The document discusses how the internet has led to a major shift in media consumption and online advertising. Some key points: 1) Internet usage has exploded globally to over 1.46 billion users, with penetration rates over 60% in OECD countries and 22% worldwide. This has significantly impacted traditional media like newspapers, magazines, radio and TV as consumers shift time and attention online. 2) As part of this media shift, online advertising revenues have increased dramatically in both the US and Europe, growing over 20% annually in many cases. The online advertising market is expected to double in size from 2008 to 2013 in the US based on forecasts. 3) With the rise of Web 2.0 technologies and user

1. Push to Pull
Publish C t t
P bli h Content
Brand Become Media

2. Media Shift

3. Both B2C/B2B
consumers
&
users
shift to Internet

4. Internet Users Internet swell to 1.46 billion users
31.35% Up
Source：www.InternetWorldStats.com

5. 22% : Worldwide penetration Internet Penetration
Source：www.InternetWorldStats.com

6. Internet Penetration -2
Average Internet penetration in OECD is more than 60%
* Red bar denote more than 70% penetration.
Source：www.InternetWorldStats.com

7. US
USA - 1
Newspaper circulation & Network/Local TV viewership down, Cable TV stagnant
Source：Journalism.org The State of the News Media 2008

8. USA - 2
News magazine readers growing older, Radio reach dip, Hispanic Newspaper
circulation down, while online users up
Source：Journalism.org The State of the News Media 2008

9. Europe
Newspaper circulation in UK/Germany/France down. Magazine Ad revenue down.
Increasing Internet users since 2000 gave huge impact on print media.
UK Newspaper circulation Germany Newspaper circulation French Newspaper circulation
UK Magazine Ad revenue
g Germany Magazine Ad revenue
y g French Magazine Ad revenue
g
Source：European Commission Task Force on Co-ordination of Media Affairs 2006-2007

10. US-
US-Internet Reach
Internet reach exceed TV in the morning and early evening
Source：comScore, Inc.

11. US-
US-Internet Usage O
Excluding work usage, Internet hold 17% of media consumption D
Source：comScore, Inc.

12. Europe-
Europe-Internet Usage + Influence
Media time of Intern in UK/Germany second to TV, in France Top,
Influence of Internet come to Top in 3 countries.
Source：Harris Interactive / Fleishman-Hilliard Digital Influence Index

13. Europe –
Other media Usage + Influence
Time spent in other media and influence lessened. お
Source：Harris Interactive / Fleishman-Hillard Digital Influence Index

14. Internet spread all over,
lessen other media consumption
and impact on purchase decision,
so that

15. US Online Ad
Internet Ad revenue increased more than 20% each year
7.6%*
5.9%
4.7%
3.7%
3 7%
Share of Ad 3%
+22% +32% +30% +35% +26%
% 3 % 30% 35% %
Source: IAB.org * Ad Age 「100 Leading National Advertisers」

16. US Online Ad O
Increase of Online ad exceed other media i
Online took only 13 years to reach
$20 Billion.
Source：comScore, Inc. Source：Marketing & Media Ecosystem 2010 (ANA, IAB, AAAA, Booz | Allen | Hamilton)

17. Europe Online Ad k
Share of Online Ad revenue greater than US P
Europe Online Ad market may pass US in 2010 O
• €11.2 billion in total
• 40% up（US:€14. billion, 26%up）
• Ad spend of Europe may pass US in
2010.
• UK: ￡2.8 billion, 38% up
2005:7.8% (share of ad spend)
2006:11.4% (ditt )
2006 11 4% (ditto)
2007:15.3% (ditto)
Source : IABEuropeOnline

