Barbara A. Pellow - State of Industry - Changing Marketing Dynamics in Western Europe

© 2010 InfoTrends, Inc. www.infotrends.com

Changing Marketing Dynamics in Western Europe

Barbara A. PellowGroup Director, InfoTrends

2 © 2010 InfoTrends, Inc. www.infotrends.com

Topics

• Media Dynamics in a Multi-Channel World

• New Technologies Taking Hold

• The Benefits

• The Bottom Line


Consumers are “Always ON”!


Multi-Channel Marketing: The Simple Definition

The delivery of customer value propositions via multiple channels with cross-channel integration in management, information, and service in a consistent and coordinated way


Everyone is Connected!

• The total number of global Internet users will surpass two billion before the end of 2010.

• More than half of these Internet users (1.2 billion) are citizens of developing countries

In developed countries, 71% of households own computers and 65.6% have Internet access.

• China, with over 420 million Internet users, is the largest online market on Earth. The penetration rate is lowest in Africa, where less than one out of every ten people has access to e-mail and the Web.

Source: ITU, the information technologies and communication arm of the United Nations (UN)


Facebook: Will You Be My Friend?

• As of July 2010, Facebook had more than 500 million active users

• 50% of active users log on to Facebook in any given day

• Average user has 130 friends

• People spend over 700 billion minutes per month on Facebook

• 70% of Facebook users are outside of the U.S.

• If Facebook were a country, it would be the world’s 4th largest


LinkedIn: Making Connections

• LinkedIn has over 70 million members in 200 countries.

• A new member joins LinkedIn approximately every second, and about half of the members are outside the U.S.


Twitter: Tweet Tweet Tweet!

• Twitter has over 106,000,000 registered users

• New users are signing up at the rate of 300,000 per day

• 180 million unique visitors come to the site every month

• In total, Twitter users are generating an average of 55 million tweets a day—this is more than 600 tweets per second

• Of Twitter’s active users, 37% use their phones to tweet

• One in five of the tweets posted on Twitter (or 20%) contains some type of inquiry or information about a specific product or service that is brand-related. (Study by a research team at Penn State University)

Source: Twitter, April 2010


YouTube: Making Heroes

• YouTube views exceeds 2 billion each day

Nearly double the prime-time audience of all 3 major U.S. broadcast networks combined

• 24 hours of video is uploaded every minute

• The average person spends 15 minutes a day on YouTube

• More video is uploaded to YouTube in 60 days than all three major U.S. networks created in 60 years

• 70% of YouTube’s traffic comes from outside the U.S.


Mobile Phones: People are Talking Less and Doing More!

Mobile Activities: 2010 versus 2009

Other popular activities by mobile users include:

• 54% have used their mobile device to send someone a photo or video

• 34% play games• 34% send/receive e-mail• 33% play music• 30% send/receive IMs• 34% record videos (quickly growing)• 23% have accessed a social networking site

using their phone• 20% have used their phone to watch videos• 15% have posted a photo or video online• 11% have purchased a product using their

phone• 11% have made a charitable donation by text

message• 10% have used their mobile phone to access

a status update service such as Twitter


Texting Takes Off

• SMS has jumped from an estimated 1.8 trillion in 2007 to 6.1 trillion in 2010

• With an average cost of seven cents per message, SMS traffic generates approximately $14,000 every second

• The U.S. and the Philippines combined accounted for more than one-third of the total number of messages sent last year

Source: ITU, the information technologies and communication arm of the United Nations (UN),


The Old Communication Model was a MONOLOGUE


The Average Person is Exposed to 3,000 Advertising Messages Each Day


The New Communication Model is a DIALOGUE


Stop Thinking Campaigns… and Start Thinking CONVERSATIONS!


Real Time… At the Speed of NOW!


The Changing Landscape

• From mass media advertising to multiple forms of communication

• From mass media to more specialized (niche) media centered upon specific target audiences

• From a manufacturer-dominated market to a consumer-controlled market

• From general-focus advertising and marketing to data-based marketing

• From low accountability to an emphasis on Return on Marketing Investment

• From limited Internet access to 24/7 Internet availability and access to goods and services around the globe


Advertising Spend Rebounds

• Global projections for market leaders: 2009 vs. 2010

An increase of 0.8%, from the GroupM unit of WPP

An increase of 0.9%, from the ZenithOptimedia division of the Publicis Groupe

An increase of 5.9%, from the Magna unit of Mediabrands, a division of the Interpublic Group of Companies.

A forecast from UBS for an increase of 3.9%

• Gains projected to be 3.9% between 2010 and 2011 and 4.8% between 2011 and 2012

• Recovery will be led by the emerging markets, while more established markets like the United States and Europe will lag in their comebacks

Double-digit growth rates next year for China, Costa Rica, Hong Kong, India, Indonesia, Lebanon, and Singapore

Source: 37th Global Media and Communications Conference, sponsored by UBS

http://topics.nytimes.com/top/news/business/companies/wpp-group-plc/index.html?inline=nyt-org


But The Dynamics Are Changing!

