New opportunities in a changing world
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The following slides were developed to support a lunch time round table at the The Sydney Business Chamber in April 2010. The focus of the conversation was how business is reacting to changes in the way people are accessing and using digital content.
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New opportunities in a changing world
- 2. social media apps &content mobility a wave of technological change point of sale
- 3. social media… “ there are very public conversations going on out there, you can listen in, engage and amplify”
- 4. mobility… “ making the web an anytime, anywhere proposition”
- 5. … all web-enabled” “ devices for almost every occasion…
- 6. apps & content… “ apps have made the web useful, Apple tidied it up and now that model is being copied by all manufacturers”
- 7. maps… “ the best map apps don’t feel like a map”
- 8. targeting… demographic behavioural geographic began in mobile now online
- 10. “ the real promise of the internet has always been to totally re-write the way buyers and sellers interact”
- 11. co-operating, not just co-opting informing helping each other creating new things together
- 12. Thank you
Notes de l'éditeur
- Good afternoon, and thank you for this opportunity to speak this afternoon about what I think is fast becoming the most exciting time in online we have seen since 1994. The web as we know it is turning sixteen this year, it only seems like yesterday that the first retail ISPs (connect.com and Ozemail) were established and the web escaped the research environment and we started on the journey down the much hyped information superhighway. Like most 16 year olds, there were plenty of tentative first steps, a couple of big falls, and lots of changes, and there is going to be more development in the next two years than ever before. The question that has been asked every year for a the last few has been, will this be the year of mobile and will it kill online? It sounds familiar doesn’t it? Cinema was going to kill radio Television was going to kill cinema The VCR was going to kill television And how the internet is going to kill everything. Oddly enough, some are now predicting that digital technology will kill itself Spurred on by mobile technologies, John Herlihy, the head of Google Europe, said recently that “In three years time, desktops will be irrelevant.“ The excitement generated by the release of the Apple iPad suggests that online usage is about to change dramatically. Traditional publishers believe that their products will return in style to the way they were before banner ads, and search engine optimisation took the creative journalism out of the business. Optimists in the newspaper world even dare to believe that users will again start paying for a copy of their new online newspaper. So let’s have a look at what’s happening, and where it might take us.
- A wave of technological change I see a wave of technological change coming over the next two years: Probably nothing like it since the dot com boom in the late 1990’s. Remember when Hotmail, Ebay, Amazon, Seek, Carsales and Realestate.com.au changed forever the way we researched and purchased. In this new wave, you’ll see these advancements occur on four fronts: Social media Mobility Content Point of sale Interestingly, they will all develop and merge together to make some very interesting, and often unpredictable developments. Social Media: The last couple of years have seen social media become the number one activity on the web. In essence though, it’s just an extension of human communication, sharing, word of mouth, crowds etc. At the recent Ad:Tech conference here is Sydney, I heard that on average, 1/3 of our leisure time is estimated to be spent online. That used to mean sitting in front of the computer, but now often means sitting with your Smartphone. As marketers trying to reach an audience, it’s a fair assumption that the largest number of people is almost certainly online. Collectively we’re all spending seven hours a month on Facebook, 77 percent of us read blogs, and YouTube has over 100 million unique visitors a month and growing. In the last year we have seen Twitter Grow of 1050% Today, we are seeing 50 million tweets per day—that's an average of 600 tweets per second. Mobility: the launch and uptake of new mobile devices is making the web and anytime, anywhere proposition: 4.7 million mobile users accessed Twitter from their mobile browser in January 2010, this represented 347% growth from 1.05 million mobile users in January 2009 In January 2010, 25.1 million mobile users accessed Facebook via their mobile browser, up 112% from 11.8 million mobile users in January 2009. Content will become deeper, richer and far more targeted. And consumers will play a bigger role than ever. User generated content from photos, videos, reviews, Video will take off Applications will be available for nearly every think you ever need. Point of sale: integrating electronic commerce with the point of sale Using technologies like near field communications that allow you to scan and buy using a digital device like mobile phone or tablet
- Social Media has become the Number One activity on the web. We all know that social media isn’t going away . And that we need to use it. Somehow. In some way. To some extent. But that’s where we all get caught up, how much should we be using social media given all our other marketing efforts? Without doubt someone is out there talking about your brand, your service levels and your products, the challenge is to be far more involved with these discussions than we traditionally were with our regular advertising. As a business we need to monitor, react and respond. Social media is not a short term strategy, it needs to become a long term engagement. Marketers have had mixed fortunes when it comes to tapping into social media, they try to engage with brand ambassadors and embrace user generated content, you can gather quite a following, but you don’t have completed control. You can guide the followers, but once you overstep the mark, try to take control, you risk damaging your brand. One example is Vegemite, they had an amazing level of interest and engagement when they launched the contest to name their new product extension. There was mixed reaction to the new product, but there certainly was a lot of passion and engagement. There were Facebook groups created to promote and discuss names for the black stuff and cream cheese in a jar! Nearly 50,000 names were submitted to the Vegemite website. Vegemite had successfully engaged an enormously loyal fan base. But then, Vegemite made a major misstep when at half time in the AFL Grand Final, it announced it would name the product iSnack 2.0. It did this without going back to the audience of fans it had built and asking them, whilst it was one of the suggested names, it chose to pick the name rather than return to the fans for their opinion. Fans were up in arms, and they again used social media like Facebook and Twitter to voice their anger. The lesson for Vegemite is that you can’t just try to tap into social media when it suits, it has to be that long term engagement I mentioned. There are numerous examples of marketers attempting to build awareness through clever campaigns and events, but most go cold as soon as the campaign is over. On the positive side, you might have heard of Tiger Woods! Before the little blow up last year he was better known as a golfer, and many of you would have seen the EA Sports game, Tiger Woods 09. In response to a glitch that was posted on YouTube and other social media sites, EA quickly created a response, their response has been viewed nearly 5 million times on YouTube alone. At Citysearch, we have taken our first steps into linking our site into social media sites. In the past a user visited our site, and possibly commented on an event. That comment just sat below the listing, waiting for the next user to come along and read it. But linking with Facebook, a user now arrives at the site, logged in as a Facebook user., they write a review of a restaurant or movie, and publish it, not only on Citysearch, but to their Facebook page to seen by a much larger audience. It’s just one example of using the large user base to amplify your message and drive usage.
