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23E47000 Digital MarketingDigital Marketing

Assistant Professor Jari SaloHSE, Dept. of Marketing & [email protected]

What this course is not about…

Digital Marketing - Salo 2

Course objective

• Course introduces students to different digital marketing possibilities. Students are able to decide on different types of digital marketing campaigns and manage those accordingly in both consumer and customer markets.

• Different types of operationalizations of digital marketing are introduced. Course creates basic understanding of internet and mobile marketing. Time is also devoted to pertinent issues in the web 2.0 e.g. social media, virtual worlds, blogs and viral marketing.


Schedule

• Mondays 16-18.00 o´clock from August 31 to October 12 at a room AE341

• Wednesdays 16-18.00 o´clock September 2 to October 14 at a room AE341


Evaluation and grading

• Nokia student competition • Campaign solution (send ppt slide show and max

20 page proposal to [email protected] by September 28)

• Nokia student competition max 50 points• Exam 50 points• Total 100 points


Course and student competition working groups

• 3-5 students• Group 1• Group 2• …• Select project manager,…exchange contact details

etc.


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Detailed schedule

• August 31 Course introduction and (Announcement of Nokia case competition) Formation of case groups

• September 2 Digital marketing landscape • September 7 DM planning and campaign management• September 9 Mobile marketing in consumer markets (Karjaluoto)• September 14 Teenagers and virtual worlds: Case Habbo Hotel (Mäntymäki)• September 16 Digital marketing in virtual worlds (Hietanen+Runtoshop?)• September 21 Digital Marketing and experience goods (Pöntiskoski)• September 23 Search engine marketing and optimization(Pöntiskoski+Snoobi)• September 28 Deadline for submitting Nokia case papers• September 28 Nokia competition presentation (groups 1-4)• September 30 Nokia competition presentation (groups 5-8)• October 5 Nokia competition presentation (groups 9-12) (or lecture by Salo)• October 7 Finalists (3 groups) are announced • October 7 In game and other digital marketing • October 8 Finalists feedback session at HSE room F-310 9.00-12.00 o'clock• October 12 Digital marketing in business markets • October 14 Digital marketing: past, present and future• October 16 Finalist presentation and winner announcement at Nokia House

(Keilalahdentie 2-4, Espoo)


A PAUSE FOR THOUGHT

Digital marketing landscape


A working definition for digital marketing

• In brief, digital marketing aims at creating, demonstrating, documenting, communicating and delivering value in digitized way to customers (B2C and B2B) and for managing customer relationships in ways that enhance digital joint value creation of customers, organizations and stakeholders (Editorial of Journal of Digital Marketing)

• Digital marketing includes all forms of marketing conducted in digitized way. These include internet marketing activities in mobile and computer networks but also those digital marketing activities that are conducted in private secured networks (mainly industrial usage of digital marketing)

• Digital marketing is not replacing traditional marketing efforts but creating new ways to conduct marketing and improve or “kill” old costly habits. Most of the companies have already started their digital marketing efforts and some have their only focus in digital activities. Digitization is visible in business, research, new product development, customer communication, branding, advertising, sales, and in relationship management (CRM and PRM)




Evolution from presence to understaningTechnology evolution – service development

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Digital economy cube: Choi et al 1997 modified


Physical Digital Delivery

Digital marketing in practice

• Digital marketing is used to

– Create new customer relationships (CRM) (e.g. Fruugo)– Enhance old relationships (CRM) (Nokia OVI.com)– Improve service ”experience” (CEM) (mobile tickets, IRC-

gallery)– Create and extend brand awareness (Facebook…)– Simply the fuzzy front end of innovation (NPD/NSD/R&D)

(Dell Ideastorm)– ?

• General marketing trends relationships, value creation, innovation, service dominant logic of marketing guide DM research and practice


Why DM?

• Even professional buyers have used and are using digital tools e.g. social media in their daily job – even more than the sellers (see Davis 2008).

• 65 % out of 1000 buyers operating in B2B markets tell that they start search process (new, rebuy, modified buy) with general search engines and after that move to industry specific search engines like business.com

• Company websites are becoming even more important sources of information for buyers but only when time for closing deals comes apparent (Davis 2008b).

