Interactive Marketing 2.0 spring/summer 2010, Vorlesung Jürgen Rösger, Universität Mannheim

1. Interactive Marketing 2.0
Lecturer:
Jürgen Rösger (Interactive Marketing Group)
Thorsten Dirks (E-Plus)
University of Mannheim
Term spring/summer 2010
page 1

2. Agenda
1. Introduction
2. Branding and Consideration
3. Transaction and Customer Relationship Management
4. Trends and Perspectives
page 2

3. Introduction
page 3

4. Outline
1. Advertising
2. Economy of attention
3. Advertising market
4. Web 1.0 – 3.0
5. Social media
6. Practical examples
page 4

5. Definition of advertising
Advertising …
… is the placement of announcements and persuasive messages...
… in any of the mass media by business firms, nonprofit organizations,
government agencies, and individuals...
… who seek to inform and / or persuade members of a particular target market
or audience about their products, services, organizations, or ideas.
American Marketing Association, 2009
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6. "You listen to radio, you watch TV, but you use the
internet. You go there for particular content and you
are actively in control. The best way for advertisers
to play a part in that world is to develop such a
relevant and engaging experience that consumers
choose to spend time with that campaign."
Adam Good, Marketing Director at Tribal DDB Sydney
page 6

7. Outline
1. Advertising
2. Economy of attention
3. Advertising market
4. Web 1.0 – 3.0
5. Social media
6. Practical examples
page 7

8. The attention-deficit disorder in advertising
Consumersareoverextended!
• Human attentionis a scarcecommodity
• Information overloadoccursdue to:
• 3,2 milliontvspots per year
• 776,628 registeredbrands in Germany in 2009
(50,000 registrations per year)
• Activevocabulary of oneperson: 12,000 words
Consequences of attention-deficitdisorder:
• Despitemarketcrisisgrowingadvertisingbudgets
• Butdecrease of advertisingimpact
Source: gwa.de
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9. Significant shift in utilisation of media
Media utilisation (minutes per day) Internet utilisation
Internet TV Total % 14-29 years old total population
100
86
623 76
594 80
600 574 59
60
60
49
40
500
19 35
20
5
4 11
0
400
1996 1999 2002 2005 2008
300
220
209 189
200
140
96
100
44
0
2005 2010 2015
Source:Allensbacher Markt- und Werbeträgeranalysen, AWA 2008.
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10. Media utilisation affects search behaviour
Information channels during the vehicle buying process
27%
18%
16%
15%
12% 12% 12%
11% 11% 11%
9% 9%
8%
6% 6% 6%
5%
-9% -9% -3% -3% 3% 3% +1% +1% +3% +5% +12%
0%
News- Television Brochures Magazines Radio Friends/ Other/ Manuf. Buying Internet
paper Assoc. Misc. Info Guides
1992 2003
Source:CNW Research, TNS/CMR, Booz Allen Analysis
page 10

11. Media utilisation affects search behaviour
The Internet‘s rise as a research tool in the vehicle buying process
(% of consumer saying they use the Internet as an information source)
Source: Capgemini 2008
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12. Challenging conditions for efficient communication
Competitive environment Customer perspective
• Homogeneity of service • Individualization of values
offerings
Interactive and • Information overload
• Decreasing efficiency of individual customer • Instability of consumption
communication targeting and patterns
• Dilemma of differentiation treatment is needed
• Hybrid consumer behavior
• Focus: costs
Source: Meffert, Marketing Centrum Münster (MCM), 2002
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13. There is only one way to survive
Classic Communication Interactive Communication
Operates from every direction Is bundling all marketing activities
and chases the customer and adjusting them towards the
uncoordinated. consumer throughout all different
communication channels.
Cross-linking of all activities to center the consumer and reach him
…where he will be positioned in future!
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14. The Interactive-Tableau helps to structure
communication activities
Communication cycle
Branding Consideration Transaction CRM
PR
Possible crossmedia integration
PP + Progr.
Print
TV
Online
DM + Mobile
Outlet
page 14

15. Outline
1. Advertising
2. Economy of attention
3. Advertising market
4. Web 1.0 – 3.0
5. Social Media
6. Practical examples
page 15

16. Structure of the advertising market
Manufacturer Provider
of products Advertising spot Money of contents
Advertising Contents,
revenue information
Medium
Products Money Information Money
Information Range of media
Consumer
page 16