- Mobility: the launch and uptake of new mobile devices is making the web and anytime, anywhere proposition: As I mentioned, there have been about 10 years of predictions that mobile internet would explode, I am sure you will agree that it has finally exploded around the world. Who here has an iphone? The early part of the change was to replicate traditional offline and online models on mobile, often in simplified, easy to use applications. Mobile Internet has exploded over the last two years. It is now considered to be very much mainstream. In December, our Sensis mobile network hit 2.5m visits for the first time. Grew 70% YoY Yellow Pages, White Pages, Whereis, Citysearch, Sensis Put into perspective: After it was launched in 1995, it took Yellow Pages Online five years to reach half a million unique visitors a month. It’s taken Yellow Pages Mobile only two years to reach that number. And White Pages Mobile, which was launched mid last year, has almost achieved it in only six months (got to 450K unique visitors in December)! Over half of us access the internet via mobile, we have come a long way from simply being able to check the Footy scores when we are stuck out a one year old birthday party! Probably the most obvious change has been the device itself. Certainly the iPhone has changed the way we think about accessing information on the go. Quickly other manufacturers Smartphones are arriving, each one with new features and improvements. We have seen the introduction of e-readers, although these are not as obvious in the Australian market. Like Skiff (pictured) and Kindle have entered the market. Amazon advised that, on Xmas Day last year they sold more e-books than print for the first time. Tablets We are seeing a raft of new touch screen tablets being released onto the market, with the big one – Apple’s ipad is due for release in Australia on the 24 th of April.
- We now have devices for almost every occasion and they’re all internet-enabled. From large screen TVs to tiny mobile phones. The iphone has stimulated the imagination about what we can do on a phone. Tigerspike said at the recent Ad:Tech conference that in their experience, apps for smartphones have 10 times the engagement of a traditional mobile website. Users have become accustomed to looking in the app store rather than search for a mobile website that could probably do the same job. There are 250 million credit cards linked to itunes around the world with most purchases being around $1. With nearly 1.5 million iPhones in Australia, the whole usage of a mobile device has changed. There’s a lot less talk and messaging on the phones, and a lot more browsing and engagement. What’s next? Web enabled accessories like glasses? Perhaps a windscreen of your car that provides information projected about your journey. Whatever comes next, it’s a long way from the start of the century when you carried around your palm pilot, and your mobile phone, and your laptop and a series of cables required to connect them together and to go online!
- Applications and Content There’s been a change in the mobile ecosystem. If you purchased a phone a couple of years ago, it’s likely the telco provided you with a series of links to limited functionality mobile sites and specific content you could access. It was all fairly basic, and most users didn’t explore much further than these portals. Then along came the iphone, and the appstore Apple tidied up the challenge of finding the right content for your mobile experience. As Apple’s own advertising says, there is an app for almost everything. Apps allow marketers to associate their brand and products with useful tools to help consumers. Consumers love applications that let them manage, optimise and improve their lives. Apps come in many different categories. they provide basic services to the user, but allow marketers to associate positive experiences about their brand and service, Apps fit into a number of different categories. Whilst Apps that generally mirror the services and content on your website are seen as okay, there is great value in associating your brand with something very useful. Something that makes life easy for a consumer and has a positive rub off on your brand, some examples of these apps are. Like where users can find you, most banks have simple applications to find the nearest ATM or Branch. The AA in Britain has an app that is designed to make your travel around the countryside enjoyable, pointing out restaurants, hotels and attractions. There are apps that put you in the know – Pizza tracker, Taxi Trackers, Gig Finder, even Whereis Everyone They save you money – Ikea in France have an application where you can arrange car sharing to get to their stores! It’s got nothing to do with furniture Allow you to find stuff, that is timely, relevant and valuable, my favourite is the SitOrSquat app from a toilet paper manufacturer, it helps users find toilets, change tables, users can interact with the app to provide feedback. Surf and Snow report apps Keep the user healthy, happy and fit – Map my run, the Brazillian Nivea Sun App, Tools and amenities – Japanese example of axe deodorant and the alarm clock. More than half the White Pages Mobile usage I mentioned before is coming from iPhones.
