David Lankelevich of E Marketer presented Seven Strategies for Surviving the Downturn at the Austin American Marketing Association (AMA) monthly Power Lunch Series on January 15, 2009. Interested in more marketing programs and networking? Visit the Austin American Marketing Association website (www.austinama.org) for coming events and the AMA blog (www.austinama.org/blog) to be a part of the conversation.

1. eMarketer Presents
Digital Marketing Now:
Seven Strategies for Surviving the Downturn
David Iankelevich
Vice President, Sales
January 15, 2009

2. Today’s Agenda
• Who is eMarketer
• Economic impact on media spending
• Internet spending
• Seven strategies

3. eMarketer Sees and Analyzes Information
from Multiple Sources

4. eMarketer Sees and Analyzes Information
from Multiple Sources

6. Media Spending Growth in the US
Date 2008 2009
Barclays Capital Dec.
Dec 2008 -5 0%
5.0% -10 0%
10.0%
GroupM Dec. 2008 0.3% -3.2%
BMO Capital
p Oct. 2008 -1.1% -1.9%
Citi Investment Nov. 2008 -1.8% -3.6%
eMarketer Nov. 2008 -1.0% -3.7%
Collins Stewart Nov. 2008 0.5% -2.0%
UBS Oct. 2008 2.5% -6.0%
Morgan Stanley Oct. 2008 -2.1% -5.0%
Myers Publishing Oct. 2008 -1.3% -4.0%
Wachovia Oct. 2008 -0.8% -0.8%
ZenithOptimedia Dec. 2008 -3.8% -6.2%

7. What are marketers
seeing for their
traditional media budgets?
g
85%
59%
48% will cut
—MarketingSherpa, Oct.t2008
—MarketingProfs, O t 2008
M —Epsilon, Sept.Sept.
M kEtiti Sh S f t S
k il P 2008
(n = 175 CMOslargesenior marketers)
(n = 400600 marketers)
(n = and companies)

8. US online ad spending growth for
2008
16.9%
Barclays (Oct '08)
16.0%
Collins Stewart (Nov '08)
16.0%
GroupM (Dec '08)
13.8%
Myers (Oct '08)
13.0%
BMO Capital (Oct '08)
p ( )
12.0%
MAGNA (Oct '08)
11.6%
ThinkPanmure (Oct '08)
11.5%
11 5%
Morgan Stanley (Oct '08)
11.4%
Citi (Nov '08)
11.3%
eMarketer (Nov '08)
10.4%
Borrell Assoc. (Nov '08)
Source: eMarketer, Dec, 2008

9. US online ad spending growth for
2009
14.8%
Jupiter (Dec '08)
??? 14.1%
Barclays (Oct '08)
13.5%
13 5%
Myers (Oct '08)
M (O t
13.5%
MAGNA (Oct '08)
13.0%
BMO (Oct '08)
10.0%
10 0%
Collins Stewart (Nov '08)
08)
10.0%
Wachovia (Oct '08)
9.7%
Morgan Stanley (Oct '08)
8.9%
8 9%
eMarketer (Nov '08)
08)
7.2%
Borrell (Nov '08)
5.8%
Citi (Nov '08)
5.0%
???
GroupM (Dec '08)
p( )
3.0%
ThinkPanmure (Oct '08)
Source: eMarketer, Dec, 2008

10. US online ad spending growth for
2009
13.5%
Myers (Oct '08)
13.5%
13 5%
MAGNA (Oct '08)
13.0%
BMO (Oct '08)
10.0%
10 0%
Collins St
C lli Stewart (Nov '08)
t (N
10.0%
Wachovia (Oct '08)
9.7%
9 7%
Morgan Stanley (Oct '08)
8.9%
eMarketer (Nov '08)
7.2%
Borrell (Nov '08)
Source: eMarketer, Dec, 2008

11. % of marketers planning to increase their
online ad budget – marketing execs
55% of global despite the recession
g p
plan to cut spending on traditional
Forrester (Spring '08) N = 333 26%
media in order to fund increased
Advertiser Perceptions (May '08) N efforts
online = 1,811 72%
31%
N = 400
MarketingSherpa (Sep '08)
63%
Epsilon* (Sept '08) N = 175
62%
MarketingProfs (Oct '08)
08) N = 600
*63% of (175) CMOs said they had increased their online budgets in the past year

12. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i search
2K doing h
3. Don’t ignore the power of branding online
4. Stay close to the customer
“This is the age of accountability
5. Engender Trust
for the marketing profession
profession.
6. Engage with online video
--Robert Liodice, Association of National Advertisers,
, ,
7. Test, test
7 Test test, test
CEO

13. Need to break down the data
silos
• Search – Display ads
• O li – Offli media
Online Offline di
• Online – Offline channels
“When the going gets tough, information
gives comfort you are on the right track”
track
- - David Lowden, chief executive, Taylor Nelson Sofres,

14. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
3. Don’t ignore the power of Branding online
4. Stay close to the Customer
5. Engender Trust
6. Engage with online Video
7. Test, Test
7 Test Test, Test

15. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
“As the ad the power of Branding online a
3. Don’t ignore industry braces for
deep close to the Customer
d Stayrecession, someone needs
i d
4.
to Engender Trust search advertising
5. notify the
y g
business.” online Video
6. Engage with
7. Test, Test
7 Test Test, Test
--Mike Shields, MediaWeek, 10/15/08

16. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
“As the ad the power of Branding online a
3. Don’t ignore industry braces for
“You can track every cent and
y
deep close to the Customer
d Stayrecession, someone needs
i d
every click. Search is comfort
4.
to Engender Trust search advertising
5. notify the
y g
food for marketers ”
marketers.
business.” online Video
6. Engage with
--Even Andrews, Forrester Research
,
7. Test, Test
7 Test Test, Test
--Mike Shields, MediaWeek, 10/15/08

17. Search Ad Spending Growth for
2009
24.0%
Magna
23.0%
23 0%
Oppenheimer & Co. Inc.
Co Inc
21.0%
BMO Capital Markets
17.3%
JP Morgan
14.9%
eMarketer
14.0%
Citi Investment Research
13.7%
Borrell
13.0%
Collins Stewart
13.0%
ThisPanmure

18. Search is ROI on steroids:

19. Search is ROI on steroids:
Search engine optimization (SEO) was
rated as the best-performing online
best performing
advertising tactic by 57% of online
marketers,
marketers per MarketingSherpa (2007)

20. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
3. Don’t ignore the power of Branding online
4. Stay close to the Customer
5. Engender Trust
6. Engage with online Video
7. Test, Test
7 Test Test, Test

21. #3. Anti-Search: Don’t Ignore the Power of
Branding Online
Customer Awareness/Branding
Relationship
Management
Attitudes,
Interest
CONSUMER
Post-sales
support
Pre-purchase
Information
Fulfillment Gat e g
Gathering
Sale/Purchase

22. #3. Anti-Search: Don’t Ignore the Power of
Branding Online
Customer Awareness/Branding
Relationship
Management
Attitudes,
Interest
Marketing opportunity
CONSUMER
Post-sales
here to influence online
ee o ue ce o e
support
Pre-purchase
shoppers – whether or Information
not Fulfillment
they choose to use a
y Gat e g
Gathering
search engine Sale/Purchase

23. $25 B Online
% Lift In Conversion Rate2008 Display
Ad Market in When
Awareness
Ads Are Combined With Search:
Interest
Search =
45% of
Desire
dollars
Consumers exposed to both search
Source: Atlas Digital Marketing Insight, 2008
and display ads were 56% more
Action
likely to purchase an Alltel phone, vs.
those who j t clicked on a search ad
th h just li k d hd
Source: eMarketer, Nov, 2008

24. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
3. Don’t ignore the power of Branding online
4. Stay close to the Customer
5. Engender Trust
6. Engage with online Video
7. Test, Test
7 Test Test, Test

25. Stay close to the Customer
“Many businesses will
“M bi ill
turn to the Web to stay in
touch with consumers
t h ith
during a difficult financial
climate. Thi i going t
li t This is i to
be a lifeline.”
--Adam Sarner, analyst, Gartner

27. Teens on social networks in 2008 (eMarketer) 77%
81%
Teens on social networks in 2009 (eMarketer)
T il t ki
60%
Affluent (L
(Luxury I tit t M h 2008)
Institute, March,

28. Look, Listen,
, ,
Lounge & Learn
A.
A Learn how consumers talk about your
product or service category
• Notice what words and language they use
gg y
B. Learn about real or perceived problems with
your product or customer service
dt t i
• e.g., Dell’s lesson learned
C. Unleash the wisdom of the customer!

29. Look, Listen,
Lounge & Learn
A Learn how consumers service wiki]
“[With our customer talk about your
[With end
A.
product or service category
users create the value themselves
• Notice what words and language they use
gg y
and seek th value of other end users
d k the l f th d
like themselves.”
B. Learn about real or perceived problems with
your product or customer service
dt t i
--Brad Smith, CEO, Intuit
• e.g., Dell’s lesson learned
C. Unleash the wisdom of the customer!

30. Look, Listen,
Lounge & Learn
A Learn how consumers service wiki] end
“[With our customer talk about your
[With of TurboTax users’ questions
A.
“40% or service category
product
users create they otherthemselves
value customers,
are Notice what words and language they use
• answered by gg y
and seek higher lrate f other end users
d at a th value of th
k the d
and of accuracy.”
like themselves.”
B. Learn about real or perceived problems with
your product or customer service
dt t i
--Brad Smith, CEO, Intuit
--Brad Smith, CEO, Intuit
• e.g., Dell’s lesson learned
C. Unleash the wisdom of the customer!