Most popular DM tools today in Finnish companies?

• Basic DM tools used in Finnish companies:– Company website– Search engine optimization and marketing– Newsletters and internet advertising

• Reasons that have influenced to adopt DM:– Cost pressure– Chancing consumer behavior

• 33 % of the Finnish companies that responded have allocated a budget for DM

(HSE:Divia report 2009)

Change in DM

• Marketing shifts from the role of passive advertiser into active creator of content and messages as well as acquires a role of mediator who combines and publishes content best way possible

• Content is created jointly with customers and marketers actively produce content for customer communities and their own communities (intra or external)

• Viral and effective digital marketing is becoming more visible in companies operating in consumer markets and in innovative industrial companies

Viral/WOM marketing

• For many DM activities aim is at creating Viral/Wom effect

• In practice these means that content or other marketing material is so impressive or entertaining that customer wants to send it to friends in form or another (+ commenting, continuing the story, making own video etc)

• Effectiveness of viral marketing is based on the identification of sender and receiver (Lindgreen & Vanhamme 2005).

• Viral marketing does not always work since when consumers are at the further in their decision making process viral effect diminishes (De Bruyn & Lilien 2008).

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Viral/WOM marketing

Variations of viral/wom

• Case Snellman

• Recommendators = people that tell friends how good some products are – get promotional material and products – not real money

• 500 people, increased brandawareness !

• Movies and flopping (mobile example !)

• Mobile/digital wom / crowd sourcing…

Crowdsourcing

Canvas for digital marketing

• E-retailing / e-tailing• E-mailing• Websites• Web advertising (banners etc)• Search engine marketing / optimization• Blogs, RSS, vod/podcasts, Wikis, webcasts,

mashups and tags (physical browsing)• User generated content (UGC)• Social media and Web 2.0• Virtual Worlds• Mobile marketing• Examples: Innovation

E-retailing

• Men are seeking solutions – women experiences (same relates to web advertising information seeking behavior)

• Both value personalized service, experience, security, functional service, surprise gifts

• Most popular purchases: trips and hotel bookings 42 %, clothing and shoes 37 %, books and magazines 35 %, tickets 31 % and music and videos 29 %

E-retailing

• In Finland 2006 e-retailing was evaluated to be worth of 3.3 billions (Itella)

• More than 2 million Finnish people have bought online

• 29 % consumers buy online regularly

• And 25-34 olds are activbe buyers

• 86 % of consumers have bought from Finnish shops (TNS Gallup 09)

• E-retailing evaluated to grow 17% during next five years

Trust in online markets (Salo & Karjaluoto 2007)

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E-mailing

• Emails have impact on buying decisions:

• 77 % of men and 81 % women think jointly to what type of social events like concert, movies, restaurants etc to go to with help of the email

• 78 % of women share plans about their trips

• Younger generation discuss consumption of music

E-mailing

• Advertisers choices:– Actively send emails to different groups –

spamming– Create interesting newsletter – better choice– Help customers to speak about the products in

their emails to friends – innovative• Safe strategy – all above !

• Cultural differences: In B2B markets best choice in Australia is e-newsletter informing about products and services while in Brazil send good quality printed paper

Websites• Websites (static – dynamic):

– Information for consumers, customers, decision makers, investors etc.

– Brand awareness– $, £. € revenues

• Company websites

• Evaluated by number of ranking organizations and institutions

• Usually best sites in Finland are Nokia, Wärtsilä ja Neste Oil.