18. Even
conservative
Big Brands like

19. MS and GM：
GM：
Shift budget to Online
MS shift budget to Online
(Ad budget was $912 million in 2006 and online was $82 million,
8.9％)
Budget of B2B campaign for “Heroes Happen Here/The
Heroes
Server Unleashed” is $150 million
Significant portion is Online + IT magazine
No TV ad
MS intends to shift at least half its marketing
budget to online in the next two years
GM will shift half of $300 million ad budget
from TV and print to digital and direct
consumer channel in 3 years.
y
* Korean Hyundai will double online ad
budget
b dget as well.
ell
Source：Adage 2008/3/18
Source : BtoB Online 2008/3/10 http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080310/FREE/188104495/1109/rss02&rssfeed=rss02

20. US Online Ad forecast：eMarketer
forecast：
Even though slightly lowered, eMarketer estimate 10% - 20% > increase each year.
In 2013 Online ad spending will be doubled from 2008.
Source：eMarketer 2008/8/13 http://www.emarketer.com/Article.aspx?id=1006477&src=article1_newsltr

21. OECD
Internet users 700 million (48%)
explode to Power of TV,
Penetration 60%
1.46 billion Newspaper,
Penetration 22% Magazine, Radio
lessened
Big impact on
Both MS and GM
purchase decision
will shift to online
(UK, Germany,
France)
F )
Internet usage Online Ad revenue increase:
increase while USA ($20 billion in 13 years)
other media Europe (10%+ share in 7 countries),
decrease
d UK (15.3%)
Media Shift
Internet have greatest power
Internet is where Consumers and users gather now.
Media shift is very clear and online ad revenue continue to increase.
Now, Internet shift from Web 1.0 to Web 2.0

22. Web 2.0

23. Stormy R
St Revolution
l ti http://www.flickr.com/photos/pingnews/493761196/
Creative Commons – Attribution Share Alike License
David Shapinsky

24. Most marketers use legacy mass media and/or
Web 1.0 as a broadcast platform.
10 platform
They use it to push
and shout
shout.
Sometimes that works.
http://www.slideshare.net/mattanium/the-future-of-advertising-313836

25. But,
a day when marketers
use Internet
as a platform pushing
message and information
as legacy mass media
g y
is over.
http://www.slideshare.net/nschock/web-20-and-the-online-conversation

26. Web 1.0 → Web 2.0
Since middle of 2005 Web 2.0 sites pass reach of mass media web site,
and gap have been getting wider.
Source：Alexaholic.com Note : Alexaholic.com have ceased to exist.

27. 475 million (active users, 16-54 years) Web 2.0 Space Size
248 346
million million
uploaded view Blog
photo
h 184 million
illi
394 million started own
viewed Blog
video
303 million
share video
183 million
uploaded video
215 million
downloaded 160
Podcast million
receive
216 million RSS feed
downloaded
video Podcast
Social
Bookmarking
272 million have
SNS profile
Source: Universal McCann Comparative Study on Social Media Trends April 2008

28. Many applications, service, tools
Content sharing, collaboration, tagging, recommendation, rating and etc.

29. Social Media put Consumers in
control of the conversation.
conversation
Power shift in addition to Media shift.
Every consumer is …
E i
… a publisher …a DJ …an expert …a broadcaster …a critic
…an editor …a network …syndicated
http://www.slideshare.net/nschock/web-20-and-the-online-conversation

30. Web 2.0 ＝ Social Media
Media structure changed from mass media One
O way of pushing message to participating,
f hi t ti i ti
to social media sharing, conversational and interactive media.
Consumer & Users make Media.
Legacy mass media Social media
Space defined by Media Owner Space defined by Consumer
Brand in control Consumer in control
One way / Delivering a message Two way / Being a part of a conversation
Repeating the message Adopting the message / beta
Focused on the brand Focused on the consumer / Adding value
Entertaining Influencing, involving
Company created content User created content / Co-creation
http://www.flickr.com/photos/pingnews/493761196/
Creative Commons – Attribution Share Alike License
http://www.slideshare.net/neilperkin/whats-next-iAn-media David Shapinsky

