February 2, 2010

The Shift to Digital Communications

The future of

communicationsis

digital

TV is online and on-demand

TV

Radio listenership is decliningFile sharing, podcasts, streaming radio

Radio

Source: Project for Excellence in Journalism

“Newspaper readership, across all age groups, is ebbing. And that problem is compounded by the fact that readership continues to skew toward older people, raising questions about the future.”

Newspaper

Source: Project for Excellence in Journalism

Outdoor

State of Digital Marketing

• Digital media usage is soaring

• Innovation persists

• New technologies are continuing to be introduced and adopted by consumers every day

Source: comScore 2008 Digital Year in Review, Jan 2009

2008: Digital goes mainstream

• Economy and politics drove online activity• Social media continued to grow• People continue to search more and more• Internet users viewed a total of 4.5 trillion

display ads – a new record• Long form video content emerged as video

viewing soared• The year of the Smartphone

Source: comScore 2008 Digital Year in Review, Jan 2009

2009 in review

• Viewing of TV and movie content online will become more mainstream

• Major advertisers will shift spending online to take advantage of bargain CPMs, ad-targeting capabilities, and more measurable ROI

• As Smartphones continue to drop in price, and new entrants penetrate the market (G1, Pre, Storm, etc.), 2009 will be another record-breaking year for the mobile Internet

Source: comScore 2008 Digital Year in Review, Jan 2009

Digital Outlook 2010

• Advertisers will turn to “measurability” and “differentiation” in the recession

• Social Media marketing will go mainstream

• Online ad networks will contract / open ad exchanges will expand

Digital 101 Page 10

Digital Outlook 2010

• Mobile will get smarter

• Research and measurement will enter the digital age

• “Portable” and “beyond-the-browser” opportunties will create new touchpoints for brands

• Going digital will help TV modernize

6/2/2009Digital 101 Page 11

Social Media Trends

Social Media Platforms

Social Media has just begun to change the way marketing and business operates.

The best practices for brands in Social Media will continue to evolve

Social Media is changing the role of marketer to focus heavily on content

creation

The influence of the masses will only continue to grow as Social Media tools

improve and more and older consumers climb the Social Technographics Ladder, moving from Inactives, Spectators, and

Joiners to Collectors, Critics, and Creators.

SEM and Social Media

• Bing, Yahoo and Google recently made changes to the way their search engines index the real-time web, and status updates and tweets are rapidly finding their way into top search results.– Need to integrate Social Media into SEO strategies– When consumers search for brands and campaigns

they are increasingly likely to see results that include blogged and tweeted criticisms as they are links to official brand sites.

– The search engine changes mean that 2010 will be the year when brands can run but they cannot hide.

Twitter

• Will eventually allow advertising – (e.g. ad placements embedded into tweet streams)

• Subscription fees for Corporate accounts are likely coming

• More traffic will come from Twitter– but it will be branding / awareness in nature

• No one yet realizes the full potential of Twitter by the end of 2010 we will all have a better sense of how it fits into the marketing communications mix – Twitter management shops will pop-up all over the place

Facebook

• Will release the “Open Graph API” allowing any site to become, in effect, a Facebook brand page– Users can become fans of sites registered through the program and

publishers will have access to their News Feeds and other communication channels on FB

• Facebook will make it easier for developers to collect email address within 3rd party applications

• Some are predicting that young people could soon stream off the site to avoid status updates from mom and dad, just 50% of the 15-24 crowd is checking Facebook regularly

Digital Is Changing Traditional Advertising

• All media is moving to trafficking and management platforms similar to those used for online– Ad Serving (DoubleClick, AtlasDMT, 24/7 Real Media)

• Digital media is about digital delivery, the ability to generate real-time metrics (lots of them) and most importantly the ability to optimize mid-stream

• This capability is coming to traditional media– Television with growth and penetration of digital cable,

DVRs, and other digital delivery technology– OOH – Already moving to digital platforms (e.g. digital

billboards)– Radio – HD Radio

Digital is a Deep Discipline

• Online Video– Recent formation of Digital Video Committee @

IAB

• Search Engine Marketing (Paid Search + SEO)– Google’s recent decision to penalize paid links

• Behavioral Targeting– Privacy issues regarding lead generation using BT

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