Websites• Evaluations from perspective of users / customer / investor

– Company and product information amount & quality– Customer service (replying e-mails, chat possibilities

faqs)– Trust and security of sites critical for those that enable

shopping (see. Salo & Karjaluoto, 2007). – Ease of use and navigation

• Ease of use and navigational issues give direction to how good is the ”flow” of the site or how ”sticky” the site is

• Flow= positive overall feeling• Sticky= time customers stay at the site (nowadays also

what they are doing is important)

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Web advertising

• Evolved from informative websites

• 1995 first banner ads appeared

• To some extent targeted

• Information about effectiveness – comparing e.g. newspaper advertising

• Call to action – from click to shop

• 24/7/365

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Web advertising

• Traditional web advertising• Classified ad (e.g. craigslist.org)• Banner = graphic display keyword banner,

appears on the search engine when keyword inserted, random banners, dynamic – based on user info banners e.g. Facebook)

• Pop up pop up/under, interstitial(between clicks / downloading used to capture attention, similar to TV-commercials)

• Advergames (in game, branded game, between games)

• Static – dynamic

• Counter software development to eliminate these

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Web advertising measurements

• Ad view = number of times customer calls up the page,

• Synonyms : impression or page view

• Click, ad click: visitor clicking the banner

• CPM=cost per thousands impressions: Fee for a 1000 page clicks

• Conversion rate = percentage of clickers who buy, usually with non-targeted without permission, non personalized low !

• Click through ratio= Number of clicks / times seen – success of banner ad

• Click through rate= number of visitors exposed to a banner and click it

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Web advertising effectiveness

• To some extent targeted:

• Price for a Facebook ad for a month 30.000€ ?• Many brands involved• Not always optimally targeted

• Targeted:• Permission based, existing customer relationship with

a brand (well known, trusted brand)• Customers want to keep up the relationship ( favorite

nightclub…)

• Eye-tracking !Digital Marketing - Salo 32

Search engine marketing and optimization

• Searh engine marketing – advertising

• Search engine optimization

• Mobile search engine marketing / optimization

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Search engine marketing and optimization

• Google is one of websites used daily (development of Bing by Microsoft)

• Even professional buyers use it

• When customers are looking for steel producers or make up providers your company must be present (preferably first or second at the list) and offer customer experiences that engage online

• Search engine marketing can be divided into advertising in search engines and Search engine optimization (SEO)

• Use of mobile phones and other mobile gadgets is one specific are of search engine marketing

• Search engines Google, Bing, Yahoo, Ask Jeeves (Ask), Dogpile

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Search engine advertising

• Using Googlen AdWords service any company (or organization) can buy almost any keyword with a certain amount (using creadit card) (see Turban et al., 2008 ja Poutiainen, 2007).

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Criticism on Google Adwords

• Since companies are buying a search word for e.g. up to 500USD or as much as they will other companies when they know competing companies search word eat some of the search words paid by competitor

• This is suitable e.g. for companies competing directly with those advertising (hotel advertising in web trying to sell directly –aggregators like Hotels.com)

• Launching anti-campaigns against some brands…

• Aim is to consume competitors account so that customers are directed to other site

• Rare but possible !

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Search engine optimization

• Basically the search engine ranking of any given webpage is based on two main factors:

– The keywords on that webpage. The more focused and clear the content is on the webpage and the clearer that content is indicated in the page’s title, metatags, headings and body text the greater are the chances of high ranking for the main keywords on that webpage.

– The pattern of links to a domain name – quantity, quality, and context of incoming links to its domain name.


Search engine optimization

• In SEO website is modified to be more search engine friendly i.e. the search engine understands the site better- in order to get a better ranking at a search page

• In practice (those who know how to do it) this means changing site structure, terms used, modification of links etc. see Langeville & Meyer 2006).

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Google AdSense

• In the AdSense service internet website operators and owners (like bloggers with traffic) can gain fees from Google if they put banner to their website.

• In Adsense the advertiser gets more relevant content for the ad which makes the ad more relevant to the website.

• For example, site that deals with new energy sources is more suitable for wind power company ads than showing that ad on forest industry specific portals.

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Blogs is

• Created by someone to present ideas in text form usually like diary

• Blogs can include video and music (compare to v-blogs which use mainly video)

• Possible places to blog: create own site, let someone provide you a blog (some costs) or blog to a someone's site (blog collecting sites making money out of your blogging)

• Why from DM marketing perspective interesting?

• According to Statistics Bureau of Finland in year 2008 38 % of Finns read blogs and 35 % write to different types of news forums.