31. Web 2.0 spread Not only
B2C, but also B2B
IT decision makers consume social media for 4 hours
IT decision makers trust UGC more than mass media and corp. web
90% of B2B buyers view online video
63% of B2B buyers view online video for business
and technology information
80% of B2B buyers read Blog
70% of B2B buyers recommend Blog to co-workers and
colleagues
Blog influenced IT purchase decision of
53% of B2B buyers
69% of B2B buyers have visited SNS
Source： ITtoolbox/PJA IT Social Media Index Wave I & II, Knowledgestorm / Universal McCann Emerging Media Series

32. Web 2.0 tools companies count A
Companies are adopting Web 2.0 tools for broader business practice P
Source：McKinsey Building the Web 2.0 Enterprise

33. Global companies adopting
世界的なグ
世界的なグローバル企業の51%が導入
バル企業の51%が導入
Web 2.0 tools most
Source：Forrester Research “Groundswell Web 2.0”

34. Mass Media adopting Web 2.0
p g
Blog, YouTube, Facebook, mobile, LinkedIn, embedding video, user comment, etc.

35. 2006 Current
Web 2.0
eb 0
Yes, Web 2.0.
Web 2.0 control engagement.
Welcome to Web 2 0 world
2.0 world.

36. Web 2.0 Big impact on media scene and marketing
Big change in Media structure
From brands & mass media To consumers & users publishing content
Consumer & users become media
Open information sharing conversation and engagement
sharing,
Consumers in control
Mass media adopting Web 2.0
Big impact on companies
Web 2.0 spreading to B2C and B2B
Web 2 0 spreading to global companies
2.0
Web 2.0 leading to Marketing 2.0
20 20
http://www.flickr.com/photos/kieranlynam/413096058/
CC Attribution License
Kieran Lynam

38. Kodak, Dell, Sun : Blog Marketing
Appoint Chief blogger, Open conversation with users & investors
blogger investors,
CEO + 4,300 > bloggers

39. HP, IBM : YouTube Marketing
On demand video Utilizing content sharing tool of YouTube
video,
Spreading exposure to the world
HP running YouTube channel of “What do
What IBM WebSphere educate / train companies for
p p
you have to say?” SOA.
http://www.youtube.com/user/HPWhatdoyouhavetosay

40. Amex, Visa : Forum & SNS
Amex : Visa :
Open Forum sharing ideas and advice from Providing application of exchanging
experts, providing various resources and ideas, contacting suppliers for SMB at
services such as financial monitoring, Facebook, enabling to access articles of
improving cash fl
i i h flow and cost cutting for
d t tti f WSJ and video by Entrepreneur com More
Entrepreneur.com.
members. than 100,000 companies participate in US.
(Planning for UK)
http://www.openforum.com/index.jspa http://www.facebook.com/apps/application.php?id=24249628048&ref=s

41. Cisco, Motorola, Xerox :
IT Briefing Center
Analyst briefing and Brands expand content
Custom Webcast channel and touch point
with lead generation for qualified users
via B2B specific
i ifi
channel

42. Marketing 2.0 Big Change 1
Push to Pull
Product Centric to Consumer Centric
Direct conversation with consumers via Web 2.0
Increase online touch points
p
Promoting engagement, user feed back, user insights and
collaboration
http://www.slideshare.net/kimster2000/marketing-20-presentation

43. Marketing 2.0 Big Change 2
Brands
Publishing Content
Brands create and publish content
Expose content via Web 2.0, promote sharing
and re-exposing content
Brand s
Brand’s becoming Media
Mass media position as message channel fall
http://www.flickr.com/photos/paytonc/483421253/ http://www.slideshare.net/kimster2000/marketing-20-presentation

44. This
leads
to…..
to

45. The end
of
Advertising
g
as
we know it
The next 5 years will hold more change for
the advertising industry than the previous 50
did.
Empowered consumers, more self-reliant
E d lf li t
advertisers and ever-evolving technologies
are redefining how advertising is sold,
created, consumed and tracked. Traditional
advertising players – b d
d ti i l broadcasters,
t
distributors and advertising agencies – may
get squeezed unless they can successfully
implement consumer, business mode and
business d i i
b i design innovation.
ti
Source：IBM Global Business Service “The end of advertising as we know it.”