Print

OnlineSocial

Mobile


The Media Channels of Choice Are…

• Social• Personalized• Targeted• Digital• Immediate• Measurable• Integrated and

Interactive!


Not one type of media or another, but the

synergistic use of media

Integrating “Digital Connections” with “Traditional” Media


The Fundamentals Haven’t Changed

• Targeting and List 40% – 50%

• Offer 30% – 40%

• Creative & Media 30% – 40%

New Technologies Taking Hold


New Technologies that Make Media Channels Work Better Together


Meet the QR Code

• A 2D Barcode

• Created by a Japanese corporation (Denso-Wave) in 1994

• QR stands for “Quick Response”


What The QR Code Contains

Service Example Instruction

http: http://www.qrme.co.uk Browse to a Website

Mail to: mailto:[email protected]

Invoke an e-mail message

Telephone: tel: +44123456789 Call a number

sms: sms: +4407912345678 Send an sms message

• Service types that can be embedded in a QR code


How QR Codes Work

A Mobile Phone with a Cameraand QR Code Reading Software

Snap a Picture

The QR Code will Decode

instantly

You’ll Be Brought to a Web Page


Calvin Klein Activates Billboards with Mobile QR Codes for Brand Building


Pepsi: Using the Package to Engage Consumers


McDonald’s: Sharing Nutritional Information


Adegga: Wine Labels Linked to Wine Lovers


In-Store Promotions for Mobile and Print: Driving Immediate Action


Clinique: Building Mobile Contacts


Coca-Cola: TWIST TXT SAVE


And Then There’s Proximity Mobile Marketing…

• Location-based technology “geo-fencing”

• Customers opt in to specific business locations

• Customers receive special offers on their cell phones when in proximity of the business

• Works on any mobile phone (not just smartphones) and does not need an app

• Numerous software suppliers in the U.S. and Western Europe, including O2, Placecast, Quinncom, BlueVibe, etc.


What About Augmented Reality?


What is Augmented Reality?

Reality Virtual RealityAugmented Reality

• AR describes a combination of the two worlds: Reality & Virtual Reality

• AR can superimpose 3D-content/products into the real world

• AR allows interaction with 3D-content in real time

AR is the ultimate interface between the physical and virtual worlds

Reality – Virtuality Continuum


Augmented Reality Defined

"Augmented reality, in its simplest form, allows consumers to use their mobile devices to experience products in new and exciting ways. An image that was once static on a page now comes to life, allowing readers to see and hear the content for themselves.“

-Marci Weisler, Digital Business DirectorTime Out North America


Augmented Reality: Making Packaging Come to Life


Magazines Are Going Mobile


Have You Been to Hallmark Lately?

The Benefits


Better Together for a Stronger Brand and Consumer Relationship


Multi-Channel Marketing Yields…

• Increased revenue and growth opportunities

Multi-channel consumers represent 51% of total repeat buyers and have the highest spend and number of transactions per household or business.

Consumers using 3+ channels spend up to 10x more and generate 25%-50% more profit

• Improved loyalty

• Increased brand awareness

• Competitive advantages to deliver immediacy, education opportunity for complex products, and a true customer experience

• Organizational efficiency and effectiveness

Source: Epsilon Targeting’s Annual Multichannel Trend Report, July 21 2010

Source: Shop.org

The Bottom Line


It’s a Balancing Act!

Consumer engagement and experience

Consumer engagement and experience

Deliver customer valueDeliver customer value

Differentiate and promote effectively through an array of

distribution channels

Differentiate and promote effectively through an array of

distribution channels

Develop innovative and sustainable offerings

Develop innovative and sustainable offerings

Leverage all information and analysis

Leverage all information and analysis

Demonstrate performance and impact

Demonstrate performance and impact

1. Consumers keep evolving and changing

2. Investment in secure, scalable environments

3. Channel synchronization and consistency

4. Online integration, marketing analytics, and determination of customer value

5. Marketers need to be measurable, innovative, and sustainable


Recommendations

• Improve the experience

• Don’t just collect information…Use it!

• Reward loyalty and recognize referrals

Let your best customers help you sell

• Consistently convey the brand

• Listen and respond… engage in a dialogue!

• Encourage community

• Communicate relevantly

• Monitor results across all channels


The Bottom Line: Better Together

• Change is constant

And it is accelerating!

• Communication is a dialogue, not a monologue

It needs to be interactive and engaging

• It’s about the conversation, not the campaign

This means making the connection and building the relationship

• It is not one media type or another, but the synergistic use of media across all channels

• It’s all about real-time NOW communications!