Blog marketing basics

Creating a blog that matters:• Is interesting – creating new content • People want to comment and share ideas

• Some business leaders and visionaries can even develop their business and industry by influencing bloggers (strategies: own blogging site, commenting other blogs)

• Advertising / new product launches etc.

• Especially corporate blogs are many times considered boring (CEOs or CTOs telling about performance and new products)

• Why? Almost identical print to press releases see Techworld, 2008).

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Blogs and business

• Collecting information: MI, CI, BI

• Reacting to competitors announcements (new products, brand messages etc)

• Collect ideas for new products, campaigns…

• Build up relationships (customers, partners, investors, experts etc)

• Soften company image (directors blog)

• Internal company blogs (internal marketing + creating /influencing organizational culture)

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Some simple blog strategies

• Commenting those blogs important to your business (those that have influence)

• This activates and also keeps your company in ”beat/pulse”

• Advertize on selected blog sites (about 25 % of web users visit blog sites) (International data) – getting the niche audience

• Create blogging tracking / analysis performance system

• Join blogs to RSS (Real simple syndication) / Mashups

RSS, Pod- vodcasts

• RSS Really Simple Syndification:

• A format for delivering regularly changing web content like weather, news, blogs, updates, voice files etc, podcasts

• Many news-related sites, weblogs and other online publishers syndicate their content as an RSS Feed to whoever wants it.

• RSS solves a problem for people who regularly use the web. It allows you to easily stay informed by retrieving the latest content from the sites you are interested in. You save time by not needing to visit each site individually.

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Pod- vodcasts

• Podcasts = Traditional Ipod voice files that customer has ordered from a source (short, long, fact, fiction, music, radio shows etc)

• See e.g. podcast.com several hundreds of podcasts.

• Besides podcasts customer can order video content and term used is vodcast/v-pods or video podcasting.

• In DM new terms are created eventough we don’t necessarily need those – acronym battles !

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Pod facts and strategies

• Nielsen/NetRatings survey conducted from 2005 to the present revealed that Internet users aged 25 to 34 are those who download more video podcasts.

• Video podcasts were among the top ten tech trend in 2006 achieving a level of Internet cult status.

• ” Users can subscribe to vlogs to get the latest videos or even the ones they missed and then have them automatically sent to their computer desktop.

• Create, advertise, increase user experience by engaging a community to create pods/vpods.

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Pod strategies

Passive strategy:– What other companies are posting on external

pods and vods. Marketing intelligence and industry trends follow ups.

Active strategy:– Pods /vods created and casted that fit company

strategy and image. If customers are active and eager to use digital tools then active strategy is suitable. Company can also sponsor some pod/vodcasts or directly advertise in those. Especially technical solutions and innovations seem to be adopted quicker if information is available from many sources including pods/vods.

• Some thinking points: identifying right pods/vods, coverage, costs, audience type, etc

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Blogs and pods (industrial company interviews)

• Lehtimäki et al. 2009

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DM landscape

Wikis• Form of social writing when multiple users

modify content (like in Wikipedia)• Finnish industrial companies (Outopedia etc)• Idea is to develop community which collects

information – Can enhance/create brand relationship – can be used to educate new personnel !– Include video and simulation – interactivity– To further develop ideas (see Ryan & Jones,

2009).

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Webcast - webinar

• Direct webcast - streaming media

• One or multiple receivers

• Meeting, education (e.g. Elmar webcasts), speech, football match etc

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Webcast use and performance

• Decrease travel and conference /meeting costs

• Registrations to webcasts – known recipients –voting systems

• Webcast system reports (activity of people and activities done) (e.g. everyone must click/vote ”can not sleep” while watching

• Webcast analytics afterwards

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-First live audio commentary for free -Then video archieve, downloads and merchandising- After that pay-per-view

Liverpool webcast

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Liverpool - results

• Liverpoolfc.tv

• E-season ticket $ 7.85 month all digital material

• Online presence seen as brand platform

• Alerts as ad channel

• 3 million unique visits per month

Technical detail: Mashups

• Webpage or Website that combines information and services from multiple sources on the Web. Information and/or complementary functionality from multiple Web sites or Web applications can be mashed up.