46. The Future of Advertising
Talking to ad executives one gets the sense that few know how to
executives,
cope even with the changes to the media landscape that have already
happened, let alone the ones that are still to come.
Simply put, the concept of mass media has ended. It is less clear what
will replace it and how advertising will play a role
role.
By Media shift + Web 2.0 + Marketing 2.0
Advertising is in the
stage of greatest change
Source：The State of News Media 2008 http://stateofthemedia.org/2008/narrative_special_advertising.php?media=13

48. By the
B th way,
Do you know?

49. Online ad on ArsTechnica or NYTimes can be
viewed f
i d from Japan
J

50. Online ad on Businessweek or TechCrunch can
b seen f
be from Japan
J
It’s because
beca se

51. without geo-Targeting
g g g
any ad can be seen from anywhere.
(
(Geo-Targeting require p
g g q premium charge of 15 to 30%)
g )
This means…
means
Courtesy: NASA / Goddard Space Flight Center

52. More than half of audience of US Web
sites is from abroad
not only top Web sites, but also business, IT and SNS sites as well
http://online.wsj.com/article/SB121563492172840249.html?mod=dist_smartbrief

53. IT Blog, business SNS as well
30% - 80% of UV is non-US
Online ad spread overseas together with content
UV = Unique Visitor
Source：Alexa.com

54. General, business, Finance, PC
site as well
20% - 70% of UV is non-US, Online ad spread overseas together with content
UV = Unique Visitor
Source：Alexa.com

55. Reason i
R is
simple
p

56. Lingua Franca power of English
g p g
It’s quite natural as people in many countries speak English.
China :
According to People’s Daily Online
March 31, 2006,
there are about 300 million people
th b t illi l
learning English language in
China,
accounting for one-fourth of the
country's total population. Among
t ' t t l l ti A
them more than 100 million are
students, from primary school to
university. The English-learning
population i th country will
l ti in the t ill
surpass the total population
whose mother language is English
June 17, 2008
J 17
More than 1 million people took
the IELTS last year, making it the
world's most popular English
language t t
l test.
Source : English Next、 British Council 2006
Source : People’s Daily Online http://english.peopledaily.com.cn/200603/31/eng20060331_254924.html http://english.people.com.cn/90001/6431203.html

57. US companies intend to
advertise domestically,
domestically,
but
spread exposure
globally.
1) Who access US Web/Blog/SNS site?
2) Effect of spreading online ad globally?
Eff t f di li d l b ll ?

58. 1) Who access from abroad?
They are
Early Adopters and Influencers They access US Web/Blog/SNS sites for latest
news and information even though they are not
who need latest news and information of US English,
politics, economy, finance,
politics economy finance about internet
internet,
software, white paper, case study, music, so that …
video, PC for own business and personal
interest.
http://en.wikipedia.org/wiki/Image:DiffusionOfInnovation.png

59. Traffic of niche Blog site like
BrandingStrategyInsider come from all
over the world as it’s in Ad Age’s Power
150 blog and provide insights news and
insights,
information
Early adopters need.
Traffic to BrandingStrategyInsider.com ：Largest red dot indicate more than 1,000 visits.

60. Among early adopters and influencers
accessing US Web/Blog/SNS sites
sites,
what are top bloggers in non English country
doing?

61. Top
German
Blog
http://www.deutscheblogcharts.de/index.html
h // d h bl h d /i d h l
Posts of BasicThinkingBlog cover, refer & translate
TechCrunch, ArsTechnica, ReadWriteWeb, TechMeme, GigaOM, NYT, BusinessWeek, Guardian, FT,
TimesOnline, Reuters and so on., and publish content to domestic users.
, , p
Also SaaS, SalesForce, SAP, WSJ, Ad Age, LinkedIn are covered.

