; Virtual

Consultant; Request & Comparison of offers;

E-Mail Marketing

Online contract, order, claim and report

management; Forum; Chat; Community;

Literature references; Newsletter

Online Seminars; Expert Forum; Exclusive

Customer Area: Offers, Discounts & Services; Customer satisfaction

online panels

Site welcome/ Concierge; Brand repositioning video

content; Strategic partnership with google

Video case studies; White papers Customer service widget Logistics community: Mobile opp./Tracking widget


5b. Solutions – Innovation Marketing

Safe Adventure

Investment Marketing

Marketing Objective

McKinsey Ogilvy


4b. Ready, Aim, Fire – Ongoing Optimisation & Permanent Beat

Time

Effe

ctiv

enes

s


5b. Solutions - Measure Everything

Impressions/Viewed#

Clicked/Responded#

Action/Activity#

Arrived#

Response Metrics

Brand Awareness

Message Association

Purchase Consideration

Purchase Consideration

Brand Favourability

Brand TrackingC

on

vers

ion

%

Repeat Purchase

#

Advocacy#

Likelihood to recommend

Purchase#C

ost

per

Act

ion

$

Earned mediaOffline & Online media mentions

Word of Mouth# posts/blog

mentionsMentions per

userInbound linksSend to friend

SearchIncreased searches

Higher search results

Greater results share

SearchIncreased searches

Higher search results

Greater results share

Monitor Conversation


5c. Solutions - Working Differently


5c. Strategies – Don’t Think Digital

Over 70% of global marketingexecutives believe online will

determine how major campaignsare planned and executed by 2008


5c. Strategies – Don’t Think Digital

MASTERASSET

(TV)

Site Banner Mobile PrintDMEmail


5c. Strategies - Think Interactive

Print

Site Banner Mobile TV

Outdoor Ambient Event

Email

DM


4d. Strategies – Open Source Your Brand

Dove believes the world would be better if women were allowed to feel good about themselves.

campainforrealbeauty.com


4d. Strategies – A Single Unifying Thought


Advertising 2.0Advertising 2.0

BE SOCIALBE USEFUL


BE SOCIALBE USEFUL


LETTING GO




WE ACTIVELY PARTICIPATE

WEB 2.0WEB 2.0

WRITEWRITE

a. Redefine audience

b. Innovation marketing

a. Work Differently

b. Stand for something

Summary


• Customer Futures is an international members-only network of highly personalised and interactive learning groups for executives whose common link is their focus on the design and delivery of a competitive and profitable Customer Experience.

• Key to the Customer Futures experience is the Learning Forum. Each local group consists of 10-15 non-competing businesses, meeting quarterly to address pre-agreed agendas based upon the researched subject priorities of the membership.

• The Forums feature thought-leading international speakers and local member case-history experiences, and encourage open discussion to deliver learning, insight and experience in the field of Customer Management and Customer Experience Management.

• Learning Forums are currently based in the UK, Ireland, Hong Kong, Australia, Canada, South Africa, Spain and the Netherlands.

• Customer Futures is part of the OgilvyOne Worldwide Group (itself part of WPP plc) which has offices in 125 markets around the globe.

• With members having included American Express, 3M, Cancer Research UK, Microsoft, The Economist and Vodafone, a broad range of experience is guaranteed.

Thank You

[email protected]://interactivemarketingtrends.blogspot.comwww.twitter.com/gilesrhysjoneswww.linkedin.com/gilesrhysjones

Hong Kong Digital Marketing 2008

Business

Transcript of Hong Kong Digital Marketing 2008