• Web mashup server lets you connect, collect, and mash up anything on the Web as well as data on some back-endsystems.

• Picture – location Google maps –Flickr/Panorami

• Seven categories:– mapping, – search,– mobile, – messaging, – sports, – shopping, – and movies.

• More than 40 percent of mashups are mapping mashups (see Vlist et al 2006) Digital Marketing - Salo 54

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Technical detail: Mashups

• HousingMaps (http://www.housingmaps.com)

• It pulls sales and rental information from the classified advertisement Web site Craigslist (http://www.craigslist. com) and displays the listings on interactive maps pulled from Google Maps. Users can drag the map to see what is available for sale or rent in a given region. Several other new-breed Web applications similarly integrate multiple services under a rich user interface.

– Etuovi.com– Hotels on Google etc.– For personal use as well

• It’s easier and quicker to create a mashup than to code an application from scratch in a traditional way. This capability is one of Web 2.0’s most important and valuable feature.


Tags, social bookmarking, physical browsing, games= geo-treasure hunt

• Keywords added to articles in blogs or Web pages via social page tag tools such as del.icio.us (http://del.icio.us) Technorati,and Yahoo’s My Web.

• Most blogs and Web publications use tags. Tags are also known as labels, and the process of creating tags is known as tagging.

• Social bookmarking is the process by which users bookmark interesting pages and assign tags to each. Users can then share their tagged bookmarks (see, for example del.icio.us).

• Social bookmarking is a great way of capturing contextual knowledge (photos of Rio de Janeiro or Sodankylä tagged and presented on a map etc)


Tags, social bookmarking, physical browsing, games= geo-treasure hunt

• Physical browsing, objects marked with readable tags (RFID or similar)

• Route or objects marked or presented on website

• Using mobile phone or other device to reads tags and browse information

• Near field communication (NFC) technology

• Combined to a game geohunt (treasure hunt –outdoors=


Webisode, Digi/mobile/internet - TV

• Movie / series / preview / promo episodes downloadable online (download or stream)

– See e.g. NBC webisodes sponsored by… Sprint etc

• Digi/mobile/online TV portals– See e.g. MTV3 Katsomo

• Digi/mobile/online movie portals

• Different types of news/fan ”groups” or websites


Widgets

• Widgets are mini applications that provide a single utility or service to the user like the current weather or a dictionary.

• They can reside either locally on a computer

• Widgets that need to be downloaded onto the computer or on HTML like those provided by Typepad for its bloggers.


Widgets

• Widgets that reside locally are useful only to the person who installed them.

• Ten thousand installs means an engaged audience of ten thousand.

• Widgets that appear on a personal site or blog are seen and potentially used by all of that site's visitors. Here, ten thousand installs could mean that actually the application is used by hundreds of thousands.

• When the widgets are intended to sit on web pages, like some popular blogs, it is important that the visitors of the site are the target group for the marketer, as with banner advertising.


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Widgets

• Widgets can be used for brand building efforts

• Their function is less to drive traffic on the website but more to engage users to the brand (Pishevar 2006).

• The success of a widget can be measured by the amount of downloads and usage.

• Acura: Developed the Acura RDX Traffic widget that delivers real-time information about traffic flow, traffic incidents, road construction, and traffic speed of specific area to a user's computer.


Webopinions

• User opinions• Recommendations• Bias / or not• Impact on CB



• User generated content (UGC)

• Sharing others content and specifically created own content

• User can be a individual, company, non-profit organization or government


Digital marketing landscapeEntertainment industry pushed content

• Entertainment industry as creators of the content

• Music industry companies create videos for bands

• Newspapers and TV-stations are publishing reports by professional reporters

Pull for consumer generated content

• Consumers/Users create and publish content

• Fans sending movie clips to be included in the video of their favorite band

• CNN etc. Send your videos and pictures concerning current events (Hudson River plane crash, Mumbai – mobile videos, pictures, Tweeting)