32. Runners send videos images and
videos,
songs to their friends, engage
in virtual contests and arranged
irt al
for real meetups
40% of visitors become
converts to Nike’s shoes.
t t Nik ’ h

33. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
3. Don’t ignore the power of Branding online
4. Stay close to the Customer
5. Engender Trust
6. Engage with online Video
7. Test, Test
7 Test Test, Test

36. How do you create trust for your brand?
• Make your product and customer service as
g
good as they can be
y
• Emphasize listening over loud-speaking
• Adapt your digital marketing messages to be
more real – more conversational, less
conversational
“marketing-speak”
• Allow for customer ratings and reviews

37. • Read Reviews

38. • Top products converted at a 49%
higher clip
• Average order size increased 40%
• Read Reviews

39. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
3. Don’t ignore the power of Branding online
4. Stay close to the Customer
5. Engender Trust
6. Engage with online Video
7. Test, Test
7 Test Test, Test

41. 154 million Americans = 80% of Internet users
167.5 million = 87% of Internet users

42. Versus watching TV, online
video viewers are 25% more
engaged i TV content and
d in d
47% more engaged in the ads
ads.
--Simmons 2008
Simmons,

43. US online video ad spending,
in millions
$4,600.0
US online video ad spending,
in millions
$3,000.0
+44.9%
Growth
$1,850
$1,250
2.5%
$850
$587
$324
2007 2008 2009 2010 2011 2012 2013
Source: eMarketer, November, 2008

44. US online video ad spending,
in millions
Gilbane Group: 50% of U.S. firms say
they’re using online video, and 46%$4,600.0
US online video ad spending,
ratemillions effective” (June ‘08)
in it “very
y ( )
$3,000.0
+44.9%
Broadband video ads allow for
Growth
$1,850
greater measurability,
$1,250
2.5%
$850
target-ability and
t t bilit d
$587
$324
share ability!
share-ability!
2007 2008 2009 2010 2011 2012 2013
Source: eMarketer, November, 2008

45. Seven Strategies for Surviving the
Downturn
1. Get with the Accountability program
2. Keep d i S
2K doing Search
h
3. Don’t ignore the power of Branding online
4. Stay close to the Customer
5. Engender Trust
6. Engage with online Video
7. Test, Test
7 Test Test, Test

46. Are marketers
#7. Test, Test,
#7 Test Test Test!!!
missing the bus?
59% claimed
the biggest
obstacle to
Only 24% of U.S. marketers
using
consider their firms to be
id th i fi tb digital
“digitally savvy”. media was
“lack of
lkf
Among B2B marketers,
“Iterate. (blogs, experience”
“A lot 31% have begun to online video
A y of % stuffg(blogs
only this video,
Don’t pontificate.”
etc) you just tactics liketry!”
use Web 2.0 have to
blogs,Michaelnetworks and Director
g--MichaelRishad Tobaccowala
, social Metz Senior Director,
Metz,
--Rishad
podcasts toMarketing and Strategy Cisco
engage buyers Source: Booz Allen Hamilton and
Web Chief Innovation Officer, Publicis Group
ANA, 2007; survey among 184 ANA-
member marketers

47. Are marketers
#7. Test, Test,
#7 Test Test Test!!!
missing the bus?
59% claimed
the biggest
obstacle to
Only 24% of U.S. marketers
using
consider their firms to be
id th i fi tb digital
“digitally savvy”. media was
“lack of
lkf
Among B2B marketers,
“Iterate.begun to experience”
only 31% have g
y%
Don’t pontificate.”
use Web 2.0 tactics like
blogs, social networks and
g, --Rishad Tobaccowala
Rishad
podcasts to Chief Innovation Officer, Publicis Group
engage buyers Source: Booz Allen Hamilton and
ANA, 2007; survey among 184 ANA-
member marketers

48. Are marketers
#7. Test, Test,
#7 Test Test Test!!!
missing the bus?
59% claimed
the biggest
obstacle to
Only 24% of U.S. marketers
using
consider their firms to be
id th i fi tb digital
“digitally savvy”. media was
“Trying
“lack of
lkf
“Iterate.begun to first video
is (blogs online video,
the step
Among B2B marketers, experience”
“A lot 31% have g(blogs,
A y of % stuff
only this
etc)towards failure.”
Don’t pontificate.”
use Webjust tactics liketry!”
you 2.0 have to
blogs,Michaelnetworks and Director
g--MichaelRishad Tobaccowala
, social Metz Senior Director,
Metz,
--Rishad
podcasts toMarketing and Strategy Cisco
engage buyers Source: Booz Allen Hamilton and
Web Chief Innovation Officer, Publicis Group
ANA, 2007; survey among 184 ANA-
member marketers

49. For more information about eMarketer or
for
f a copy of these slides, please contact:
f th lid l tt
David lankelevich
Vice President
Diankelevich@emarketer.com