17. The value-added chain involves many players
(Volume: 30 bill. Euro) (10 bill. Euro)
Creative
Advertiser Clear message agency
Marketing Sales
Creation (possible joint development)
Budget
(20 bill. Euro)
Media agency
Margin
Intermediate Creating schematic diagram:
• Where?
• Which media?
Mall
• Which formats?
Offline Online
Request /
Booking
“Brings advertising
Recipient material closer
Marketer towards recipient”
 Recall / Recognition
AIDA
 Attitude towards brand TV Print Online
SOR
 Intention to Purchase
 Checking inventory
 Delivering
1
(20 bill. Euro)
Source: Statistisches Bundesamt (BIP 2003)
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18. Advertising market in Germany
Total expenditure 2008: 80.9 bill. Euro (3.25% of GDP)
Media with direct
components %
(exhibitions, couponing,
%
mobile marketing, etc.)
Classical media
(TV, radio, ads, etc.)
Direct marketing
media %
(mail/email marketing,
phone marketing, etc.)
Almost 2/3 spent for direct marketing or media with direct elements
Source: MRSC/TNS Infratest, Deutsche Post 2009
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19. Net-advertising revenues of advertising media
Media 2005 % 2006 % 2007 % 2008 %
Daily newspaper 4.476 -0.6 4.532 1.3 4.567 0.8 4.373 -4.2
TV 3.939 1.8 4.114 4.7 4.155 1.0 4.035 -2.9
Advertising via mail 3.398 0 3.318 -2.3 3.347 0.9 3.291 -1.7
Advertising paper 1.898 3.4 1.943 2.4 1.971 1.4 2.008 1.9
Consumer magazine 1.791 -2.6 1.855 3.6 1.822 -1.8 1.693 -7.1
Register / directory 1.197 0.1 1.198 0.1 1.214 1.3 1.224 0.9
Professional journal 902 4.3 956 6.0 1.016 6.3 1.031 1.5
Outdoor advertising 769 6.8 787 2.4 820 4.2 805 -1.8
Online 332 22.5 495 49.1 689 39.2 754 9.4
Radio 663 7.4 680 2.5 743 9.2 711 -4.3
Weekly / sunday newspaper 252 5.6 260 2.9 269 3.7 265 -1.5
Newspaper supplements 91 1.1 89 -1.2 89 -0.4 86 -3.0
Movie 132 -9.8 117 -11.3 106 -9.6 76 -27.8
Total 19.833 1.3 20.350 2.6 20812 2.3 20.357 -2.2
Source: ZAW, 2009
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20. Classical media and online marketer
TV marketer
RTL, VOX, n-tv, Super RTL Sat.1, ProSieben, Kabel 1, N24 ARD
Print marketer
Focus, Bunte, Chip, Playboy
Stern, Gala, Capital, GEO, Brigitte Woman Fernsehwoche, TV-Movie Bild, Hörzu, Die Welt, Computerbild
TV-Spielfilm, Max, Cinema
Online marketer
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21. Outline
1. Advertising
2. Economy of attention
3. Advertising market
4. Web 1.0 – 3.0
5. Social media
6. Practical examples
page 21

22. Web 1.0
Web 1.0
Strategic positioning
• The Web as further distribution
channel of innovative firms
Software
Databases
solutions
PUSH principle
• Impression
• Consumption
• Value expert judgement
• Personal judgement
• Pre-structured
B2x
Core competences
• Software based solutions
• User is just a consumer
• Few pages in the centre of attention
• Solely company related motivation
concerning the further development of Accounting Sales
applications and contents systems platforms
Source: Zentrum für angewandte Informatik, Universität Köln(2006)
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23. Then: New applications
Personal
Blogs Video sharing Social networks
homepages
…
• 22% of the online- • ~35 mill. blogs are • Over 100 mill. videos • MySpace possesses
teens have an own existing and the regarded – per day more than 100 mill.
homepage (US) amount is doubling • Growth in the first half users, 15 mill. logins
every six months of 2006 already about daily and is growing
• 32% of the online- about 240„000 users a
teens are providing • Posting-volume 300%
day.
input for foreign accounts for 1.6 mill.
homepages or blogs blogs a day • As measured by
visits, MySpace is
• 19% of the online- ranked shortly behind
teens have a blog and Yahoo, but
38% are reading blogs significantly in front of
(US) MSN Microsoft, Time
Warner (incl.
• 7% of the adult AOL), eBay or Google
Internet users have a
blog, 27% are reading
those (US)
Source: Pew Internet & American Life Project, Booz Allen Analysis
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24. Web 2.0
Web 2.0
Strategic positioning
• The Web as platform for an
interactive (social) dialogue
Ad-games
and commerce
PULL principle Blogs Podcasts
• Relevance
• Participation
• Value end-user judgement & opinion
• Reputation / referral
Online-
IP TV
• Adaptive / usage-based structures advertising
Core competences
• Services, not software applications
• Principle of participation& interaction
Online auctions Peer-to-peer
• Faith in user as co-developer
• Utilisation of collective intelligence
• Creation of communities etc. Avatars
Source: Zentrum für angewandte Informatik, Universität Köln (2006)
page 24