UGC: From broadcasters to audience driven content

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UGC: Digital marketing landscape

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• User generated content (UGC)

• Places to share content and publish your own content

– CNN (iReport)– Youtube– Flickr (photo management and sharing)– Helsingin Sanomat (send a picture) – Creating a blog (see e.g. blogs.com)– Twitter– Slideshare (consulting, teaching – demonstrating

experience)


Twitter: short message service


Gosalves, Antone: “Dell Makes $3 Million for Twitter-related Sales”, InformationWeek 12 Jun 2009 @delloutlet=600.000 followers



• Teaching

• Further education

• Tele, satellite, video broadcastings




Social media & web 2.0

• Social media is a term that refers to services based on a sense of community, information generation and sharing (Hintikka 2008)

• Social media is a term that refers to services based on a sense of community, information generation and sharing (Hintikka 2008) and it also includes web 2.0 technologies (Lehtimäki, Salo, Hiltula & Lankinen 2009)




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• Lehtimäki, Salo, Hiltula & Lankinen 200974




Social media in the music industry


Web 2.0 marketing actions

Sony Indie Scandie Affiliate Consumers attitude

Asking to join a community

X X X +

Advertising new songs and albums

X X X +

Promoting concerts X X X X +

Advertising fan merchandise

X X X +

Up loading videos to e.g. YuoTube

X X X X +

Asking to tell friends X -

Advance listenings X +

Salo & Härkönen 2009




• Social media, communities and NPD• Social media and online communities provide new ways for

companies to digitize business:– Front end of Innovation - ideas– NSD/NPD– Testing

• Creating own communities / participate established communities

– Inform about new products– Ask review and recommendations

• Competitions and games

• Press events & education virtually

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Apple IpodNike NissanDell

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Virtual worlds• 3D online world. Sense of presence and simultaneous

experience in context

• Avatar is used to present you (or not)

• There are over dozens of virtual worlds: Second life, Kaneva, There, Habbo Hotel

• Virtual worlds vs. MMORPGs (massive multiplayer online role playing game i.e. games like World of Warcraft 12 million users)

• Simsonline, EVEonline etc



• Virtual businesses & brands

• Virtual world developers and agencies

• Virtual world providers

• 3D physics engines and 3D modelling platforms



Business purposes:• Education & Training• Communication & collaboration• Sales•Branding• Innovation


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MoiPal (cross platform PC+mobile)


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DM and innovation• Coke: Virtual Thirst ”send ideas for portable virtual

vending machine”• Steelcase: ”design new innovative executive chair”

• BMW: BMW series 1 Use Facebook application graffiti wall to design new and customize your BMW 1. Over 10.000 participated and 600.000 voted for a best design

• T-shirts…

Kohler 2008


Use for innovation• Observation of consumer behavior - generating

new ideas and improving products, retail store layouts etc

• Evaluation of the new product ideas

• Actively generating new ideas

• Concept testing and design



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YouTube MySpace

Facebook

Second LifeLinkedIn

Classmates services

Flickr

Social orientation

Low

Hig

h

High

Con

tent

cre

atio

n an

d sh

arin

g

Low

Habbo Hotel

DM communities taxonomy (Salo & Härkönen 2009)


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Mobile technologies introduction


• Handset technologies

• Network technologies

• Application technologies

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Current status of mobile markets

• Voice and SMSs no. 1 services• The penetration of 3G and ”smartphones” continues to

grow– Especially in Western and Asian markets

• Consumers are starting to use more mobile services other than SMS and voice

• However: – The penetration of advanced mobile services has been

slower than expected– Still relatively few mobile service success stories

Changes in consumer behavior take time, the benefits (for both consumers and companies) dependent on the critical mass

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Introduction to mobile technologies – consumer perspective

(Salo & Tähtinen 2004)

ContextsensitivePersonal Interactive

Value

Information Entertainment

Requirements

Mobile marketing usage

Marketing content

Customization& targeting of

advertising

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Introduction to mobile technologies – company perspective

• Mobile technologies used within companies are many times internally focused (e.g. mobile office solutions)

– Market-Vision conducted survey in Finland in 2008 and 46 % of companies use some kind of mobile solution

– In the forest industry 68 % companies are using mobile solutions

– 84 % aims to improve their processes with mobile technologies

• Some studies highlight the role of mobile technologies in business relationships (e.g.)