62. Top
p
French
Blog
Bl
http://www.ft.com/cms/s/0/87706c4e-
57be 11db be9f
57be-11db-be9f-
0000779e2340.html?nclick_check=1
Posts of Loic Le Meur Blog cover, refer & translate
cover
TechCrunch, ArsTechnica, ReadWriteWeb, TechMeme, GigaOM, NYT, BusinessWeek, Guardian, FT,
Reuters and so on as BasicThinkingBlog, and publish content to domestic users.

63. Not only BasicThinking and Loic Le Meur but also
Meur,
every early adopters and influencers bring back
content from US/English sites and publish/translate
them in their own countries.
IT, Internet, Online Ad, Game, Software, PC and many other
blog sites in Japan are full of US content.

64. And, users who read content of early adopters write
, y p
Web/Blog/SNS content,
link to them, share content with friends and colleagues.
, g
As a result, content spread all over,
Online ad exposure spread all over as well.
p p
http://www.flickr.com/photos/aussiegall/297237720/
http://www.flickr.com/photos/maxterrulz/1529184389/in/set-72157603968489307/

65. 2-1) Impact of online ad exposure
spilling over
US domestic brands + Foreign sales subsidiaries VS. US Global brands
US Domestic brands
Big waste of Online ad
g
Foreign sales subsidiaries impressions
in USA
TV, Print, Online Ad,
OOH, Etc.
OOH Etc Content Brand exposure outside of
p
USA is nothing but waste
of ad budget
US Internet users Early adopters
y p
215 million 13.5 % (197 million)
No responsibility and No
budget for Brand Internet users
awareness and Brand 1,460 million
building in countries other
than USA

66. 2-2) Impact of online ad exposure
) p p
spilling over
US domestic brands + Foreign sales subsidiaries VS. US Global brands
g
US global brands
g WOM, TEL,
Email, Brand Awareness &
B dA
Face to Face Brand Building
Worldwide
TV, Print, Online Ad, sales
OOH, Etc.
OOH Etc Content opportunity
available
US Internet users Early adopters
y p
215 million 13.5 % (197 million)
Increase
Internet users
Worldwide 1,460 million
Brand
Awareness

67. Early adopters and influencers in the world
access US or E li h W b/Bl /SNS/ id sites
English Web/Blog/SNS/video it
as well as company web site
for their business and personal interest
as they understand English.
y g
They are exposed to overwhelming
online ad as well as
content company created
http://www.flickr.com/photos/good-karma/1362273975/

68. US global brands are un-intentionally
achieving brand awareness
to the early adopters and influencers
y p
in the world.
And the effect of brand awareness spread to
domestic users of each country
country,
and brand awareness is building up.
http://www.flickr.com/photos/mesample/453226792/

69. Exposure on US sites
p
spill over to the world
But Japanese and non-US global
companies lack brand exposure in
US sites,
online exposure gap with US
counterpart will widen.
http://www.slideshare.net/montymetzger/marketing-innovation

70. 1st
Question

71. Who s
Who’s in charge of
this spillover
p
and
Global Online Branding?
Gl b l O li B di ?

72. Branch office?
Affiliate?
Subsidiary?
S b idi ?
or
HQ?

73. Only
if
HQ
Q
took
initiative
of

74. Global Branding
Media Shift
Web 2 0
W b 2.0
Marketing 2.0
Spillover
http://flickr.com/photos/aussiegall/759309122/

75. However,
However
Japanese and non-US companies / Brands are not
Social, Innovative, nor Interactive. Both B2C and B2B brands
lose opportunity to reach worldwide users
who are migrating to Web 2.0 and further to 3.0.
With current situation that US brand exposure keep
spilling over to the world, value of Japanese and non-US
http://www.flickr.com/photos/fxp/494636811/
CC Attribution-NoDerivs License Brands will fall off.
Felix

