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PROMOTIONS
2.0   The future of
      interactive marketing
The Big Shift
Advertising isn’t what it used to be
ew technologies,
         N
               d media, and a new
   fragmente
                  owered consumers
generation of emp
                 hanging the world
    are rapidly c
            of advertising...
We’re Spending Less Time Here...




Radio                          TV                                Print
-19%                          -33%                               -30%

   Time spent with traditional media is declining


              Arbitron Research: Internet and Multimedia Study
...And More Time Here.
New technologies are captivating consumers
Media fragmentation
   is increasing.

In 1971, the average
person encountered
    approximately



 500
ad messages a day




David Schenk, Marketing Smog
7




       Today,
    that number
      is almost


5,000
   making it harder to
  engage consumers.




David Schenk, Marketing Smog
ising
                  dvert
                A
     nline
   O                      flat with
                 ve been
        Rates ha               years.”
   “CPM              he past 2
           ults for t
     ning res                   now .01%
   li
dec                   ugh rates
                     o
          e click thr
       rag
    Ave


                                   Paid Search
                   “Losing its luster and expe
                                               cted to peak
                      this year, followed
                                          by a decline.”
                         Borell Associa
                                        tes: The Big S
                                                       hift Research
                                                                     Report (April
                                                                                   2008)
Digital Consumers
         are shifting from passive shoppers to active brand participants


           200 million                                                                               36 million
US consumers have shopped online                                                              Download music or video*
  Over 875 million worldwide***


                                                                 user



                                                                                                                40 million
110 million                                                                                                  Browse the web from
                                                                                                             their mobile phone**
                                                                                          mobile
 Participate in                   customer
Social Networks*


        PASSIVE


  95 million
                                                                                                             50 million
    Participate in                community                                             producer
                                                                                                      Have created online content*
   online Contests
  & Sweepstakes****
                                                             participant

*Pew Internet & American Life   **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report   Image: David Armano
30.0
                                                                                                 2008     2012



                  22.5
($ in Billions)




                  15.0



                   7.5



                         0
                                                                                                        Display
                                                               Search                    Video
                             Promotions    Email




                                    Online Promotions
                                Spending expected to surpass other online advertising
                                          categories over the next 5 years.

                                                   Source: Borell Associates inc. 2008
Because promotions deliver results...


60% 80% 82%
of US consumers                              of online                      of consumers
have purchased                               consumers have                 will provide personal
a brand due to a                             entered a                      information in exchange
promotion.*                                  sweepstakes.**                 for a chance to win.***

*IMI International **eMarketer ***Jupiter Research: Online Privacy Report
The New Marketing Mix
                                    Digital Promotions + Advertising

                                        Quadrant 4 = most value
                                                   Increased Value




                                                                     Increased Value
                                                                                           Promotions + Advertising
High
                                                                                       4   Increased relevance & entertainment
                                                                                           By combining digital promotions &
                                                   4
                        2                                                                  advertising both relevance &
                                                                                           entertainment value is increased
                                                                                           moving closer to Quadrant 4.
 >
> Relevant




                                                                                           Brand Advertising
                                                                                       3   Low Relevance - High Creative



                                                   3
                        1                                                                  Local or Niche
                                                                                       2   High Relevance - Low Creative


                                                                                           Mass Marketing
                                                                                       1
Low
                                                                                           Low Relevance - Low Creative
                                > Entertaining >
             Low                                             High


             Relevance & Entertainment*
             2 axis that create consumer value in marketing:
             While all marketing is capable of playing in quadrant
             four, no single medium has broken through.
             Source: Joseph Jaffe
Old Marketing    New Marketing

  Spray & Pray   Attract & Engage

Large Audience   Smaller Audiences

 Low Relevance    High Relevance

  Low Return       High Return
Promotions 2.0
Marketers are using digital promotions today
    to create buzz & cut through the clutter
Digital Promotions
                      From Brand Awareness to Engagement
                                High Consumer Involvement




                                                >
                                                                         UGC

                                              Instant win




                                                                                   Brand Engagement
Brand Awareness




                                                            Advergames
                                     Social

                                                                               >
                  >


                                              Mobile



                       Sweepstakes

                                                                                                      Core Audience

                                                                                                      Extended Audience
                                                >




                                     Low Consumer Involvement
70%
of CPG Super Bowl Advertisers
used interactive promotions at the core of their 2008 campaigns.