- Maps are one of the most popular applications on the internet and particularly on Mobile. In terms of Maps, our Whereis mobile sites and Whereis Navigator application sites draw on more than 15 years of digital mapping experience to help Australian’s navigate an extraordinary array of consumer and business needs Our website was launched in 1997, and as it’s grown in functionality and content, we’ve branched out into mobile and personal navigation devices along the way. As a mobile application, Whereis is Sensis’ most used mobile site, demonstrating that maps and local knowledge are extremely valuable on a mobile phone. Location services are one of the most used mobile apps through both mobile phones and sat nav devices. We also provide a Premium GPS navigation tool to advanced handsets called Whereis Navigator. We also integrate the maps into our other products in other ways, as enhancements to Yellow and White Pages, Citysearch etc. We even provide deep links to the maps when we SMS callers to 1234 the details of their query. Providing them with not only the contact details, but a map of the business they were asking after. The big change for mobile is that the handset actually knows where it is, the handset can provide exact location if it has inbuilt GPS functionality, or location can be fairly accurately determined by the distance from nearby cell towers. If you overlay the fact that your phone knows where you are, and it also knows where businesses and people are, add to the equation that the phone has a camera, and you have what’s know as Augmented Reality. Put simply, your phone becomes a window on the world. Just tell it what you are looking for, hold it up, look through the camera and you can highlight what’s happening around you. It’s where our Whereis, Yellow Pages and Citysearch products and features come together, imagine holding up your phone at Darling Harbour, not only can you see regular attractions like the IMAX Theatre or Maritime Museum, you can also see what’s on. What’s showing at the IMAX, what events are being held in the parklands. You might think your Yellow Pages presence is no longer relevant, but as the changes I am talking about develop, your presence, content and time specific events will be even more important as someone holds up their phone for inspiration.
- Precision targeting – it’s now becoming a reality: Last year, we launched customer profile targeting in mobile: More efficient advertising for companies. More relevant content for users. Target not just based on demographics like MOSAIC but on behaviours like purchase live cycle, life changes, interest in specific categories (e.g. auto) We are now taking these capabilities into online as well Geo-targeting is growing rapidly Location services one of the most used mobile apps through both mobile phones and sat nav devices. Enable the search for services based on location and… The targeting of people based on their location Good example from Westpac. 50 types of banner ad creative targeting 50 different postcodes Personalised info like the name of your local manager All targeted to users in those particular postcodes
- Point of sale: Finally, the loop is being completed by the ability to easily buy online: Micropayments now taking off: Apple’s app store is the prime example Now driving a major structural shift in the industry with News Corp’s plans to charge for content Near field communications – the ability to scan and pay for products at the point of sale. Coupons Over 40% of smartphone users have looked for coupons. Online coupon redemptions in US will grow from $8.3bn to $22bn in 2014. Already 5% of all coupon redemptions and growing rapidly. M-commerce Look up the address or store hours of a store I would like to visit: 68% Look for retailer or product coupons: 43% Check the price of an item in a store, to make sure it’s a good deal: 36% Make a purchase after seeing the product in a store: 34% Make a purchase without seeing the product in a store 28% Huge changes coming over the next two years on four fronts: Social Media Mobility Content and Applications Point of sale Together, these advancements spell real change – not just to digital marketing but to the way we engage consumers. The question is, are we ready for it?
- The real promise of the Internet has always been to totally re-write the way buyers and sellers interact. In doing so, totally change the way businesses view marketing and make marketing much more important to the business. You can see in the coming changes how that is possible: Social media that gives us the ability to turn the soapbox of advertising into conversations; The ability for things like social media and video to get buyers and sellers working together and helping each other – e.g. co-creation; Targeting gives us the ability to understand the needs of the person we’re talking to – where they are, what they want, who they are. Point of sale technologies that take media from a communications to a transactional channel – you can complete the purchase cycle; Anytime, anywhere access that means buyers and sellers can reach each other whenever they want to.
- I believe that one day, the Internet will spell the end of the word ‘advertising’. Marketing won’t just involve businesses talking ‘at’ large groups of people. Traditional media and the need to broadcast will always exist But the Internet is giving us the ability to do so much more The future will be individual buyers and sellers helping each other – one at a time: Co-operating, not just co-opting Informing and helping each other make decisions Creating new things together The role of marketing will be much bigger and more valuable to the organisation. Marketing budgets will take a much larger share of corporate expenditure because marketing will be doing so much more for the business.
- The point being that technology has only just begun tinkering with the way people live their lives and businesses operate. We’re not at the end of anything. Not even in the middle. We’re still just at the beginning. We have an opportunity – the people in this room and our peers – to totally re-write the marketing rule book. But we need to lift our sights. Thank you