Promotions 2.0
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Transcript of Promotions 2.0
New technologies,fragmented media, and a new
generation of empowered consumers are rapidly changing the world
of advertising...
Weʼre Spending Less Time Here...
Radio-19%
TV-33%
Print-30%
Arbitron Research: Internet and Multimedia Study
Decline in time spent with traditional media due to increase in time spent online
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50
100
150
200
MySpace Facebook Super Bowl American Idol People Magazine
Social MediaSocial Media is the new Mass Media
milli
ons
120 million
200 million
98 million
32 million
3.6 million
David Schenk, Marketing Smog
In 1971, the average person encountered
approximately
500 ad messages a day
Media fragmentation is increasing.
8
Today, that number
is almost
5,000
David Schenk, Marketing Smog
making it harder toengage consumers.
Online Advertising
“CPM Rates have been flat with
declining results for the past 2 years.”
Average click through rates now .01%
Online Promotionsspending expected to triple over the next 5 years surpassing all other online advertising categories.Borell Associates: The Big Shift Research Report (April 2008)
PASSIVE
Digital Consumersare shifting from passive shoppers to active brand participants
36 million Download music or video*
user
40 million Browse the web fromtheir mobile phone**mobile
50 million Have created online content*
producer95 million
Participate in online Contests
& Sweepstakes**** participant
110 million Participate in
Social Networks*
community
200 million US consumers have shopped online
Over 875 million worldwide***
customer
*Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
0
7.5
15.0
22.5
30.0
Promotions Email Search Video Display
2008 2012
Source: Borell Associates inc. 2008
($ in
Billi
ons)
Online PromotionsSpending expected to surpass other online advertising
categories over the next 5 years.
Because promotions deliver results...
60%of US consumers have purchased a brand due to a promotion.*
82%of consumers will provide personal information in exchange for a chance to win.***
*IMI International **eMarketer ***Jupiter Research: Online Privacy Report
80%of online consumers have entered a sweepstakes.**
The New Marketing MixAdvertising + Digital Promotions
Promotions + AdvertisingIncreased relevance & entertainment4
Television Advertising Low Relevance - High Entertainment
Internet AdvertisingHigh Relevance - Low Entertainment
Mass MarketingLow Relevance - Low Entertainment 1
2
3
Relevance & Entertainment 2 axis that create consumer value in marketing:While all marketing is capable of playing in quadrant four, no single medium has broken through.
Rel
evan
t
Entertaining High
1
2
3
@Low @
@
@
Low
High
44
Increased Value Increased Value
Quadrant 4 = most value
Source: Joseph Jaffe
By combining digital promotions & advertising both relevance & entertainment value is increased moving closer to Quadrant 4.
Old Marketing New Marketing
Spray & Pray
Large Audience
Low Relevance
Low Return
Attract & Engage
Smaller Audiences
High Relevance
High Return
16
Digital PromotionsFrom Brand Awareness to Engagement
Bran
d Aw
aren
ess
High Consumer Involvement
Bran
d En
gage
men
t
Low Consumer Involvement
>>>
>
Sweepstakes
Mobile
Instant win
Advergames
UGC
Social
Core Audience
Extended Audience
70% of CPG Super Bowl Advertisersused interactive promotions at the core of their 2008 campaigns.
Source: Promo Magazine
User Generated Contestsdeep brand engagement & active participation
Doritos changes the gameContest winner beats out madison avenue
winning USA TODAY'S 2009 Super Bowl Ad Meter
Advergamesbrand messages become viral brand experiences
30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial*
*2009, Harris Interactive Poll
Advergamesbrand messages become viral brand experiences
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10
20
30
40
Advergames Video Tell-a-FriendAdvergames/
MicrositesOnline
ContestsSocial
BookmarkingTell-a-friend
Viral Video
Viral Marketing Tactics with “Greatest Results”*
* 2008 eMarketer, Viral Marketing Survey
Mobile Integrationparticipation anytime or anywhere
97% of consumers carry their phone at retail** Promotion Marketing Association Digital Summit
Largest US SMS Promotion New technologies driving innovation
Inclusive Experiences Everyone wins something. Someone wins everything.
One person wins a trip to the World SeriesEveryone wins a taco if base
is stolen during the game
One college wins a private concertwith the Dave Matthews Band
Everyone watches online
Social Promotionspromotions worth talking about
78% of consumers trust consumer recommendations over advertising
Nielsen “Trust in Advertising Study” 2007
Warning!Promotions are regulated & must comply with federal and
state laws to avoid civil & criminal penalties.
Axl Rose vs. Dr. PepperEveryone in America gets a Dr. Pepper (sort of)
No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
Rock the VoteStarbucks and Krispy Kreme face penalties for election day giveaways
Federal Statute prohibits any organization from “providing rewards for voting.”
Pepsi StuffedHarrier Jet a steal at 700,000,000 points
Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet.
Result: Out of court settlement and a whole lot of bad PR.
More Channels. More Noise
New channels & products will continueto distract consumers & clutter the landscape
Clutter ContinuesBrands will look for new ways to engage consumers
as media & product proliferation expands
Mobile DominatesMobile & Wireless devices will become the next
dominant consumer platform
65 Million U.S. Mobile Internet users in 2008 and growing*
* Promotion Marketing Association Digital Summit
Social Media ExpandsSocial Media is bigger than you think... and it’s just getting started
U.S. Social Network Usage
All Adults 35%Adults 18-24 75%
* Pew Internet & American Life Project, December 2008
+
teamDigitalteamDigital is an interactive marketing agency specializing in technology driven promotions that leverage new channels and technologies including online, mobile, & social networks to engage consumers and create measurable brand value.
Websitewww.teamDigital.com
Blogwww.Promotions2.com