                                                    Source: Promo Magazine
User Generated Contests
deep brand engagement & active participation




        Doritos changes the game
    Contest winner beats out madison avenue
winning USA TODAY'S 2009 Super Bowl Ad Meter
Advergames
    brand messages become viral brand experiences




30% of Super Bowl viewers say they are more likely to visit an
 advertiser's Web site after seeing a Super Bowl commercial*
                     *2009, Harris Interactive Poll
Advergames
 brand messages become viral brand experiences

                                                                            40


                                                                            30


                                                                            20


                                                                            10


                                                                            0
Advergames                    Video                        Tell-a-Friend
Advergames/    Online           Viral           Social
                                                            Tell-a-friend
 Microsites   Contests         Video         Bookmarking


 Viral Marketing Tactics with “Greatest Results”*


               * 2008 eMarketer, Viral Marketing Survey
Mobile Integration
            participation anytime or anywhere




Largest US SMS Promotion                    New technologies driving innovation

       97% of consumers carry their phone at retail*
                  * Promotion Marketing Association Digital Summit
Inclusive Experiences
        Everyone wins something. Someone wins everything.




One person win a trip to the World Series   One college wins a private concert
      Everyone wins a taco if base            with the Dave Matthews Band
        is stolen during the game                Everyone watches online
Social Promotions
       promotions worth talking about




   Facebook: 220 million visitors monthly*
      Super Bowl: 98 million viewers**
People Magazine: 3.6 million readers monthly**
                *Comscore **infoplease.com
Promotion Hell
Poor planning can lead to big problems
Warning!
Promotions are regulated & must comply with federal and
     state laws to avoid civil & criminal penalties.
Axl Rose vs. Dr. Pepper
        Everyone in America gets a Dr. Pepper (sort of)

No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
Rock the Vote
Starbucks and Krispy Kreme face penalties for election day giveaways

         Federal Statute prohibits any organization from
                 “providing rewards for voting.”
Pepsi Stuffed
          Harrier Jet a steal at 700,000,000 points

Student sues over deceptive advertising & business practices
       after acquiring enough points to purchase Jet.
 Result: Out of court settlement and a whole lot of bad PR.
Promotions 3.0
What’s next for advertising & promotions?
Clutter Continues
Brands will look for new ways to engage consumers
           as media & product proliferation expands




                                                      M
Mobile Dominates
 Mobile & Wireless devices will become the next
                   dominant consumer platform




65 Million U.S. Mobile Internet users in 2008 and growing*
                 * Promotion Marketing Association Digital Summit
Social Media Expands
    Social Media is bigger than you think... and it’s just getting started




U.S. Social Network Usage
                           35%
All Adults
                           75%
Adults 18-24
* Pew Internet & American Life Project, December 2008
Legal Issues Continue
   Privacy & Legal issues will continue to
    create new challenges for marketers
+
David Griffith is managing director of
teamDigital, a brand based digital agency
specializing in technology driven promotions
that engage consumers, create loyalty, and
increase brand value.