76. 2nd
2 d
Question

77. While US content and
online ad exposure spill
over t the world,
to th ld
http://www.flickr.com/photos/claudio_ar/2211531885/

78. and while early adopters and
y p
influencers are spreading
content and Brands worldwide,
t t dB d ld id
http://flickr.com/photos/hobo_pd/33423918/

79. with out-dated strategy
gy
and means
http://www.flickr.com/photos/bilg/91927634/
CC Attribution-NoDerivs License
William Gantz

80. how can you reach and engage with
y g g
consumers and users of B2C/B2B at
Web 2.0
W b 2 0 space or b
beyond where
d h
they are?
http://www.flickr.com/photos/dankamminga/17580365/
CC Attribution License
Dan Kamminga

81. Best is
to learn
From
Forerunners

82. Cisco：Human Network
5 million visitors annually (80% new visitor)
Target audience awareness up 80%
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080407/FREE/39122686/1109/ISSUENEWS http://www.cisco.com/web/thehumannetwork/index.html

83. Oracle
Marketing budget was 5% 10 y
g g years ago, now 1.7% of
g
revenue.
Online ad budget is 36%, OOH 29%, print 9%.
Attendees of events increased by 10% in 2008, won deal
linked to event was 56% average deal size was up 149%
56%, 149%.
Number of forum increased 22%, with 94% more posting.
Webcast
Oracle consolidated all its marketing
Judith Sim senior VP-CMO
Sim, VP CMO operations, will run 26 global campaigns
“More and more people are staying for a longer period and conduct more than 7,000 events.
of time because of Web 2.0 technology.
It's working, but y have to track it in a different way.”
g you y Social news release cut PR budget in half
half,
realizing cost saving of $4.6 million.
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080613/FREE/174996681/1078
http://www.btobonline.com/apps/pbcs.dll/article?AID=/20080714/FREE/995288048

84. GM：FastLane Blog
Estimated i k dj t d
E ti t d risk adjusted ROI i 2007 was 39%
in
Forrester Research estimate
running cost of FastLane
Blog and benefits of
customer insights, blog
visibility, press coverage,
WOM.
ROI was 99% in 2005.
Source：BtoB Online 「Social Media How Online Buzz Drives Buyers to Your Doorstep」

85. INC.500
49% of companies within the Inc. 500 use SNS, 45%
use online video, and 39% use Blog.
Fortune 500 Business Blog
62 (12.4%) of the Fortune 500 are blogging as of Sep 9, 2008.
http://www.socialtext.net/bizblogs/index.cgi Source：UMass / Social Media in the Inc. 500: The First Longitudinal Study （pdf）

86. Too far away?
Why not try this first?

87. Web visitor Survey
IBM, Siemens, Phili
IBM Si Philips, Samsung
S

88. Ideas, feedback and be sociable
Dell, HP IBM Philips, Oracle & others
D ll HP, IBM, Phili O l th

89. Share Information
Walmart, Nokia, Dell, IBM & others
W l t N ki D ll th

90. Or,
Simply drive
traffic from
Web 2.0 sites

91. Korea : Seoul city
Use niche Blog such as Cyberjournalist and gaijinsmash to spread exposure to Web 2.0
space, generating links, referrals, buzz to increase traffic
http://japanese.seoul.go.kr/ja/index_j.cfm

92. Otherwise,
Otherwise

93. Web Blog RSS E-PR
Podcast Mash-
Mash-up
Your brand will
be swept away Mobile
with
Webcast
Media Shift YouTube
Web 2.0
20
Marketing 2.0
g SNS
Spillover Forum
http://www.flickr.com/photos/eppstein/466553161/

94. Best
Strategy
gy
is

95. Push to Pull
Publish Content
Become M di
B Media
Toward Global
Online Branding
g

96. Thank You
http://www.flickr.com/photos/batrace/144967407/
Takashi Kasai kasai.powerrep@gmail.com CC attribution license
oscar federico bodini