– J22. Salo, J. (2009). The role of mobile technology in a buyer-supplier relationship. Journal of Business & Industrial Marketing. (in press).

General trends:

• The importance of the Internet – Increasing consumer power:

• Information available for consumers is constantly increasing• Competition for consumers is constantly increasing

– Randall Travel Marketing (2006): Top ten travel and tourism trends:

• 78% of all purchase decisions based on internet-based product information

• 56 % use the Internet as sole information channel– Mobility is BIG, especially in Finland– Yet, the Internet already builds upon human mobility


Trends• “Time poverty”

– Demands for the efficiency of time use increasing– Consumers demand more complete and complex services.

Simultaneously, they are willing to invest less time in the purchase process

• Demographic changes - The emergence of ”m-generation” as relevant market player, huge business opportunities

– LSE study (08/2006):”UK youth prefer mobile over TV”

• Consumers value the opportunity to participate in value creation

• Consumers value multichannel service


Business perspective change: from value chains to value networks

Physical INFRASTRUCTURE/ OFFERING

Digital

Customer drivenService-enhanced customization

Supplier drivenMass production

Industrial age corporation

VALUENET- Digital system- Customer driven ideas- ”open innovation”


i-Phone facts:• Rubicon Consulting (2008):

• A third of iPhone users carry a second phone

• A quarter of iPhone users say it’s displacing a notebook computer

• 28% of iPhone users surveyed said strongly that they often carry their iPhone instead of a notebook computer

• The iPhone increases phone bills. – The iPhone has increased its users’ monthly mobile phone bills by an

average of 24%, or $228 extra per year

• E-mail is the #1 function – The most heavily used data function on the iPhone is reading (but not

writing) e-mail

• Note: iPhone data is skewed towards the early adopters


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Results from Rotuaari -project

• University of Oulu’s multidisciplinary research project which studied mobile services

• 6 mobile services field trials implemented during 2003-2006

– SmartRotuaari1, 2 &3, TiernaJack, MobileKärpät, SmartCampus

– Almost 2000 consumers/end users surveyed– Hundreds of interviews

• The main result - Consumers valued:– Location-based, context-specific services– Multichannel services– Community services


Mobile Marketing

• SMS/MMS/Web – Case Onnela (studied in Fummas project)

• Video clips• Music• Games• Internet


Mobile marketing process

Salo et al., 2008


Mobile marketing recall


Mobile sources of value

• Peer content creation• Presence, personalization, location and context-

awareness• Multi-channel services• Mobile marketing, M-CRM• Social media, virtual communities• User experience

– Coherent user experience in multi-device environments

– Ease of use still most important !

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Salo & Karjaluoto 2007

Advertising mediums compared

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Digital marketing in practice

Role of DM in 2008• Try (everybody else is in Second life

and Twitter)

• Trial campaigns and problems (like in mobile marketing in 2002)

• Belonging to a social web / community –presence (like in internet marketing 1995-2000)

• Something new and shiny: blogs, wikis, webinars, webisodes, twitter, etc.

Role of DM now / future• Improve (why we are using

these, how many customers with what costs, cost of brand awareness etc.)

• Central part of company Marketing actions (sales, advertising, R&D, CRM + budget)

• Creating and leveraging communities for business

• New and shiny: Where's the beef for company value, brand value, CRM, Sales, NPD/R&D (value, roi, effectiveness)

Digital Marketing - Salo 103 Digital Marketing - Salo 104

Homework and thinking exercise

• How (why, for what) different companies (B2C/B2B) can use SEO and SE marketing?

• How (why, for what) different companies (B2C/B2B) can use social networks/social media?

• How (why, for what) different companies (B2C/B2B) can use virtual worlds?

• How (why, for what) different companies (B2C/B2B) can use mobile marketing?

• DM strategic or peripheral?