Blog
www.Promotions2.com

Website
www.teamDigital.com

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Promotions 2.0 Team Digital

  • 1. PROMOTIONS 2.0 The future of interactive marketing
  • 2. The Big Shift Advertising isn’t what it used to be
  • 3. ew technologies, N d media, and a new fragmente owered consumers generation of emp hanging the world are rapidly c of advertising...
  • 4. We’re Spending Less Time Here... Radio TV Print -19% -33% -30% Time spent with traditional media is declining Arbitron Research: Internet and Multimedia Study
  • 5. ...And More Time Here. New technologies are captivating consumers
  • 6. Media fragmentation is increasing. In 1971, the average person encountered approximately 500 ad messages a day David Schenk, Marketing Smog
  • 7. 7 Today, that number is almost 5,000 making it harder to engage consumers. David Schenk, Marketing Smog
  • 8. ising dvert A nline O flat with ve been Rates ha years.” “CPM he past 2 ults for t ning res now .01% li dec ugh rates o e click thr rag Ave Paid Search “Losing its luster and expe cted to peak this year, followed by a decline.” Borell Associa tes: The Big S hift Research Report (April 2008)
  • 9. Digital Consumers are shifting from passive shoppers to active brand participants 200 million 36 million US consumers have shopped online Download music or video* Over 875 million worldwide*** user 40 million 110 million Browse the web from their mobile phone** mobile Participate in customer Social Networks* PASSIVE 95 million 50 million Participate in community producer Have created online content* online Contests & Sweepstakes**** participant *Pew Internet & American Life **Nielson Mobile study *** ComScore ****NY Times E-Commerce Report Image: David Armano
  • 10. 30.0 2008 2012 22.5 ($ in Billions) 15.0 7.5 0 Display Search Video Promotions Email Online Promotions Spending expected to surpass other online advertising categories over the next 5 years. Source: Borell Associates inc. 2008
  • 11. Because promotions deliver results... 60% 80% 82% of US consumers of online of consumers have purchased consumers have will provide personal a brand due to a entered a information in exchange promotion.* sweepstakes.** for a chance to win.*** *IMI International **eMarketer ***Jupiter Research: Online Privacy Report
  • 12. The New Marketing Mix Digital Promotions + Advertising Quadrant 4 = most value Increased Value Increased Value Promotions + Advertising High 4 Increased relevance & entertainment By combining digital promotions & 4 2 advertising both relevance & entertainment value is increased moving closer to Quadrant 4. > > Relevant Brand Advertising 3 Low Relevance - High Creative 3 1 Local or Niche 2 High Relevance - Low Creative Mass Marketing 1 Low Low Relevance - Low Creative > Entertaining > Low High Relevance & Entertainment* 2 axis that create consumer value in marketing: While all marketing is capable of playing in quadrant four, no single medium has broken through. Source: Joseph Jaffe
  • 13. Old Marketing New Marketing Spray & Pray Attract & Engage Large Audience Smaller Audiences Low Relevance High Relevance Low Return High Return
  • 14. Promotions 2.0 Marketers are using digital promotions today to create buzz & cut through the clutter
  • 15. Digital Promotions From Brand Awareness to Engagement High Consumer Involvement > UGC Instant win Brand Engagement Brand Awareness Advergames Social > > Mobile Sweepstakes Core Audience Extended Audience > Low Consumer Involvement
  • 16. 70% of CPG Super Bowl Advertisers used interactive promotions at the core of their 2008 campaigns. Source: Promo Magazine
  • 17. User Generated Contests deep brand engagement & active participation Doritos changes the game Contest winner beats out madison avenue winning USA TODAY'S 2009 Super Bowl Ad Meter
  • 18. Advergames brand messages become viral brand experiences 30% of Super Bowl viewers say they are more likely to visit an advertiser's Web site after seeing a Super Bowl commercial* *2009, Harris Interactive Poll
  • 19. Advergames brand messages become viral brand experiences 40 30 20 10 0 Advergames Video Tell-a-Friend Advergames/ Online Viral Social Tell-a-friend Microsites Contests Video Bookmarking Viral Marketing Tactics with “Greatest Results”* * 2008 eMarketer, Viral Marketing Survey
  • 20. Mobile Integration participation anytime or anywhere Largest US SMS Promotion New technologies driving innovation 97% of consumers carry their phone at retail* * Promotion Marketing Association Digital Summit
  • 21. Inclusive Experiences Everyone wins something. Someone wins everything. One person win a trip to the World Series One college wins a private concert Everyone wins a taco if base with the Dave Matthews Band is stolen during the game Everyone watches online
  • 22. Social Promotions promotions worth talking about Facebook: 220 million visitors monthly* Super Bowl: 98 million viewers** People Magazine: 3.6 million readers monthly** *Comscore **infoplease.com
  • 23. Promotion Hell Poor planning can lead to big problems
  • 24. Warning! Promotions are regulated & must comply with federal and state laws to avoid civil & criminal penalties.
  • 25. Axl Rose vs. Dr. Pepper Everyone in America gets a Dr. Pepper (sort of) No Artist Approval + No Rules + Technical Problems = Pending Lawsuit
  • 26. Rock the Vote Starbucks and Krispy Kreme face penalties for election day giveaways Federal Statute prohibits any organization from “providing rewards for voting.”
  • 27. Pepsi Stuffed Harrier Jet a steal at 700,000,000 points Student sues over deceptive advertising & business practices after acquiring enough points to purchase Jet. Result: Out of court settlement and a whole lot of bad PR.
  • 28. Promotions 3.0 What’s next for advertising & promotions?
  • 29. Clutter Continues Brands will look for new ways to engage consumers as media & product proliferation expands M
  • 30. Mobile Dominates Mobile & Wireless devices will become the next dominant consumer platform 65 Million U.S. Mobile Internet users in 2008 and growing* * Promotion Marketing Association Digital Summit
  • 31. Social Media Expands Social Media is bigger than you think... and it’s just getting started U.S. Social Network Usage 35% All Adults 75% Adults 18-24 * Pew Internet & American Life Project, December 2008
  • 32. Legal Issues Continue Privacy & Legal issues will continue to create new challenges for marketers
  • 33. + David Griffith is managing director of teamDigital, a brand based digital agency specializing in technology driven promotions that engage consumers, create loyalty, and increase brand value. Blog www.Promotions2.com Website www.teamDigital.com