25. Web 3.0
Web 3.0
Strategic positioning
• The Web links and interprets
knowledge for every single user
context-dependent Offline
Antizipation principle
• Semantic cross-linking
• Expert systems
• Software agents
• Shopping robots Context-relevant
recommendations
for users
Core competences
• Intelligent cross-linking of knowledge from
the online-, offline and mobile world
• Interpretation of knowledge in terms of the
chronological, spatial and action-specific Online Mobile
user-context
• Support of individual (buying-) decisions
through context-dependent generated
recommendations
Source: Soziologische Beratung (2008)
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26. Smart Personal Assistant
SPA is a web 3.0 portal solution that integrates web 2.0
and semantic web technologies:
You can simultaneously check:
• restaurants, movies
• clubs, weather forecast
• and availability of your friends
to plan your saturday evening.
page 26

27. Outline
1. Advertising
2. Economy of attention
3. Advertising market
4. Web 1.0 – 3.0
5. Social media
6. Practical examples
page 27

28. What is social media?
Source: www.newmediachatter.com
page 28

29. Benefits of social media
Company Customer
Right in the middle instead of just
near by
 Company as creator, moderator and Product comparison, rating and
participant of the social exchange benchmarking
 Quick and direct opportunities of action
for companies
 Identification of trends and perspectives
Acquisition of unbiased customer Exchange of experiences with other
information users
Customer statements are not biased due Active generation of information via
to questioning of the company discussions and systematic questioning
Social Media as a highly credible way of communication
 Other customers are more credible than employees of the enterprise
 Positive effects of a successful social media strategy:
Customer retention, satisfaction, identification, enhancement of attention and increase in sales
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30. Concrete opportunities of action for companies
1. Reactive customer communication
Responses to questions and concerns
 Increase of customer satisfaction, creation of a positive image
2. Initiation of discussions
Systematic placement of topics allows conclusions about customer behavior and attitude
 Increase of attention, support of strategic aims like increase in sales
3. Call for interactivity
Advertising for contests or lotteries via social communities or profiles
 Increase of attention and identification with product
4. Active integration of customers
E.g. participation of customers as moderators within official forums
 Increase of brand acceptance and trust in the brand
5. Consistent social media monitoring
E.g. as early-warning system. What distracts customers from (re-)purchasing?
 Fast possibilities to respond / improvement of customer orientation
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31. Example (Service-Development)
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32. Example (Product-Development)
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33. Example (CSR)
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34. Fan communities within social media
How many internet users can be addressed by DAX enterprises via Facebook, Twitter and Youtube?
Adidas 4,271,763
Deutsche Telekom 2,301,850
BMW 1,340,234
Volksw agen 581,494
Daimler 396,567
Siemens 326,125
Infineon 634
Eon 138,176
Beiersdorf 495
SAP 90,927
Linde 224
Lufthansa 46,190
Salzgitter 160
Deutsche Bank 21,978
Fresenius Med. 110
Deutsche Post 14,462
Bayer 8,808 Commerzbank 23
RWE 8,170 Fresenius Med. 13
Henkel 7,324 K+S 0
BASF 6,948 Merck 0
Deutsche Börse 3,674
Metro 0
Allianz 1,392
Munich Re 0
ThyssenKrupp 777
MAN 760
Source: Vierpartner, 2009.
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35. Outline
1. Advertising
2. Economy of attention
3. Advertising market
4. Web 1.0 – 3.0
5. Social media
6. Practical examples
page 35

36. Example - Revlon (US-Case)
Challenge:
Create a holistic IM idea that will…
1. Leverage limited investment
2. Build a product “story”
3. Make the magic of Hollywood
accessible to consumers
4. Let intrinsic “interact” with the brand
Solution:
Leverage Time Warner‟s most relevant
entertainment assets to create “Revlon on
the Red Carpet” - a high profile and
engaging 360 degree experience
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37. Example - Revlon (US-Case)
All media involved
and integrated
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38. Example - Revlon (US-Case)
Return on objective
Excellent
Consumers engaged with Revlon on the results
Red Carpet… in the end!
• Users spend over 4 minutes on
average with online custom content
• Surpassed entry goals by 300%
• Achieved 33% opt-in rate for
remarketing
page 38

39. Example – MINI
MINI@IAA MINI@the streets
Take a picture of you in the Write a personal message on a
MINI and choose a celebrity special microsite, get a RFID
as your co-driver. chip and then cross along the
billboard – here is your
message!
page 39

40. Example – MINI
MINI online
Car configuration
Merchandise shop
Games
…
page 40

41. Example – MINI
Meet MINI
MINI Challenge MINI to read
page 41

42. Example – Red Bull
Sport -
events
and
sponsoring
page 42

43. Example – Red Bull
Fun and lifestyle
page 43